In most cases, no, a lawsuit cannot be reopened after a settlement has been reached and approved by the court. However, there are limited exceptions where it may be possible.
Once a legal settlement is finalized, it typically marks the end of the dispute between the parties involved. Settlements are designed to bring closure and prevent further litigation. However, under certain rare circumstances, a case may be reopened.
You can learn more by reaching out to a Kansas City personal injury lawyer for answers.
Understanding Legal Settlements
A legal settlement is an agreement reached between disputing parties, often before or during a trial, that resolves the case without continuing litigation. Settlements may involve compensation, specific actions, or both. They are often memorialized in a written agreement that is signed by all parties involved.
Once signed, and especially if approved by a judge, settlements are considered legally binding. Courts generally uphold settlements to promote certainty and finality in legal disputes. This discourages reopening cases, particularly when both parties have voluntarily agreed to the terms.
When Settlements Happen
Settlements can occur at virtually any stage of a legal dispute:
- Before a lawsuit is filed (through pre-litigation negotiations)
- During the lawsuit (often after discovery or during mediation)
- On the eve of a trial
- Even after a trial has started, if both sides decide to resolve the issue before a verdict is reached
Settling doesn’t necessarily mean one party admits fault. In many cases, parties settle to minimize financial risk, avoid negative publicity, or simply end a stressful and time-consuming process.
Exceptions that May Allow Reopening a Settled Lawsuit
While rare, there are several situations in which a lawsuit may be revisited even after a settlement has been finalized.
Fraud, Misrepresentation, or Coercion
If one party can prove that the settlement was obtained through fraud, misrepresentation, or coercion, a court may agree to reopen the case. This includes situations where critical information was intentionally hidden or distorted, leading one party to agree to terms they otherwise wouldn’t have.
Examples include:
- A party lying about assets or income during a divorce settlement
- Falsified medical records in a personal injury case
- Threats or undue pressure placed on a party to settle
Mutual Mistake
If both parties made a significant error about a fundamental fact during the settlement negotiations, the case may be reopened under the theory of mutual mistake. For instance, if both parties settled a case based on a mistaken belief about the extent of an injury or liability, they might be able to void the agreement.
Breach of Settlement Agreement
If one party fails to uphold their end of the settlement, the other party may go back to court. They cannot reopen the original lawsuit, but they can potentially enforce the agreement or seek additional remedies. In some cases, a breach may warrant reinstating the lawsuit or taking new legal action.
Lack of Legal Capacity
If a party lacked the legal ability to enter into a contract (for instance, due to mental incapacity or being a minor), the settlement may be invalidated. In that case, the lawsuit could possibly be reopened as well.
Contact our Kansas city personal injury lawyers now.
Reopening a Case: Civil vs. Criminal Law
Most discussions around reopening settled cases relate to civil lawsuits, such as personal injury, business disputes, or family law matters. The rules in civil law are more flexible than criminal law, but still strongly favor finality.
In criminal law, settlements typically come in the form of plea agreements. While rare, these, too, can be challenged under limited circumstances, particularly if constitutional rights were violated during the process.
Alternative Options When Reopening Isn’t Possible
If reopening a lawsuit isn’t legally viable due to finality rules or a strong release of claims, there may still be other avenues to resolve the situation or protect your rights, such as:
- Negotiation or mediation: If the other party is cooperative, you may be able to reach a new agreement outside of court. Mediation is often a low-cost, confidential way to address ongoing issues or misunderstandings related to the original settlement.
- Filing a new lawsuit: In rare cases, a new cause of action may arise from events following the original settlement. This is not the same as reopening the original case but rather pursuing a separate legal claim based on new conduct or violations.
- Filing a motion to enforce the settlement: If the issue is noncompliance rather than dissatisfaction with the original agreement, you may be able to go back to court to enforce the terms of the settlement. Courts can compel performance, award damages, or issue penalties for violations.
While reopening a case may not always be possible, these alternative options can still provide meaningful remedies and legal recourse. Speaking with an attorney can help you determine the best strategy for your unique situation.
Foster Wallace Can Help You Understand Settlements
So, can a lawsuit be reopened after settlement? While reopening a lawsuit after a settlement is extremely difficult, it’s not entirely impossible. If you believe that fraud, a mistake, or coercion played a role in your case—or if the other party breached the settlement—you may have options.
If you think you may have grounds to revisit a settlement or need guidance on enforcing an agreement, don’t wait—get a free consultation with the team at Foster Wallace. Our attorneys are here to use their 45 years of combined experience to help you understand your rights and pursue justice.
