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Civil Lawsuit Settlement Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Civil Lawsuit Settlement Agreement

"I need a Civil Lawsuit Settlement Agreement under Hong Kong law for a construction dispute between my company and a contractor, with a settlement sum of HKD 2.5 million to be paid in installments starting March 2025, including specific provisions for the contractor to complete remedial works."

Document background
The Civil Lawsuit Settlement Agreement is a crucial legal document used in Hong Kong when parties involved in civil litigation decide to resolve their dispute outside of court proceedings. This document is essential for businesses and individuals seeking to avoid prolonged litigation costs and uncertainty of court outcomes. The agreement comprehensively documents the settlement terms, including monetary compensation, releases, and ongoing obligations, while ensuring compliance with Hong Kong's legal framework, including the Civil Justice Reform and various ordinances. It serves as a legally binding contract that effectively terminates the existing lawsuit and prevents future litigation on the same matter, providing finality and certainty to all parties involved.
Suggested Sections

1. Parties: Identifies all parties to the settlement agreement, including their full legal names, addresses, and any relevant registration numbers for companies

2. Background: Outlines the dispute's history, including reference to the civil lawsuit case number, court details, and brief description of the claims

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Settlement Sum: Specifies the agreed settlement amount and currency

5. Payment Terms: Details the payment schedule, method of payment, and any conditions attached to payments

6. Release and Discharge: Comprehensive release of claims between the parties related to the dispute

7. Confidentiality: Terms regarding the confidentiality of the settlement and its terms

8. Non-Admission of Liability: Statement that the settlement does not constitute an admission of liability by any party

9. Entire Agreement: Confirms that this document represents the complete agreement between the parties

10. Governing Law and Jurisdiction: Specifies Hong Kong law as governing law and Hong Kong courts' jurisdiction

11. Counterparts and Execution: Provisions for signing the agreement and the validity of counterparts

Optional Sections

1. Non-Disparagement: Prohibits parties from making negative statements about each other - used in sensitive or high-profile cases

2. Tax Implications: Addresses responsibility for taxes arising from the settlement - used when settlement involves significant sums or tax implications

3. Insurance Matters: Relevant when insurance companies are involved in funding the settlement

4. Third Party Rights: Required when the settlement affects rights of parties not directly involved in the agreement

5. Continuing Obligations: Used when certain obligations from the original relationship need to survive the settlement

6. Publicity and Announcements: Specific terms about public statements - used in high-profile cases

7. Return of Documents/Property: Used when physical items or documents need to be returned as part of settlement

8. Future Cooperation: Required when parties need to cooperate after settlement, such as in implementing settlement terms

Suggested Schedules

1. Schedule 1 - Payment Schedule: Detailed breakdown of payment installments, dates, and amounts

2. Schedule 2 - Released Claims: Comprehensive list of all claims being settled and released

3. Schedule 3 - Required Actions: List of specific actions parties must take to implement the settlement

4. Schedule 4 - Form of Release: Template of any additional release documents to be signed

5. Appendix A - Related Court Documents: Copies of relevant court filings or orders

6. Appendix B - Settlement Calculations: Detailed calculations of settlement amounts including interest if applicable

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Financial Services

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Relevant Roles

Legal Counsel

Chief Legal Officer

Litigation Manager

Risk Manager

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Settlement Administrator

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