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September 9, 2021

Agreement Not To Sue Clause

Filed under: Uncategorized — Chris Chaten @ 6:27 PM

The Covenant Not Sue clause of a declassification states that the releasing party will not sue the dismissed party against claims covered by the agreement. Among the many seemingly amphigetic provisions contained in a standard settlement and release agreement are both an authorization and a separate obligation not to take legal action. Why can one ask if you need a promise from the liberating party not to sue you for the liberated demands, when the liberation itself is clear and unequivocal to release those demands? Well, it turns out there`s a reason, and a recent New Hampshire Supreme Court decision, Pro Done, Inc. v. Basham, no. 2018-0060, 2019 WL 1967686 (N.H. May 3, 2019) illustrates the benefits of an independent obligation not to prosecute in addition to one publication. But to appreciate the current usefulness of a separate alliance, not to complain about the historical reason for its use, rather than as a complement to a publication, a little substance in some old common law principles is necessary. However, since the original purpose of a non-recourse agreement was to effectively exempt the establishment obligation from the obligation without dismissing the co-obligated parties, many courts have treated an obligation not to bring legal action, as if it were an exemption from the obligation for establishment (with a reservation of rights in respect of non-debtors) and not a future promise, Do not take legal action. In other words, an alliance, not complaining, was like a liberation as a “primary function.

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