On July 1, 2022, Florida Rule of Civil Procedure 1.442(c), as amended by the Florida Supreme Court, went into effect. Specifically, the Court amended the rule to exclude most nonmonetary terms from proposals for settlement in an effort to “align” the procedural rule with the
substantive portion of Section 786.79, Florida Statute (2021).
One practical result of this amendment is that a valid proposal of settlement can no longer include a release or confidentiality agreement as a condition of the settlement. These non-monetary terms are often an important requirement for litigants where a significant sum of
money or sensitive business information is at issue.
Parties should continue to utilize proposals for settlement as a negotiating tool. However, a party seeking to obtain specific release language or confidentiality terms should consider how to monetize those conditions outside of the proposal for settlement.
You can read the Florida Supreme Court’s May 26, 2022 Opinion here