LAW 522-001 – Civil Procedure II
Roughly 50–65% of cases end in settlement as it is faster, cheaper, more confidential, and less risky than going to trial.
If a settlement is reached prior to filing suit, a court does not need to approve it.
It is generally required that a new action be brought for a later breach of the settlement.
Settlement agreements can be oral, but it is risky.
As part of a settlement, generally all claims are dismissed with prejudice and a general release is signed.
A release can be general, releasing all known or unknown claims, or specific, only releasing the claims specified.
Confidentiality agreements are often considered in settlement agreements.
Alternative Dispute Resolution
To facilitate a settlement, parties may partake in alternative dispute resolution.
Mediation is a type of alternative dispute resolution where a mediator helps parties reach settlement agreements.
Arbitration is a type of alternative dispute resolution which is a mini trial by a private arbitrator.
Alternative dispute resolution can be binding or non-binding, depending on whether the parties agreed to it beforehand.
If binding, the result is not appealable.
A court can order mediation or arbitration, but not for it to be binding.