View random article

What Is a Final Settlement?

When settling a legal case, it is possible for either litigant to open the case once again in matters of an appeal. However, to prevent this from occurring, it is possible that each involved litigant agree never to open or bring forth the case to a court of law. This type of agreement is known as a final settlement.

A final settlement is a mechanism by which cases are closed and remain closed. This is usually done in a court of law where all involved litigants agree to close the case or this can also be done through an out of court agreement through the assistance of each litigant’s respective lawyers. Once all involved parties have agreed to close the case, the case is finished. Thus, the finality of a final settlement cannot be questioned or undermined. It is therefore necessary to exercise caution when entering into a final settlement as the case can no longer be brought before a court of appeals.

A final settlement is characterized by an agreement from all involved parties to no longer pursue any further legal action. This includes reopening or appealing the case. This essentially means that the case was resolved and no other disputes can arise from it. A final settlement also includes a prescribed plan of action for all involved parties. This may include the payment of damages or pursuing a particular line of action. It is necessary that all involved parties fulfill their plan of action in order for the case to be completely resolved and conclude in a final settlement.

Featured in Finance