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How to Protect Settlement Agreement

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In this video, John Fogger from Defend My Biz discusses settlement agreements related to labor claims in California. He explains that many claims may not be valid and often stem from attorneys sending demand letters for payment, which is permissible under California law. He acknowledges clients' frustration and reluctance to pay amounts they believe are unwarranted. Despite this, he advises clients to approach the situation as a business decision rather than an emotional one. He shares an example of a client who insists on their innocence, highlighting the importance of evaluating claims objectively.

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Can you change your mind after agreeing to a settlement?

A settlement agreement is a contract, and a contract can be renegotiated at any time before it is finalized and executed. If you have agreed to a specific settlement amount, but now you feel this amount is not enough, you can ask your employer to revise their offer.

What happens after you agree to a settlement?

After a case is settled, meaning that the case did not go to trial, the attorneys receive the settlement funds, prepare a final closing statement, and give the money to their clients. Once the attorney gets the settlement check, the clients will also receive their balance check.

Is an unsigned settlement agreement legally binding?

A settlement agreement need be signed by only one of the parties to be enforceable under Code of Civil Procedure 664.6. The court can enforce a settlement pursuant to Code of Civil Procedure 664.6 if the parties state in the settlement agreement that the court will reserve jurisdiction.

Should I accept a settlement agreement?

In my experience it is generally not a good idea to reject the offer of a settlement agreement without even trying to negotiate the terms first unless you make a counter-offer you wont know whether what you want to negotiate is achievable. Almost always try and negotiate the terms first.

What happens if you dont accept a settlement?

If you dont accept a settlement agreement, your case will proceed to the next steps. If you have already filed a lawsuit, this means that you might have more hearings and eventually go to trial. Keep in mind that there is a chance you could lose in court.

How do I make my settlement confidential?

Most employers will want to keep the terms of a settlement agreement confidential. To ensure this happens, confidentiality clauses can be built into a settlement agreement. These clauses stipulate that an employee cannot discuss the existence of the agreement or its terms.

What makes a settlement agreement void?

A signed settlement agreement is a powerful document requiring the demonstration of an extreme condition to render it null and void. If a party wishes to back out of the settlement, then they must prove the existence of fraud, duress, coercion, or unconscionability.

Can a settlement agreement be challenged?

Setting aside a settlement agreement concluded pre-issue Where the agreement has been entered into before proceedings have been issued, a claim will need to be brought seeking an order for a declaration of invalidity. Alternatively, any agreement can be set aside with the consent of all parties.

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