A Mary Carter agreement is a type of settlement agreement often used in personal injury cases in Texas. In these agreements, one defendant will agree to pay a portion of the settlement amount, but their liability will be limited to that amount. This is called a „Carter“ settlement. The remaining defendants will then agree to pay the remaining settlement amount. This is called a „Mary“ settlement.
These agreements can be beneficial for both plaintiffs and defendants. For plaintiffs, they may receive a higher settlement amount than they would have if the defendants split the settlement equally. For defendants, they may limit their liability and potentially reduce their costs in the litigation process.
However, Mary Carter agreements can also be controversial and may raise ethical concerns. Some critics argue that these agreements can be used to unfairly influence a plaintiff`s decision to settle and can potentially create conflicts of interest between plaintiffs and their attorneys.
In Texas, Mary Carter agreements are legal, but there are certain requirements that must be met for them to be enforceable. For example, the agreement must be in writing and signed by all parties involved. Additionally, the agreement must be disclosed to the court and all parties involved in the litigation.
Overall, Mary Carter agreements are a complex and controversial area of personal injury law in Texas. It is important for both plaintiffs and defendants to understand their rights and responsibilities when entering into these types of agreements. As always, it is a good idea to consult with an experienced attorney who can provide guidance and advice on the best course of action.