Covenant not to sue

Also found in: Acronyms.

COVENANT NOT TO SUE. This is a covenant entered into by a party who had a cause of action at the time of making it, and by which he agrees not to sue the party liable to such action.
     2. Covenants of this nature, are either covenants perpetual not to sue, or covenants not to sue for a limited time; for example, seven years.
     3.-1. Covenants perpetual not to sue. These will be considered with regard to their effect as relates, 1. To the covenantee; 2. To his partners or co-debtors.
     4.-1. A covenant not to sue the covenantee at all, has the effect of a release to him, and may be pleaded as such to avoid a circuity of action. Cro. Eliz. 623; 1 T. R. 446; 8 T. R. 486; 1 Ld. Raym 688; S. C. Holt, 178; 2 Salk. 575; 3 Salk. 298; 12 Mod. 415, 548; 7 Mass. 153, 265; 16 Mass. 24; 17 Mass. 623. And see 11 Serg. & Rawle, 149.
     5.-2. Where the covenantee is jointly and severally bound with another to the covenantor, a covenant not to sue him will be no protection to the other who may be sued on his several obligations and such a covenant does not mount to a release to him. 2 Salk. 575; S. C. 12 Mod. 551; 8 T. R. 168; 6 Munf. 6; 1 Com. 139; 4 Greenl. 421; 2 Dana, 107; 17 Mass. 623, 628; 16 Mass. 24; 8 Mass. 480. A covenant not to sue, entered into by only one of several partners, cannot be set up as a release in an action by all the partners. 3 P. & D. 149.
     6.-2. Covenant not to sue for a limited time. Such a covenant does not operate as a release, nor can it be pleaded as such, but is a covenant only for a breach of which the obliger may bring his action. Carth. 63; 1 Show. 46; Comb 123, 4; 2 Salk. 573; 6 Wend. 471.

A Law Dictionary, Adapted to the Constitution and Laws of the United States. By John Bouvier. Published 1856.
References in periodicals archive ?
Digital Ally has granted WatchGuard a perpetual covenant not to sue if WatchGuard's products incorporate agreed-upon modified recording functionality.
In return, the provincial boards each agreed to release EnPro, any of its affiliates and the settlement trust to be established under the Joint Plan from any present or future liability of asbestos-related claims by the boards and to provide a covenant not to sue EnPro, any of its affiliates or the settlement trust regarding any such claims, among other protections.
If the parties can't reach consensus on indemnities, they may use a simple release and covenant not to sue. The release should prevent the releasing party from pursuing a claim against the released party, but will not necessarily protect the released party from statutory liability or third-party claims.
The settlement agreement grants Endo a non-exclusive patent license in the United States, and a covenant not to sue outside the United States, for the currently marketed form of OPANA ER.
Under the terms of the agreement, Depomed is providing Grunenthal with a limited covenant not to sue under certain Depomed Acuform drug delivery patents with specific drug substances as well as USD25m in cash.
1 sends demand letters requiring the payment of $40,000 each in exchange for a covenant not to sue. Recognizing that $40,000 is hardly enough money to pay a law firm to investigate the allegations, most of the startups reluctantly pay, adding legitimacy to Troll No.
The covenant not to sue extends to service providers and customers of WisdomTree in connection with WisdomTree's products and services.
The covenant not to sue protects the property's owner or operator and future owners from being legally responsible to the State of Ohio for further investigation and cleanup, so long as the property is used and maintained in the same manner as when the covenant was issued, agency spokesman Mike Settles reports.
He acknowledged signing a release that cited warnings and risks of exposure to a taser and a covenant not to sue and a hold harmless clause.
Furthermore, the American Natl Bank & Trust Co rule "'stands regardless of whether the plaintiff's covenant not to sue the agent expressly reserves the plaintiff's right to seek recovery from the principal.'" Gibbs at *6, quoting Gilbert v Sycamore Mun Hosp, 156 Ill 2d 3511, 528, 622 NE2d 788, 797 (1993).
Although Isola will not grant a license for a US patent to ITEQ, Isola did grant ITEQ a covenant not to sue, provided ITEQ's chemical formulations conform to specific confidential restrictions.

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