Archives: Glossary

A written statement of facts sworn to before an officer authorized to administer oaths.

An agreement resolving a dispute without a final court decision on the merits. A settlement agreement is a contract and can be enforced like one. Some settlements need court approval — for example, class action settlements (Fed. R. Civ. P. 23(e)) and, under state law and local court rules, settlements of minors’ claims. Offers and statements made in settlement negotiations are generally not admissible to prove or disprove the validity or amount of a disputed claim (Fed. R. Evid. 408). In real estate, “settlement” also means the closing of a sale or loan.

A process in which a neutral third party helps the parties try to reach a settlement.

A process in which a neutral arbitrator decides a dispute outside court, usually under an agreement of the parties.

Claim preclusion: a final judgment on the merits generally bars the same parties from relitigating the same claim.

Issue preclusion: when an issue of fact or law is actually litigated and determined by a valid and final judgment, and the determination is essential to the judgment, it is generally conclusive in a later action between the parties, whether on the same or a different claim (Restatement (Second) of Judgments § 27). Federal courts also allow non-mutual use in some cases (Parklane Hosiery Co. v. Shore, 439 U.S. 322 (1979)). Compare res judicata, which bars relitigating a whole claim.

A legal arrangement in which a trustee holds property for the benefit of one or more beneficiaries under terms set by the settlor.

The person or institution that holds and manages trust property for the beneficiaries.

A person entitled to benefit from a trust, will or other arrangement.

A person who must act in another’s best interest, such as a trustee or agent.