A Gallagher agreement is a legal arrangement that allows one codefendant in a lawsuit to settle with the plaintiff for a predetermined amount of money at any point during the trial. This type of agreement ensures that the codefendant will pay the agreed sum regardless of the trial's outcome, providing a level of financial certainty amidst ongoing litigation.
Gallagher agreements are commonly used in civil litigation, particularly in cases involving multiple defendants. They serve to facilitate settlements and can help reduce the uncertainty and potential financial burden on a codefendant. Users may find it beneficial to utilize legal templates available through US Legal Forms to draft Gallagher agreements or related documents, ensuring they adhere to relevant legal standards.
Here are a couple of examples of abatement:
(Hypothetical example) In a personal injury case involving three codefendants, one codefendant enters into a Gallagher agreement with the plaintiff. They agree to pay $50,000 to settle the claim, ensuring that they will pay this amount even if the trial results in a favorable verdict for them.
Examples of state differences (not exhaustive):
| State | Gallagher Agreement Variations |
|---|---|
| California | Commonly used in personal injury cases, with specific rules for enforceability. |
| New York | Gallagher agreements are recognized but may have different procedural requirements. |
| Texas | These agreements are less common, with alternative settlement practices preferred. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
If you are involved in a case with multiple defendants and are considering a Gallagher agreement, it is advisable to consult with a legal professional to understand the implications fully. Additionally, you can explore US Legal Forms for templates that can help you draft a Gallagher agreement tailored to your situation.
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A Gallagher agreement is a legal arrangement that allows one codefendant to settle with the plaintiff for a fixed amount during a trial.