What Exactly is a Dog Bite Settlement Agreement?
A dog bite settlement agreement is a legally binding contract reached between a dog bite victim and a dog owner’s insurance company. Its purpose is to resolve a dog bite injury claim outside of court by offering compensation in exchange for the victim’s waiver of his or her right to pursue litigation against the responsible parties (e.g., the dog owner, the dog owner’s homeowners insurance company).
For this reason, the signing of a dog bite settlement agreement may also be referred to as "settling" a dog bite injury claim. However, it is important to clarify that a dog bite settlement agreement is not an upfront payment disbursed to the victim to cover current and future medical treatment costs as well as other damages (e . g., lost wages, pain and suffering). A dog bite settlement agreement represents an agreement in principle to indemnify, or compensate, the victim – but it is not a guarantee that payment will be made.
Most often, dog bite settlement agreements are signed pursuant to the laws of the state in which the incident occurred. However, because each state has its own statute of limitations (which defines how long after an incident a lawsuit can be filed), victims must be sure to enter into a dog bite settlement agreement well before the statute of limitations has expired. Otherwise, the agreement may be considered invalid in certain jurisdictions.
Key Components of a Dog Bite Settlement Agreement
The key elements of a dog bite settlement agreement include the following:
Agreement and Release
States that the agreement is intended to be a full and final settlement of all claims between the parties regarding the dog bite under discussion. It is important that the defendant (the owner of the dog) give up their right to defend themselves in the future and agree that the case is over. This is done by their signing an agreement and release where the defendant agrees to "release and hold harmless" the plaintiff from any future claims for damages related to that dog bite incident.
Terms and Conditions of Settlement
States the release granted by the plaintiff. States any promises that are made to the defendant regarding a "closed claim." It may address treatment that the defendant must provide to the plaintiff, such as therapy, surgery, or counseling. It typically has a quiet period during which neither party will contact the other. It may have an attorney fee payment provision that states that each party in the future will pay their own attorneys’ fees for any further disputes.
Confidentiality Provisions
Protects the terms of the settlement and payment amount from public review. This protects the defendant from having their insurance rates increased due to the dog bite incident, which may have occurred lawfully but is nonetheless difficult to explain to an insurance company. It also protects the defendant from any public relations fallout, such as a viral video of the dog attack posted to YouTube.
Steps to Creating a Dog Bite Settlement Agreement
There are a few steps that you want to take in order to draft this type of dog bite settlement agreement:
1. The party will first provide evidence to prove the dog bite. You will want to collect your evidence together and take a look at it when you are negotiating a settlement.
2. The important legal principles that you need to keep in mind are strict liability and negligence.
Strict liability means that the owner is liable for damages no matter what. In other words, the victim does not have to prove that the owner of the dog was negligent. If the dog bit you, you can still recover monetary damages in a court of law.
Negligence requires that you prove that the owner of the dog was negligent. The owner must not have used care. Carefully think over everything you plan on saying before you testify in court.
3. The parties will negotiate, practice, and come to an agreement.
4. Make sure the settlement agreement is signed by both parties.
Pitfalls of Dog Bite Settlement Negotiations
Negotiating a dog bite settlement agreement can be a complex procedure because all parties must agree on numerous key points. A failure to agree on any major issue can substantially delay the process, and the parties should work together with their attorney to quickly reach an agreement on all points of contention. Some common challenges that might arise during dog bite settlement negotiations include:
Liability
A major point of contention that often breaks down settlement negotiations is whether the defendant is liable for damages related to the incident. Determining liability in a dog bite case is not always straightforward, especially in comparative negligence situations where an injured person is partly at fault for the accident. In these scenarios, the parties and their attorneys must evaluate the circumstances that caused the accident and the degree to which the plaintiff’s actions contributed to it.
Fair value for the injuries
Even if both parties agree on liability, determining the fair value of the injuries can also be challenging. When evaluating damages from a dog bite, the plaintiff must look at all of the potential short-term and long-term consequences of the incident . These could include medical bills, lost wages and income, pain and suffering, scars, disfigurement, embarrassment, emotional trauma, damage to personal property and more. When estimating fair damages, parties must consider how their decision will impact the plaintiff for the rest of his or her life. Any uncertainties about future medical expenses or other forms of compensation could lead to major disagreements on this point. This is another area in which mediation can be beneficial, as having outside help to review the plaintiff’s medical and financial prognosis could provide valuable insight.
Insurance company requirements
There are different rules that apply to how and when insurers must pay out policies, both legally and in the context of the particular settlement agreement. Make sure you clearly outline when and how payments will be issued so that no disputes arise over payment dates. Additionally, many insurance companies require prior approvals before further medical treatment can be covered by the policy. If any such requirements exist and are not allowed for in the settlement agreement, they could cause complications down the line.
Sample Clauses of a Dog Bite Settlement Agreement
These clauses are simply sample clauses and vary by case.
CLAUSE: Liability: The parties do hereby agree that there are no claims being made against each other, either jointly or severally, for any claim of liability arising in connection with the July 4, 2013, incident. The parties do hereby further agree that the Plaintiff is the sole Pet Owner of the dog involved in the incident and further agree that the Plaintiff alone is liable in connection with the incident for any damages arising therefrom.
CLAUSE: Settlement Amount: The parties agree that that the Defendant shall pay the sum of Five Thousand dollars ($5,000.00), in settlement of the Plaintiff’s claim for property damage and personal injuries arising out of the subject incident, as follows:
The sum of One Thousand dollars ($1,000.00) to be paid on or before _____________, 2014;
The sum of Four Thousand dollars ($4,000.00) to be paid in twelve (12) equal monthly payments of Three Hundred and Twenty Two dollars and 06 cents ($322.06), due on or before the last day of each calendar month, with the first payment due and payable on the ____________ day of ___________, 2014 and the last payment due and payable on the ___________ day of ___________, 2015.
CLAUSE: Releases: In reliance upon the mutual promises and covenants contained herein, the parties do hereby release and forever discharge each other and his/her the respective heirs, beneficiaries, administrators, executors, successors, assigns, affiliates, parents, subsidiaries, agents, volunteers, servants and representatives from any and all actions, causes of action, complaints, cross-claims, counterclaims, claims, demands, debts, suits at law or in equity, and any claims for contribution or indemnification, including agencies such as the Humane Society, in whatever form or nature, which either of the parties currently have or may have hereafter against each other, known or unknown, suspected or unsuspected, fixed or contingent, which arose or may arise in the future from or in any way relate to the subject incident. This "general release" shall extend to any future injuries or damages resulting from the subject incident.
Legal Parameters and Final Agreement
It goes without saying that one of the key considerations in finalizing a dog bite settlement agreement is ensuring both you and the defendant’s insurance company have your bases covered legally. A few of the basics that have to be considered are receipt of the defendant’s full name, address, phone number, and a signed release for the workman’s compensation insurance carrier to directly pay the plaintiff the settlement amount.
Then we need to make sure the plaintiff has signed a full and final release and settlement agreement, signed receipt, signed warrant of attorney to confession of judgment and a satisfaction of judgment. It is also very important the language in the release is specifically tailored to your needs and is not boilerplate language .
The release and settlement agreement should reflect the specific dollar amount you are agreeing to accept, and a description of the injuries you are releasing in addition to the name of the dog owner, and the precise year the dog bit you. The receipt should reflect the amount received and the date of payment. A warrant of attorney to confess judgment gives permission to the defendant to enter judgment against you if you were to default in the future on any of their payments to you (if you are accepting payments in lieu of a lump sum settlement). And a satisfaction of judgment is what you would file in the eventuality that the defendant pays you the full amount of the judgment together with the interest and costs.
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