Hi guys, below is the agreement my friend got from a lawyer. Do you think it is a fair contract ? Is it possible that X will later sue Mr. A for other claims they might have ? My concern is that Mr. A will be sued by X for other things not stated in the contract. Please advise. Thank you.
SETTLEMENT AGREEMENT AND MUTUAL RELEASE
Recitals
1. The parties to this Settlement Agreement and Mutual Release are company X
(hereinafter X) and Mr. Abc (hereinafter Mr. A).
2. Mr. A was employed by and worked at X between March 2002 through
October 2002.
3. Mr. A filed a claim with the Labor Commissioner of the State of California, Department
of Industrial Relations, Division of Labor Standards Enforcement, entitled Mr. A v. X, <street address of company X> and <case number>.
4. In the claim identified in Paragraph 3 above, Mr. A claims that he is entitled to receive
payment of overtime wages in the amount of $1,012.50 (one thousand twelve dollars and fifty cents); a
total of $675.00 (six hundred seventy five dollars) for X's failure to provide him rest periods
between April 15, 2002 through October 10, 2002; payment of gratuities in the amount of $150.00
(one hundred fifty dollars) and waiting time penalties at the rate of $84.38 (eighty four dollars and thirty
eight cents) for thirty days for X's alleged failure to pay his final wages in violation of California
Labor Code Section 202.
5. X denies that Mr. A is entitled to the sums claimed, and denies any and all liability
for Mr. A's claims described in Paragraphs 3 and 4, whatsoever. X has claims against
Mr. A that arose during the term of his employment, which include a claim against Mr. A for
his failure to return uniforms owned by X upon completion of his term of employment, and also
for overpayment of wages, wherein Mr. A was paid mistakenly for off duty meal periods,
payment to which Mr. A was not entitled.
Settlement Terms
6. Mr. A has accepted the sum of $1000.00 (one thousand dollars
and zero cents) to fully and completely resolve his claims for nonpayment of wages against
X, including the claims identified in Paragraph 4 above.
7. X has paid Mr, A the sum of $1000.00 (one thousand dollars
and zero cents) less the deductions for taxes as required by both federal and state law.
8. X agrees to release its claims against Mr. A for his failure to return his uniforms
and any overpayment of wages, as set forth in Paragraph 5 above. X will also provide a
neutral reference to any prospective employers of Mr. A, upon request.
9. CONFIDENTIALITY. Except as required by federal or state law, neither Mr. A, his
attorneys, nor any person acting by, through, under of in concert with them, shall disclose the terms of
this settlement (other than the fact that the dispute has been resolved) to any individual or entity. It shall
not be a violation of this provision, however, for EMPLOYEE to advise his accountant or similar
professional advisor of the terms of this Settlement Agreement and Release.
In the event any unauthorized disclosure is made, Mr. A shall immediately return to
X all sums paid hereunder and shall reimburse X for all costs, including court costs and
attorney's fees, if any, incurred in establishing that such a disclosure was made. If any party to this
Settlement Agreement and Release sues to enforce this Agreement, the prevailing party to such suit
shall be entitled to recover, in addition to any other relief, its costs and expenses, including court costs
and attorney's fees, if any, incurred in connection with such suit.
In response to any inquiry by any person, each of the parties agrees to state only that the
dispute has been resolved to the mutual satisfaction of the parties.
Release of Claims
10. In consideration for performance of the promises by X set forth in paragraph 8, and
performance of the promises set forth by Mr. A and X in Paragraph 9, both parties
hereto agree, on behalf of itself and on behalf of each of its respective heirs, executors, administrators,
trustors, trustees, beneficiaries, predecessors, successors, assigns, partners, partnerships, principals,
agents, employees, servants, representatives, and all persons, firms, associations, and/or corporations
connected with them, including, without limitation, their insurers, sureties, and attorneys (collectively
"Releasors") hereby release and forever discharge each other party to this Agreement, and each other's
party's respective heirs, executors, administrators, trustors, trustees, beneficiaries, predecessors,
successors, assigns, partners, partnerships, principals, agents, employees, servants, representatives, and
all persons, firms, associations and/or corporations connected with them, who are or may ever become
liable to them, including, without limitation, their insurers, sureties and attorneys (collectively
"Releasees"), or from any and all claims, demands, causes of action, obligations, attachment liens,
damages, incidental, consequential, ensuing or resulting damages, losses, costs, attorneys' fees and
expenses of every kind and nature whatsoever, known or unknown, fixed or contingent, including any
and all rights to subrogation therefor, which any Releasor may now have or may hereafter have against
any Releasee to this Agreement by reason of the claims set forth herein. X specifically agrees,
upon condition of full performance of this agreement, to release any and all claims it now holds against
Mr. A which arose during the time of and out of the term of his employment with X.
SETTLEMENT AGREEMENT AND MUTUAL RELEASE
Recitals
1. The parties to this Settlement Agreement and Mutual Release are company X
(hereinafter X) and Mr. Abc (hereinafter Mr. A).
2. Mr. A was employed by and worked at X between March 2002 through
October 2002.
3. Mr. A filed a claim with the Labor Commissioner of the State of California, Department
of Industrial Relations, Division of Labor Standards Enforcement, entitled Mr. A v. X, <street address of company X> and <case number>.
4. In the claim identified in Paragraph 3 above, Mr. A claims that he is entitled to receive
payment of overtime wages in the amount of $1,012.50 (one thousand twelve dollars and fifty cents); a
total of $675.00 (six hundred seventy five dollars) for X's failure to provide him rest periods
between April 15, 2002 through October 10, 2002; payment of gratuities in the amount of $150.00
(one hundred fifty dollars) and waiting time penalties at the rate of $84.38 (eighty four dollars and thirty
eight cents) for thirty days for X's alleged failure to pay his final wages in violation of California
Labor Code Section 202.
5. X denies that Mr. A is entitled to the sums claimed, and denies any and all liability
for Mr. A's claims described in Paragraphs 3 and 4, whatsoever. X has claims against
Mr. A that arose during the term of his employment, which include a claim against Mr. A for
his failure to return uniforms owned by X upon completion of his term of employment, and also
for overpayment of wages, wherein Mr. A was paid mistakenly for off duty meal periods,
payment to which Mr. A was not entitled.
Settlement Terms
6. Mr. A has accepted the sum of $1000.00 (one thousand dollars
and zero cents) to fully and completely resolve his claims for nonpayment of wages against
X, including the claims identified in Paragraph 4 above.
7. X has paid Mr, A the sum of $1000.00 (one thousand dollars
and zero cents) less the deductions for taxes as required by both federal and state law.
8. X agrees to release its claims against Mr. A for his failure to return his uniforms
and any overpayment of wages, as set forth in Paragraph 5 above. X will also provide a
neutral reference to any prospective employers of Mr. A, upon request.
9. CONFIDENTIALITY. Except as required by federal or state law, neither Mr. A, his
attorneys, nor any person acting by, through, under of in concert with them, shall disclose the terms of
this settlement (other than the fact that the dispute has been resolved) to any individual or entity. It shall
not be a violation of this provision, however, for EMPLOYEE to advise his accountant or similar
professional advisor of the terms of this Settlement Agreement and Release.
In the event any unauthorized disclosure is made, Mr. A shall immediately return to
X all sums paid hereunder and shall reimburse X for all costs, including court costs and
attorney's fees, if any, incurred in establishing that such a disclosure was made. If any party to this
Settlement Agreement and Release sues to enforce this Agreement, the prevailing party to such suit
shall be entitled to recover, in addition to any other relief, its costs and expenses, including court costs
and attorney's fees, if any, incurred in connection with such suit.
In response to any inquiry by any person, each of the parties agrees to state only that the
dispute has been resolved to the mutual satisfaction of the parties.
Release of Claims
10. In consideration for performance of the promises by X set forth in paragraph 8, and
performance of the promises set forth by Mr. A and X in Paragraph 9, both parties
hereto agree, on behalf of itself and on behalf of each of its respective heirs, executors, administrators,
trustors, trustees, beneficiaries, predecessors, successors, assigns, partners, partnerships, principals,
agents, employees, servants, representatives, and all persons, firms, associations, and/or corporations
connected with them, including, without limitation, their insurers, sureties, and attorneys (collectively
"Releasors") hereby release and forever discharge each other party to this Agreement, and each other's
party's respective heirs, executors, administrators, trustors, trustees, beneficiaries, predecessors,
successors, assigns, partners, partnerships, principals, agents, employees, servants, representatives, and
all persons, firms, associations and/or corporations connected with them, who are or may ever become
liable to them, including, without limitation, their insurers, sureties and attorneys (collectively
"Releasees"), or from any and all claims, demands, causes of action, obligations, attachment liens,
damages, incidental, consequential, ensuing or resulting damages, losses, costs, attorneys' fees and
expenses of every kind and nature whatsoever, known or unknown, fixed or contingent, including any
and all rights to subrogation therefor, which any Releasor may now have or may hereafter have against
any Releasee to this Agreement by reason of the claims set forth herein. X specifically agrees,
upon condition of full performance of this agreement, to release any and all claims it now holds against
Mr. A which arose during the time of and out of the term of his employment with X.
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