Civil procedure
Settlement Agreement
A settlement agreement is the contract in which the parties resolve a lawsuit themselves, usually with a payment and a release of claims.
Most federal civil cases end this way. Terms are frequently confidential and never filed, so the docket may show only a notice of settlement and then a stipulated dismissal, with the substance left off the public record.
Some settlements need the court's blessing. Class actions, cases involving minors, and many wage-and-hour claims require judicial approval so that people who did not negotiate the deal are not bound to a bad one.
Whether the court keeps jurisdiction matters later. If the dismissal order incorporates the settlement terms or expressly retains jurisdiction, a broken promise can be enforced in the same case; if not, enforcement means filing a new breach of contract suit.
How it appears on a docket
NOTICE of Settlement filed by all parties. All pending deadlines are vacated; dismissal papers due within 30 days.
Governing rule
Fed. R. Civ. P. 41(a); 23(e) for class settlements
Related terms
- Consent Decree — A consent decree is a settlement that the judge signs as a court order, so its terms can be enforced by the court.
- Stipulation — A stipulation is a written agreement between the parties about some part of the case, filed so the court can rely on it.
More on civil procedure
See this term in a real case
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