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Glossary
Demands, releases, mediation, structured settlements, liens, and the resolution mechanics of complex claims.
settlement-and-alternative-dispute-resolution
An aggregate settlement resolves the claims of multiple clients represented by the same lawyer in a single collective agreement.
Alternative dispute resolution refers to methods of resolving disputes outside trial, principally mediation, arbitration, and neutral evaluation.
Arbitration is a private dispute resolution process in which a neutral arbitrator hears evidence and issues an award, usually binding with very limited...
An arbitration clause is a contract provision requiring disputes to be resolved through arbitration rather than in court.
An assignment of claims transfers a party's cause of action to another, frequently as part of a settlement.
Binding arbitration submits a dispute to an arbitrator whose award is final and enforceable with very limited review.
A caucus is a private session between the mediator and one party, held separately from the other side.
A class action waiver in an arbitration agreement requires disputes to proceed individually rather than on a class basis.
The common fund doctrine requires a lienholder benefiting from a recovery to share the attorney fees that produced it.
A confidential settlement restricts disclosure of the resolution terms, subject to statutory and court limitations.
A consent judgment is a judgment entered on the parties' agreement, carrying preclusive effect and enforceability.
A counteroffer responds to a settlement offer with different terms, rejecting the original offer.
A covenant not to execute is an agreement by a claimant not to collect a judgment from the defendant personally, usually paired with an assignment of...
Early neutral evaluation gives parties a candid assessment of their case from an experienced neutral early in litigation.
An ERISA lien is a self-funded employee health plan's claim for reimbursement of medical benefits paid, enforced under federal law with limited defenses...
A general release discharges all claims between the parties, whether known or unknown, arising from any matter.
A global settlement resolves all related claims against a defendant in a single coordinated agreement rather than case by case.
A high-low agreement sets a guaranteed minimum and maximum recovery regardless of the verdict, letting both sides cap risk while trying the case.
A hospital lien is a statutory claim by a hospital against a personal injury recovery for the value of care provided.
Impasse is the point at which mediation participants cannot bridge their remaining difference.
An indemnity clause in a settlement shifts responsibility for third-party claims, most often liens, to the settling plaintiff.
An inventory settlement resolves all claims held by a single plaintiff firm in one negotiation, rather than settling cases individually.
A judicial settlement conference is a settlement negotiation conducted by a judge or magistrate rather than a private neutral.
A letter of protection is an attorney's written promise to pay a medical provider from settlement proceeds, allowing an uninsured claimant to obtain...
Lien resolution is the process of identifying, negotiating, and satisfying medical, insurance, and government claims against settlement proceeds.
A limited release discharges only defined claims, preserving others the releasing party may hold.
A lump sum settlement pays the entire resolution amount at once rather than over time.
The made whole doctrine bars a subrogated insurer from recovering until the insured has been fully compensated.
A Mary Carter agreement is a settlement in which a settling defendant remains in the case with its payment tied to the outcome.
Mass arbitration is the coordinated filing of thousands of individual arbitration demands against one company, weaponizing the arbitration clause the...
Mediation is a confidential process in which a neutral third party helps disputing parties negotiate a voluntary settlement without deciding the case.
Mediation confidentiality protects communications made during mediation from later disclosure or use.
Mediation privilege is the evidentiary protection barring use of mediation communications in later proceedings.
A mediator is a neutral third party who facilitates settlement negotiation without deciding the dispute.
A mediator's proposal is a settlement figure the mediator proposes, accepted or rejected confidentially by each side.
A Medicaid lien is a state agency claim against a personal injury recovery for medical assistance benefits paid.
A medical provider lien is a claim by a treating provider against a personal injury recovery for unpaid charges.
A Medicare conditional payment is medical care Medicare paid for that another party was responsible for, which must be reimbursed from a settlement.
The Medicare Secondary Payer statute makes Medicare the secondary payer to liability, no-fault, and workers' compensation coverage, with rights to recover...
A Medicare set-aside is a portion of a settlement allocated to pay future injury-related medical care that Medicare would otherwise cover.
Minor settlement approval is the court proceeding required to bind a minor to a settlement of their claim.
A motion to compel arbitration asks a court to enforce an arbitration agreement by requiring the parties to arbitrate rather than litigate.
Non-binding arbitration produces an advisory award that either party may reject, proceeding to trial instead.
A non-disparagement clause restricts the parties from making negative statements about each other after settlement.
A nuisance value settlement resolves a claim for less than the cost of defending it, without regard to merit.
An offer of judgment is a formal settlement offer that shifts certain costs to the rejecting party if the final judgment is not more favorable than the offer.
A participation threshold is the minimum acceptance rate required before an aggregate settlement becomes binding.
A point system settlement allocates a settlement fund by assigning points to claim characteristics and dividing proportionally.
A policy limits demand is an offer to settle a claim for the full amount of available insurance coverage, releasing the insured from further exposure.
A qualified settlement fund is a court-established trust holding settlement proceeds pending allocation and lien resolution.
A release is the settlement provision by which a claimant gives up specified claims against identified parties in exchange for consideration.
A settlement is the voluntary resolution of a dispute by agreement between the parties, ending the claim without a verdict.
A settlement agreement is the contract documenting a resolution's terms, including payment, releases, dismissal, confidentiality, and any continuing...
Settlement authority is the maximum amount a representative is empowered to commit in negotiation, typically set by the client or insurer.
A settlement conference is a facilitated negotiation session, frequently conducted by a judge or magistrate.
A settlement demand is the claimant's stated amount and terms to resolve a claim, usually supported by documentation of liability and damages.
A settlement matrix is a scoring framework assigning values to individual claims based on defined criteria such as injury severity, exposure, and age.
A sliding scale agreement guarantees a plaintiff a minimum recovery from a settling defendant, offset by amounts recovered from others.
A structured settlement pays a claimant over time through an annuity rather than in a single lump sum, often with tax advantages for personal injury...
Subrogation is an insurer's right to recover what it paid by stepping into the shoes of its insured and pursuing the party responsible for the loss.
A summary jury trial presents an abbreviated case to an advisory jury whose non-binding verdict informs settlement.
A time-limited demand is a settlement demand that expires on a stated date, creating pressure on the insurer to evaluate and respond within a compressed...
Vacatur of an arbitration award is judicial nullification, available only on narrow statutory grounds.
A walk-away settlement resolves a claim with each party bearing its own costs and no payment exchanged.
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