Pierringer Agreement Definition: Everything You Need to Know
Pierringer Agreement is a term used in legal circles, referring to an agreement reached between a plaintiff (injured party or their legal representatives) and one or more of the defendants in a multi-defendant lawsuit. This agreement allows the parties involved to settle their differences without having to go to trial, and without the final judgment being entered against all the remaining defendants.
The Pierringer Agreement was first introduced in the United States in 1960, in a case involving a truck accident. Since then, it has become a popular option for resolving complex litigation cases involving multiple parties.
What is the Purpose of a Pierringer Agreement?
The main purpose of a Pierringer Agreement is to resolve disputes between parties involved in complex litigation cases without having to go through a lengthy trial process. This agreement allows the plaintiff and one or more defendants to reach a settlement agreement, while the remaining defendants continue with the proceedings.
The Pierringer Agreement can be beneficial for both the plaintiff and the defendants. For the plaintiff, it can lead to a faster resolution of the case, resulting in quicker compensation for their injuries. For the defendants, it can mitigate the risk of a large judgment being entered against all the defendants, which could have a significant financial impact on their businesses or personal finances.
How Does a Pierringer Agreement Work?
In a Pierringer Agreement, the plaintiff agrees to dismiss their claims against one or more defendants in exchange for a settlement amount. The dismissed defendant also agrees to contribute a certain amount of money towards the settlement. The remaining defendants will continue with the proceedings with the understanding that the judgment entered against them will not include the dismissed parties.
For example, if a plaintiff sues three defendants for a personal injury case and reaches a Pierringer Agreement with one of the defendants, the plaintiff will dismiss their claims against that defendant in exchange for a settlement amount. The dismissed defendant will then contribute their share of the settlement amount, and the other two defendants will continue with the proceedings. If the remaining defendants are found liable, the judgment entered against them will not include the dismissed defendant.
The Pierringer Agreement is a voluntary agreement between the parties involved, and it does not affect the rights of the plaintiff to pursue their claims against the remaining defendants.
Conclusion
In summary, a Pierringer Agreement is a legal agreement between a plaintiff and one or more defendants in a multi-defendant lawsuit. It allows the parties to settle their differences without having to go to trial, and without the final judgment being entered against all the remaining defendants. The Pierringer Agreement can be beneficial for both plaintiffs and defendants, as it can lead to a faster resolution of the case and mitigate the financial risk of a large judgment being entered against all the defendants.