Agreements Not To Sue


Recently, an OB/GYN practice began in New Jersey, as their potential patients must sign agreements requiring mandatory arbitration for litigation. The agreements, sometimes referred to as no Sue Agreements, also required patients to waive their jury rights and imposed a cap of $250,000 for non-economic damages (i.e. pain and suffering). Such agreements are supported by the Fruit Risk Retention Group and Gynecologists (OGRRGA), an insurance company based in Montana. According to the Michigan Lawyers Weekly, OGRRGA says it will reduce the premiums of its OB/GYN policyholders by 50 percent if they ask their patients to sign No Sue Agreements. However, states have the power to regulate the general fairness and functioning of the arbitration process and may impose specific requirements that may affect the applicability of No Sue conventions from one state to another. For example, California has a $250,000 damages cap, which limits the effect of binding arbitration, and California law requires “legal termination forms” that explain to patients no Sue Agreements. New Jersey, on the other hand, is not subject to such a duty of termination, which may cause the New Jersey courts to view these agreements differently in terms of enforceable force. An alliance, not to be appealed, was initially conceived as a means of avoiding the harshness of a general legal doctrine that an exemption does not only release the obligation of the housing debtor itself. Therefore, if you have settled a right with one of several joint debtors and granted discharge to that debtor, you have effectively released the full obligation and your right to sue the other complicit debtors for the remainder of the obligation not paid by the debtor of the facility.

But if, instead of granting permission to the colonist, you have entered into a contract with that debtor in which you have agreed not to sue the debtor of the facility on the undertaking, avoid the rule that treats a discharge as the execution of the total undertaking. Over time, the harshness of this common law rule vis-à-vis the liberating part has developed in most (but not all) states, but the payment of common debtors should always be prudent when it comes to filing a complaint with a liberating party who intends to pursue the rights against debtors who do not default, as these other debtors may have dues and compensation rights against the debtor. [2] However, after the term concluded Confederation, not because of the specific purpose of confrontation with a hard common law rule with common commitments, the concept began to find its way into liberation and transaction agreements in general, not as a substitute for a release (initial purpose), but in addition to a release and in circumstances that do not involve common commitments. Before asking patients to sign no sue agreements, physicians should consult with their professional liability insurer to determine if they are in favour of the use of such agreements and consult with a lawyer to determine whether the agreements are applicable in the jurisdiction in which the physician practices; And if so, under what circumstances. Similarly, the manner in which the No Sue agreements were developed and presented to patients led national courts, in different legal systems, to terminate or reject these agreements;