Suing After Settlement Agreement: Is it Possible?

Settlement agreements are legal documents that outline the terms and conditions of a settlement between two or more parties. Once signed, settlement agreements are generally considered final and binding. However, there are situations where one party may wish to sue the other even after a settlement agreement has been reached.

So, is it possible to sue after a settlement agreement? The answer is yes, but it can be complicated. Let`s take a closer look.

The Basics of Settlement Agreements

Before we dive into the issue of suing after a settlement agreement, let`s review the basics of these legal documents. Settlement agreements are typically used to resolve disputes outside of court. They can be used in a variety of situations, including personal injury cases, employment disputes, and business conflicts.

Settlement agreements are often reached through negotiation between the parties involved. Once a settlement agreement is signed, it becomes a legally binding contract that outlines the terms and conditions of the settlement.

When Can You Sue After a Settlement Agreement?

If a settlement agreement has been signed, it may seem like the dispute has been resolved and there is no need for further legal action. However, there are situations where one party may wish to sue the other even after a settlement agreement has been reached.

There are several reasons why this may occur. For example:

1. Breach of Contract

If one party breaches the terms of the settlement agreement, the other party may have the right to sue for breach of contract. In this situation, the party that breached the agreement may be held liable for damages, including any costs associated with bringing the lawsuit.

2. Fraud

If one party entered into the settlement agreement based on fraud or misrepresentation, the other party may have the right to sue for fraud. This typically occurs when one party intentionally misrepresents a fact or conceals information that would have affected the outcome of the settlement agreement.

3. Unconscionability

If a settlement agreement is deemed unconscionable, one party may be able to sue to have the agreement voided. Unconscionability refers to a situation where one party has an unfair advantage over the other in the negotiation of the settlement agreement.

4. Change in Circumstances

Finally, if there is a significant change in circumstances after the settlement agreement has been signed, one party may be able to sue for a modification or termination of the agreement. This typically occurs when something unexpected happens that materially affects the outcome of the settlement agreement.

Conclusion

While settlement agreements are generally considered final and binding, there are situations where one party may wish to sue the other even after the agreement has been signed. If you find yourself in this situation, it is important to consult with a qualified attorney who can help you understand your legal options and determine the best course of action.