Can I Sue After Signing a Settlement Paper?

Civil suits are tried in the civil courts.

It's not unusual to regret signing a settlement paper instead of suing someone and getting your day in court. You may start to wonder if you got everything you could have, or if you left money on the table. A settlement agreement can leave you thinking, is that all there is?

Significance

When you sign a settlement agreement, you waive your right to sue about the subject of the settlement. If you settle a car accident claim, you give up your right to sue the other driver. If you settle a discrimination claim, you give up your right to sue your employer. Generally speaking, a waiver is a contract that you cannot break, so you cannot sue after signing a settlement paper. There are, however, some exceptions to the general rule.

Employment Discrimination

A company has a unique opportunity to take advantage of an employee who is getting fired. Typically, a company will offer a severance package of cash and benefits based on the employee's tenure with the company. To accept the package, the employee must sign a settlement paper; that is, the employee must give up her right to sue the company. This type of settlement paper is valid as long as the employee understands the rights she is giving up and voluntarily agrees to give them up. Otherwise, a judge can rule that the waiver was invalid, and the employee can sue her former employer.

Fraud

Another circumstance in which you can sue after signing a settlement paper is if the party you want to sue lied to you to get you to sign the settlement agreement. This practice, called "fraudulent inducement," can invalidate a settlement agreement, because you would not have signed the agreement but for the lie.

Tips

The best source of advice about your particular circumstances is an attorney. If you are thinking about signing a settlement paper or have already signed a settlement agreement, you should contact a lawyer for specific advice about your situation.

References

• EEOC: Understanding Waivers of Discrimination Claims in Employee Severance Agreements
• Fibrogen v. Cellex-C International, Inc., 5th Circuit Court of Appeals N o. 04-10417 (2005)