Question 1

Once a civil complaint has been filed in court, alternative dispute resolution stops.

Accepted Answer

Alternative dispute resolution methods such as mediation and arbitration can still be pursued even after a civil complaint has been filed in court. In fact, many courts encourage parties to explore these options before proceeding to trial.

Question 2

Any settlement agreement between the Martins and the Sports and Recreation Center must meet all the legal requirements of a contract.

Accepted Answer

Any agreement between the Martins and the Sports and Recreation Center would need to meet the legal requirements to be considered a binding contract. This would include elements such as offer, acceptance, consideration, and the capacity of the parties to enter into the agreement.

Question 3

In deciding whether to settle, the parties should consider the lengthy time required to bring a case to trial in Houston.

Accepted Answer

This statement is true. Houston has a busy court system and it can often take a significant amount of time to bring a case to trial. This is an important factor for parties to consider when deciding whether or not to settle a case.

Question 4

The settlement summary ________.

Accepted Answer

The settlement summary contains all information outlining the benefit of settling the case at an early stage in the litigation.

Question 5

Settlement negotiations are not conducted simultaneously with the active preparation of the lawsuit.

Accepted Answer

Settlement negotiations can be conducted at any time, including during the active preparation of a lawsuit. In fact, many attorneys will attempt to negotiate a settlement before even filing a lawsuit in order to avoid the time and expense of litigation.

Question 6

To prevent the Martins from bringing another lawsuit, a stipulated dismissal with prejudice should be prepared.

Accepted Answer

A stipulated dismissal with prejudice would prevent the Martins from bringing another lawsuit based on the same claim or issue.

Question 7

Most civil cases end in a settlement.

Accepted Answer

Settlements are a common outcome in civil cases as both parties often prefer to avoid the time and expense of a trial.

Question 8

A settlement agreement is a contract between the parties and must meet all of the legal requirements of a contract.

Accepted Answer

A settlement agreement is a legally binding contract that must meet all the legal requirements of a contract, such as an offer, acceptance, consideration, and mutual agreement. It outlines the terms and conditions upon which the parties have agreed to resolve a dispute, and once signed, it is binding and enforceable.

Question 9

The settlement brochure is ________.

Accepted Answer

The settlement brochure is a persuasive settlement tool used to provide a detailed and compelling argument for reaching a settlement. It is typically longer and more comprehensive than other legal documents and may involve significant costs to produce.

Question 10

A full and final settlement utilizes a ________ release.

Accepted Answer

A full and final settlement typically utilizes a general release, which releases all claims related to the matter at hand.

Question 11

A general release cancels all claims that a party has in a case.

Accepted Answer

By signing a general release, all parties involved agree to release each other from any further liability or claims related to the case or dispute. This means that all claims are canceled, and the matter is considered resolved without the need for further legal action.

Question 12

The settlement agreement in this case is valid without consideration.

Accepted Answer

For a settlement agreement to be valid, there must be consideration, which is something of value exchanged between the parties to make the agreement legally binding. Without consideration, the agreement lacks one of the essential elements required for a valid contract.

Question 13

The client's personal history should not be included in the settlement brochure.

Accepted Answer

The client's personal history can be relevant in a settlement brochure as it may provide context and support for the claims being made, helping to humanize the client and illustrate the impact of the incident on their life.

Question 14

A settlement agreement must ________.

Accepted Answer

A settlement agreement must involve the voluntary mutual assent of the parties, involve consideration, and be legal and made by parties with the capacity to contract. All three elements are necessary for a valid and enforceable settlement agreement.

Question 15

If the client does not approve the settlement, the attorney cannot agree to it, no matter how lucrative and beneficial it might be.

Accepted Answer

Attorneys are bound by their ethical duties to act in the best interests of their clients. If the client does not approve the settlement, the attorney cannot agree to it without violating this duty.

Question 16

A factor or factors that should be considered before deciding to settle a case is/are ________.

Accepted Answer

All the factors listed - time and money, the court's prior decisions, and the tactics of the other party's attorney - are important to consider before settling a case. Time and money are always a consideration, especially when the costs of litigation may outweigh the potential benefits of winning the case. Previous court decisions in similar cases can provide helpful guidance on how a judge or jury may rule, and the tactics of the other party's attorney can give insights into their strategy for winning the case. Therefore, all of these factors should be taken into account before deciding to settle a case.

Question 17

The Martins' attorney may not accept a settlement on their behalf unless it is acceptable to the Martins.

Accepted Answer

This is known as the principle of "client acceptance," where an attorney cannot accept a settlement offer without the client's consent. It is a fundamental aspect of attorney-client relationship and ethical practice.

Question 18

Alternative dispute resolution is becoming a popular substitute for the litigation process.

Accepted Answer

Alternative dispute resolution methods such as mediation and arbitration are gaining popularity as a way to resolve disputes without having to go through the time-consuming and expensive litigation process.

Question 19

Drafting settlement summaries and settlement letters is an important part of the settlement process.

Accepted Answer

Drafting settlement summaries and settlement letters is crucial in documenting the terms of a settlement agreement and ensuring both parties understand their obligations. These documents can also serve as evidence in the event of a dispute over the settlement agreement.

Question 20

The objective and contents of a settlement summary, settlement letter, and settlement brochure are basically the same.

Accepted Answer

The objective and contents of a settlement summary, settlement letter, and settlement brochure are all intended to provide a summary of the terms of a settlement agreement.

Quiz 14: Settlements, Dismissals, and Alternative Dispute Resolution