Properly finalizing settlement for civil suit regarding debt..

[bombay24]

I have been negotiating a settlement with an OC since being served. The trial date is about a week and a half away, and we agreed to terms on a settlement earlier this week.

I sent them an offer which was a lump sum payment in return for full settlement of the debt, dismissal of the case with prejudice, and a release signed by their client. I asked that they sign and return my letter if they agreed to its terms. Instead, I got a call from them the following day saying that they would agree to my terms, but I would have to have the money in their hands and file a dismissal of my counterclaim before they would file a dismissal of the case. They then sent me their own letter which outlined everything in my original terms other than a release from their client. Their letter was also not signed by the attorney, however it did have their letterhead and all of the case/account info. It also asked that I send the money to the law firm, not the OC. However, I am pretty certain the OC still owns the debt as I contacted them and asked about it as well as one of the attorney's responses stated it was the OC.

My questions:
Should i insist that a release by their client be included?

Is their unsigned settlement letter appropriate?

Should i pay them and dismiss my counterclaim prior to them dismissing? Is this the typical process?

With the court date so close, should I file for a continuance just in case?


Thank you in advance for your help. I just want to make sure i do these final stages properly so that this is closed and I don't EVER have to deal with it again. This has been a huge headache and I really appreciate all of the help I have gotten!

 

[Michael Wechsler]

Good for you and congrats on settling your case.

Even though there is always a discussion as to who signs first, if I were paying the money I'd insist on getting an executed agreement and problems could be solved easily. The offer is accepted pending the receipt of the mentioned amount on or before a specific date. That should work.

With regard to the debtor, the check could be made payable to the attorney's escrow account and that's fine. The case shouldn't proceed and wouldn't - if the attorney pushed it, he/she could be subject to sanctions since the case was settled. I'd find it difficult to believe that would happen. You've got the letter which should read as a "stipulation of settlement" or something of the like. You probably want to get an attorney to review it, just in case.