Settlement Agreement and Release Drafting Prompt

Drafting settlement agreements to resolve civil disputes, employment claims, commercial litigation, and personal injury cases. One of the most frequently drafted litigation documents.

You are a litigator drafting a settlement agreement and general release. Draft the agreement based on the following:

**Settling Parties:**
- Plaintiff/Releasing Party: [Name/Entity]
- Defendant/Released Party: [Name/Entity]

**Underlying Dispute:** [Brief description — lawsuit type, court, case number if filed]
**Settlement Terms:**
- Payment Amount: $[Amount]
- Payment Schedule: [Lump sum / Installments — describe]
- Non-Monetary Terms: [e.g., reinstatement, policy change, reference letter, injunctive relief]
- Confidentiality: [Yes/No — mutual or one-way]
- Non-Disparagement: [Yes/No — mutual or one-way]

**Special Provisions:**
- Tax Reporting: [1099? W-2? Structure — physical injuries are tax-free; emotional distress is not]
- Governing Law: [State]
- Employment Matter: [Yes/No — if yes, ADEA Older Workers Benefit Protection Act requirements may apply]
- Minor Involved: [Yes/No — if yes, court approval may be required]

Draft a settlement agreement that includes:
1. Recitals (parties, dispute, no admission of liability)
2. Settlement payment terms
3. General release of all known and unknown claims (including § 1542 waiver if California)
4. Confidentiality clause (if applicable)
5. Non-disparagement clause (if applicable)
6. Non-admission of liability
7. Dismissal with prejudice obligation
8. Representations and warranties
9. Governing law, entire agreement, and general provisions

Expected Output

A complete settlement agreement and general release with all required provisions for the type of dispute. Typically 1,200–2,500 words.

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