Settlement Documentation Checklist

Cross-check each party's legal name, capacity (individually, as trustee, d/b/a, corporate officer), and address against the engagement letter, complaint caption, and PMS contact record. A misnamed releasor is the most common reason a release later fails to bar a re-filed claim.

Pull the case caption from PACER/CM-ECF or the state e-filing portal (NYSCEF, Texas eFile, etc.) and match it verbatim — case number, division, judge. A typo in the caption can render the dismissal stipulation unfileable.

Identify Medicare/Medicaid (MSP), ERISA health-plan, workers' comp, child support, and attorney charging liens on the recovery. Unresolved Medicare conditional payments expose the firm and client to MSP liability — get the final demand letter before disbursement.

Record the gross figure exactly as agreed — before contingency fee, costs, and lien deductions. Reconcile against the demand/offer email thread or mediator's term sheet so there is no later dispute about whether the number was inclusive of fees.

Specify lump-sum vs. structured installments, funding source (carrier, defendant, escrow), payee name on the check, delivery method (wire, check), and the funding deadline (typically 30 days after fully-executed agreement). Include default interest if the deadline is missed.

Carve out disclosures to spouse, accountants, tax preparers, and as required by law or court order. For employment matters, confirm the clause complies with the federal Speak Out Act and any state-level ban on NDAs covering harassment claims.

Allocate proceeds among physical injury (excludable under IRC § 104(a)(2)), lost wages (W-2 reportable), emotional distress, and attorney fees. Confirm whether the carrier will issue a 1099-MISC to client, attorney, or both. Misallocation is a frequent client complaint at year-end.

List every party giving and receiving the release, including spouses, heirs, successors, assigns, parent/subsidiary entities, officers, directors, employees, and insurers. A release that names only the corporate defendant leaves individual officers exposed to a re-filed claim.

State whether the release is limited to claims pleaded in the case or extends to all claims known and unknown through the effective date. For California matters include a Civil Code § 1542 waiver; for ADEA matters in employment, include the OWBPA 21/45-day consideration and 7-day revocation language.

Reserve indemnification rights, vested benefits, workers' comp claims, EEOC charge-filing rights, and any unrelated pending matters. Anything not carved out is presumed released — this is where missed reservations become malpractice claims.

Minor compromises, wrongful death, class actions (Rule 23(e)), FLSA collective actions, and ERISA-class settlements require judicial approval. Probate, bankruptcy trustee, and guardian ad litem approvals may also be needed. Identify the approval vehicle before drafting the dismissal papers.

Prepare the motion, proposed order, supporting declarations, and notice to absent class members or interested parties. Check the judge's standing order for page limits and chambers copies. E-file via CM/ECF or the state portal at least 4 hours before the midnight cutoff — courts treat 12:01 a.m. filings as next-day.

Section 111 of the MMSEA requires Responsible Reporting Entities to report settlements involving Medicare beneficiaries. Confirm whether a Medicare Set-Aside (MSA) is needed for future medicals, and obtain CMS final demand on conditional payments before disbursement.

Send via DocuSign, Adobe Sign, or Clio's e-sign integration. Set the signing order so the client signs before defendants. Confirm notarization is captured if required by the jurisdiction (some states require notarization for releases involving real property or minors).

Verify every signature page is present, dated, and matches the named parties. Save the certificate of completion from the e-signature platform alongside the executed PDF in NetDocuments / iManage / Clio Documents.

File the Rule 41(a)(1)(A)(ii) joint stipulation (federal) or state equivalent. Confirm whether dismissal is with prejudice and whether the court is to retain jurisdiction to enforce the agreement under Kokkonen — without that retention clause, enforcement requires a new breach-of-contract suit.

Deposit the settlement check directly into the firm's IOLTA — never into operating. Record the deposit against the client's individual ledger under Rule 1.15. Wait for funds to clear (typically 7-10 banking days) before any disbursement; an IOLTA overdraft triggers automatic referral to disciplinary counsel in most states.

Pay Medicare/Medicaid, ERISA, and provider liens from IOLTA based on the final demand letters obtained earlier. Retain the satisfaction-of-lien letters in the matter file. Disbursing to the client before lien resolution is the most common Rule 1.15 violation in PI practice.

Provide an itemized statement showing gross recovery, contingency fee, advanced costs (filing fees, expert fees, transcripts), each lien paid, and the net to client. Client signs the statement before the net check is released — this is the firm's record that the client agreed to the math.

Mark the matter closed in Clio/MyCase/Filevine, return original documents to the client, and set the destruction date per the firm's retention schedule (commonly 7 years post-close; longer for matters involving minors). Send the closing letter confirming the engagement has ended.