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Thanks so much. If I can, I would like to ask you another

Thanks so much. If...
Thanks so much. If I can, I would like to ask you another question relating to the same settlement agreement. This next clause has me more concerned than the rest. Basically, the details of the case are as follows: Party A moved property across the country. Party B was the mover. Party B lost most of the property. Party A sued Party B. This is a settlement of the issue. My concern is that Party B is inserting this following clause because they may know of someone who is claiming they own part of the property Party A claims to have owned, and thus, will try to divert legal responsibility of those pieces of property to Party A. (Let me know if this does not make sense). Basically, I am trying to figure out what Party B is trying to do by inserting this clause into the settlement ...

"Liens. All claims, if any, for attorneys' and/or insurance liens are included in this settlement Party A warrant and represent that they have not assigned or transferred or purported to assign or transfer to any person or entity, any claim or cause of action arising out of the incident, casualty or event hereinabove referenced. If the payment referenced above shall be apportioned by the Party A among any individuals, companies, agencies, political subdivisions, insurers or attorneys (“such parties”) who may have valid liens or rights of subrogation or reimbursement, Party A agree to indemnify the released parties from and against all such claims by such parties, including payment of attorneys’ fees and costs. Party A further warrant and represent that they are the sole owners of all household goods and property moved under Contract No. #### XXXXX if any other person or party claims ownership interest in any of the property or settlement proceeds, the undersigned will be fully and solely responsible for making any other such party whole. In the event any other person or party seeks recompense from the released parties, then the undersigned will fully indemnify the released parties and will be liable for all costs and fees, and any judgment, arising from any claim or law suit. Party A understand and agree that the released parties are under no obligation to make any further payment to any other party for any reason arising from the move at issue
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Answered in 6 minutes by:
9/30/2013
Dimitry K., Esq.
Category: Legal
Satisfied Customers: 41,221
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
Verified

Thank you for your question. Please permit me to assist you with your concerns.

To answer directly, that clause is really all about ensuring that Party A does not sell or transfer its interest to someone else. That is really what the liens are all about, by inserting this clause, Party B wants to ensure that they will contract only with A and not someone else. That is because if a third party buys up the interest or has a lien against the winnings, they may not be similarly bound by this settlement agreement, which may therefore void the terms or allow a third party to pursue B for other reasons under the agreement. That is really why the clause is being inserted, t ensure that the agreement would be binding against A and only A once signed, and that no third party can come in and later claim some sort of interest in this agreement.

Hope that helps.

Dimitry K., Esq.
Category: Legal
Satisfied Customers: 41,221
Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
Verified
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Dimitry K., Esq.
Dimitry K., Esq.
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Experience: Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.

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