Settlement Agreement and Release
(PA)

Summary

This template is a settlement agreement and release that may be used in a Pennsylvania state court case. It contains drafting notes and optional clauses. The end of litigation, release of liability, and the monetary settlement are the most important part of the litigation process. The terms and conditions of the release are contractual and based upon the agreement or understanding of the parties. You can delete, modify, or add any clause necessary for the settlement of your particular case. Make sure to include all desired terms in your agreement and to read all versions of any settlement agreement that has been drafted by another party or circulated among the parties for revisions. Relevant Pennsylvania law regarding ethical conduct may apply to the drafting or circumstances surrounding the settlement. Pennsylvania Rules of Professional Conduct apply and overlap in the context of settlement of litigation and release of liability. See Pa. RPC 1.1 regarding attorney competence, Pa. RPC 1.3 regarding attorney diligence, Pa. RPC 1.4 regarding communication with client, Pa. RPC 3.4 regarding fairness to opposing party, and Pa. RPC 4.1 truthfulness to others. These Rules of Professional Conduct set forth the minimum ethical standards for the practice of law and constitute a set of rules that all attorneys must follow. When drafting or reviewing a settlement agreement, make sure to include all necessary settlement terms and eliminate any ambiguity. The agreement should specify the rights, claims, obligations, or interests that the settlement will release, and it should also specify any claims or obligations that are not part of the settlement. Pennsylvania law requires you to obtain express settlement authority from your client. No negotiations should occur in the absence of client authority and consent. You are required to inform the client of all developments in settlement discussions, including every settlement offer and counteroffer. Depending on the nature of the case and the relationship between counsel, you may choose to engage in direct settlement negotiations with opposing counsel or a representative of the defendant or its insurer. For more information on settlement agreements in Pennsylvania, see Settlement Fundamentals and Tactics (PA). For a full listing of key content covering fundamental civil litigation tasks throughout a Pennsylvania state court litigation lifecycle, see Civil Litigation Fundamentals Resource Kit (PA).