Free Printable Abatement of Litigation Agreement Form (GENERIC)

This review list is intended to guide you about the subject of this document and to help you in its preparation. This is an agreement between the debtor and the creditor in which the debtor agrees to pay a portion of the claim against them in exchange for the litigation being postponed for an agreed period. This would not be necessary if the parties agreed to a one-time payment and dismissal. This is a strategy used when the debtor is unable to pay the full amount immediately but agrees to make a partial payment. The Plaintiff accepts this type of agreement to start the money flowing in their direction rather than continuing litigation.

Make numerous copies. Maintain detailed records of all payments to ensure that evidence can be used if the matter is brought back to court due to the debtor’s failure to make the promised payments on the schedule conformed to in the document.

In principle, if payments are readily available, the Plaintiff is frequently better off accepting delayed payments with additional interest than returning to court—after this document has been signed and some payouts by the debtor have been made.

Abatement of Litigation Agreement

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_____________________, referred to as PLAINTIFF, and _________________, referred to as DEBTOR, agree:
The parties are litigating a disputed matter in the __________________, case number
_________________.
The parties agree that the DEBTOR is indebted to the PLAINTIFF in the amount of $______(_______________________________ & ______/100 dollars).
DEBTOR shall pay this sum under the following conditions:
________________________________
The parties agree to abate the litigation under the following terms:
(a) the case shall not be dismissed for failure to prosecute during the term provided for payment;
(b) this agreement may be filed by either party if necessary to enforce this agreement;
(c) in the event that the DEBTOR fails to pay as is agreed, the PLAINTIFF shall be entitled to obtain a judgment for any remaining balance upon ex parte application, the DEBTOR specifically waiving notice of application for judgment and settlement of the form of judgment.
Either party may file this agreement before the Court.
This is the entire agreement between the parties and this agreement may only be amended by a writing executed by the parties hereto.
Dated: ______________________
________________________________
_____________________ By Debtor
________________________________
_________________ By Plaintiff

Frequently Asked Questions

What is an abatement of litigation agreement?

An abatement of litigation agreement is a contract between a plaintiff and a debtor in which they agree to pause a lawsuit while the debtor pays a specified sum. The agreement typically includes terms that prevent the case from being dismissed for failure to prosecute during the payment period. It may also allow either party to file the agreement with the court if enforcement becomes necessary.

What happens if the debtor fails to pay under an abatement of litigation agreement?

If the debtor fails to pay as agreed, the plaintiff is entitled to obtain a judgment for any remaining balance upon ex parte application. The debtor specifically waives notice of the application for judgment and settlement of the form of judgment. This means the plaintiff can seek a judgment without further notice to the debtor.

Can the lawsuit be dismissed while an abatement of litigation agreement is in effect?

No, the agreement typically states that the case shall not be dismissed for failure to prosecute during the term provided for payment. This ensures that the lawsuit remains pending while the debtor makes payments. If the debtor defaults, the plaintiff can enforce the agreement.

What is the purpose of an abatement of litigation agreement?

The purpose is to allow the debtor to pay a debt over time while the litigation is paused, avoiding the need for continued court proceedings. It provides a structured payment plan and protects the plaintiff's ability to obtain a judgment if the debtor defaults. It also prevents the case from being dismissed for lack of prosecution.

How is an abatement of litigation agreement enforced?

Either party may file the agreement before the court if necessary to enforce it. If the debtor fails to pay, the plaintiff can obtain a judgment for any remaining balance upon ex parte application. The debtor waives notice of the application for judgment and settlement of the form of judgment.

What are the key terms of an abatement of litigation agreement?

Key terms include the amount of the debt, the payment conditions, and the agreement to abate the litigation. The agreement also states that the case shall not be dismissed for failure to prosecute during the payment term. It may be filed by either party to enforce the agreement, and it includes a waiver of notice by the debtor for any judgment application.

Can an abatement of litigation agreement be amended?

The agreement states that it is the entire agreement between the parties and may only be amended by a writing executed by the parties. This means any changes must be in writing and signed by both parties. Oral modifications are not permitted.

What happens to the lawsuit if the debtor pays in full?

The agreement does not specify what happens upon full payment, but typically the litigation would be dismissed or concluded. The agreement focuses on the abatement period and the consequences of default. If the debtor pays as agreed, the plaintiff would likely dismiss the case or file a satisfaction of judgment.

Is an abatement of litigation agreement the same as a settlement?

No, an abatement of litigation agreement is not a settlement; it is an agreement to pause the litigation while the debtor pays. The underlying dispute is not resolved until the debt is paid or a judgment is entered. The agreement allows the plaintiff to obtain a judgment if the debtor defaults.

What should be included in an abatement of litigation agreement?

The agreement should include the parties' names, the court and case number, the amount of the debt, and the payment conditions. It should also include the terms of abatement, such as the non-dismissal for failure to prosecute and the enforcement provisions. The agreement should be dated and signed by both parties.