Crafting Durable Settlement Agreements

A successful mediation or arbitration session can fall apart after the handshake if the settlement agreement isn’t clear, complete, and enforceable. Crafting a durable settlement agreement is just as critical as reaching the resolution itself.



Here are a few key principles I emphasize to ensure the agreement holds up:

1. Avoid Vague Language
Ambiguity is the enemy of finality. Terms like “reasonable” or “as soon as possible” may feel cooperative in the moment but can lead to disputes later. Every critical point—payment dates, conditions, deliverables—should be specific and measurable.

2. Plan for Contingencies
What if a payment is late? What if a party files bankruptcy? What if a lien isn’t cleared? Durable agreements anticipate what could go wrong and include clearly defined responses. Think of this as preventative maintenance for resolution.

3. Address Confidentiality and Non-Disparagement
If confidentiality or public statements are part of the deal, spell them out. Courts won’t enforce vague understandings. Include what can and can’t be said, to whom, and with what consequences.

4. Consider Enforceability Jurisdiction
Will the agreement be filed with a court? Is it subject to arbitration enforcement rules? Consult with counsel on which forum and law will govern enforcement to avoid jurisdictional surprises.

5. Don’t Rush the Finish Line
After a long day of negotiation, parties may be tempted to sign a quick summary and fill in details later. I always encourage finishing a complete written agreement before adjourning—even if it means ordering dinner and staying late. Closure should be built to last.

A strong agreement makes the hard work of mediation or arbitration meaningful. With precision, foresight, and clarity, your resolution becomes not just an agreement—but a lasting one.