SETTLEMENT AGREEMENTS AND PROBATE LAWSUITS: a lesson from a Florida appeals court for beneficiaries of Florida estates

Are you in the middle of a Florida probate dispute?

Is your probate lawyer speaking to you about settling your lawsuit?

If so, you will probably be asked to sign a settlement agreement. In Florida, probate lawsuits which settle, or don’t go to trial, are often resolved by the parties signing a contract called a settlement agreement. A very recent case from a Florida appellate court provides a good lesson for heirs and beneficiaries of Florida estates who may be thinking about signing a settlement agreement.

First of all, never sign something that you don’t want to sign. If you don’t want to settle the case, don’t sign a settlement agreement. If you’re in the middle of a probate dispute in Florida, probate courts accept or reject proposed settlements, and settlement agreements, just about every day. Don’t be a party to a settlement agreement for a Florida estate unless you absolutely want to settle.

Second, understand what you sign. Have your Florida probate lawyer explain each and every page, paragraph, sentence, and word to you. Understand what you’re settling, or what you may not be settling. Understand how all the parts fit together and what this means for you.

Third, understand if you’re leaving any disputes on the table. In Florida, probate litigation is very common. Residents of Florida who die may have a will, a revocable trust, bank accounts or life insurance proceeds which go to someone else. A beneficiary of an estate, may need to sue about the dead person’s trust. Or, for example a beneficiary of a trust, or an estate, may have no problem with the estate or the trust, but may be suing over one single asset such as a bank account, or an annuity, or piece of real property. Ask your probate lawyer: “Are there any issues that I’m not settling by signing this settlement agreement?”

Fourth, do you have a “global settlement?” Probate lawyers, and probate trial attorneys, who have clients who want to settle everything, and I mean everything, will have a settlement agreement which is sometimes referred to as “global settlement.” This means that all the parties who signed this agreement are settling everything, from the beginning of the world through that moment they sign that settlement agreement. You need to know if you have a global settlement or not. If you do not have a global settlement, then ask your estate attorney, or your trust attorney where do you go from here after you sign the settlement agreement.

Finally, recognize that signing a settlement has serious implications. It means that what you have agreed to settle is over. The legal issues, the facts, they almost don’t matter anymore. What matters is the fact that you have settled the case, you settled your probate lawsuit, according to the terms of the written settlement agreement. Don’t think that you can settle something on a Monday, and sign a settlement agreement, and then on a Tuesday or Wednesday try to change the deal. Settlement agreements are serious business. A court’s review of the settlement agreement is, initially, very limited. Most courts look at the settlement agreement and determine what the parties to the settlement agreement are supposed to do by reading the plain meaning of the written settlement agreement. A court might not hear any testimony or evidence which might explain the plain meaning of the words in the settlement agreement. Specifically, recognize that you only settle what the plain meaning of the settlement agreement says.

So, what’s the “take away” from this recent Florida appellate court case, which, by the way, is not a probate case, but is a settlement agreement case? If you want a global settlement, go ahead and say that and make sure the each of the parties are settling all issues and matters. That is not your intent, and you only want to settle a few issues, or very limited matter, spell it out.

In the end, probate lawsuits, and estate lawsuits, as well as trust disputes, should only resolve those issues which the parties agree to resolve. Want a copy of this recent Florida case and the appellate court’s opinion? Email Michelle@Pankauskilawfirm.com. Advocate hard. Litigate smart.