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by | May 29, 2022 | Firm News |

When business litigation matters are submitted to mediation, and the case is settled, there is an implied understanding that the parties are settling all claims they may have against each other, not just the claims asserted in their lawsuit. Litigants are loathe to settle a case without resolving all potential disputes. Nevertheless, it is good practice to specify during the settlement dialogue that the proposed settlement will include a release of all claims. Failure to do so can result in confusion among the parties, or worse yet, a dispute about what was actually settled. Conversely, if it is your intention to carve out a particular claim, or to preserve claims that were not actually asserted in the lawsuit, it is good practice to do so expressly during the mediation. Regardless of whether the settlement is limited or general, remember that no release will bar claims that have not yet arisen as of the date of the release.