Hawaii Settlement Agreement

Introduction

Key Things to Know

1. 1

   In Hawaii a settlement agreement resolves a dispute when one side pays consideration and the other signs a release of claims; because Hawaii has no Section 1542-style statute, that release is read by its own words, and once signed it is hard to undo, so review every term before signing.

2. 2

   A minor's compromise in Hawaii is valid only after a court approves it (Hawaii Revised Statutes Section 560:3-1102), and a settlement left unapproved can be voidable. Money due the child up to 10,000 dollars a year may pass to a custodian or the minor's account with no conservator (Section 560:5-104); anything larger runs through a conservatorship.

3. 3

   Hawaii draws a hard line around harassment silence: an employer may not use a nondisclosure agreement that stops an employee from disclosing or discussing sexual harassment or sexual assault in the workplace (Hawaii Revised Statutes Section 378-2.2). The settlement figure and other terms can still be shielded, but the employee's account of the harassment itself cannot be gagged.

4. 4

   No Hawaii statute parallels California Civil Code Section 1542, so a general release lives or dies on its language and the Parties' intent. A clause phrased to embrace all claims, known and unknown, springing from the dispute is generally enforced, so a release meant to shut the matter for good should call out unknown and unsuspected claims.

5. 5

   A no-admission-of-liability clause appears in most Hawaii settlements, confirming that the payment resolves a disputed claim and admits no fault. Hawaii treats it as routine and enforceable, and it is exactly what lets a Party settle a case while conceding no wrongdoing.

6. 6

   Hawaii holds a release to contract standards, so an exchange of value has to sit behind it. The settlement payment usually is that value, and mutual promises with mutual releases can be too. Lay out clearly what each side provides, because a release given for nothing back can fail for lack of consideration.

7. 7

   A Hawaii settlement is enforced as a contract. When a lawsuit is already pending, a Party may move the court to enforce the deal and enter judgment on its terms; a settlement that ended a non-litigated matter is enforced through a breach-of-contract action if the other side does not perform.

Hawaii Requirements for Settlement Agreement

• Release of Claims and Unknown-Claims Wording

  The release of claims is the heart of the settlement. Hawaii has no Civil Code Section 1542 analog, so no special statutory language is required; the release is construed by its wording and the parties' intent. To give up unknown or unsuspected claims, state expressly that the release covers claims known and unknown arising out of the dispute, and name every party who is released.

• Court Approval for a Minor's Settlement

  If a party is a minor, a compromise affecting the minor is valid only after the court approves it (Hawaii Revised Statutes Section 560:3-1102). Money due the minor up to 10,000 dollars a year may be transferred to a custodian or the minor's account without a conservator (Section 560:5-104); larger amounts are managed through a conservatorship. Plan for court approval of the compromise.

• Consideration Makes the Release Binding

  A release is a contract, so it needs consideration to bind. In Hawaii the settlement payment, or the parties' mutual promises and mutual releases, usually supplies it. State plainly what each side gives, because a release for nothing in return can fail for lack of consideration. Tie the release to the payment so the exchange is clear on the face of the agreement.

• Confidentiality and the Harassment Limit

  You can keep the settlement amount and other terms confidential in Hawaii. One limit applies: Hawaii Revised Statutes Section 378-2.2 bars an employer from entering into a nondisclosure agreement that prevents an employee from disclosing or discussing sexual harassment or sexual assault. Draft the confidentiality clause around that restriction rather than promising blanket secrecy in a harassment settlement.

• No Admission of Liability

  Include a no-admission-of-liability clause stating that the payment settles a disputed claim and is not an admission of fault by any party. This is standard and enforceable in Hawaii and lets a party resolve a matter without conceding wrongdoing. Pair it with the recital that the Agreement is a compromise of a disputed claim.

• Enforcing a Hawaii Settlement

  A Hawaii settlement is enforced as a contract. If the dispute is in pending litigation, a party can move the court to enforce the settlement and ask it to enter judgment on the agreed terms. A settlement reached outside a lawsuit is enforced by suing for breach. Say in the Agreement which path applies, and keep a signed writing so either route is straightforward.

• Identify the Parties and Recite the Dispute

  Name every party to be bound and released, including agents, employees, and successors where intended, and recite the dispute clearly (the claim, incident, or case number if a lawsuit is pending). A vague description of the dispute or a missing party is a common reason a release later fails to cover what the parties expected.

• Payment Terms and Hawaii Governing Law

  Set out the settlement amount, the due date or payment schedule, and how a missed payment is handled, then state that Hawaii law governs the Agreement. Consider a tax or wage allocation where the settlement resolves an employment or injury claim, since how a payment is characterized can affect its tax treatment. Confirm allocation with a tax professional before signing.