Terminating the Employment Relationship

specific obligations to each other, but also broadly addresses all scenarios that may later lead to a dispute. Because the p arties’ intent can play a critical role in interpretation of an agreement, it is essential that an agreement be written in a manner that clearly expresses the parties’ intent.

A. P RELIMINARY I SSUES

1. P REAMBLE

The Preamble defines the parties who will be executing the agreement. For example, it may state,

This Settlement Agreement and Release of All Claims (hereinafter referred to as "Agreement") is made and entered into by and between John Jones (hereinafter "Jones") and the City of Fiction (hereinaf ter “City”) (and hereinafter collectively the “Parties”) .

The parties listed in the Preamble need to be signatories to the agreement. These are the parties to whom the agreement applies and who must perform obligations under the agreement. If an agreement is for a specified term, the parties may specify the term of the agreement in the Preamble. 2. R ECITALS Recitals are typically listed immediately after the preamble and contain background information intended to aid someone who is trying to understand or interpret the agreement. The Recitals should identify the issue or matter being resolved. For instance, if the agreement is to resolve a disciplinary dispute, the Recitals should generally explain the discipline at issue (e.g., “On [date], the City iss ued a Final Notice to terminate Jones’ employment as a police officer. On [date], Jones appealed the Final Notice.”). If the agreement is intended to resolve a lawsuit, the Recitals should specifically reference the case. The following is an example: 1. Jones has an action pending against the City in Fresno County Superior Court, known as John Jones v. City of Fiction, and Does 1 through 10 , designated Case No. S-1234-CV 1234567 (hereinafter referred to as "Civil Action"); 2. In the Civil Action, Jones claims that she has suffered financial loss and other damage, including lost earnings and benefits, and emotional distress; 3. The City denies that it has any liability toward Jones, but has been forced or may be forced to incur significant fees and costs as a resu lt of Jones’ lawsuit; therefore, it wishes to avoid incurring any additional litigation expenses; 4. This Agreement is intended to be a full, complete, and final settlement of each and every claim, cause of action, or liability, whether known or unknown, which Jones may have or may have had, against the City, any and all of its current and former employees, agents, representatives, successors, assigns, managers, officers, Council members, attorneys, and any other person acting by, through, or

Terminating the Employment Relationship ©2022 (s) Liebert Cassidy Whitmore 96