Settlement Does Not End Everything

Settlement Does Not End Everything

When the parties sign a settlement agreement, everyone often feels that the dispute is over.

In practice, however, that moment may be the beginning of a new phase no less important than the dispute itself.

The questions after settlement are different:

Have all claims actually been closed?
Do obligations remain to be performed later?
Does the wording prevent the dispute from returning in another form?
And is what was agreed capable of enforcement if one of the parties breaches it?

That is why a good settlement must not merely stop the dispute today; it must also prevent tomorrow’s dispute.

The mistake is not always failing to reach an agreement...

Sometimes the mistake is believing that merely signing means the matter has been legally closed.

— Omar Al-Baghdadi