Legal Question in Personal Injury in California
settlement payment
I have entered into a settlement with an individual who suffered a personal injury. This person is not a U.S. citizen but is a citizen of Mexico. When a settlement is reached with this person and payment is to be made, are there any laws which dictate whether payment can be made in the currency of their home country vs. the U.S.? If so, please advise what law controls that situation/issue and what affect, if any, it might have with the actual payout value, i.e. conversion of currency. Thank you very much.
2 Answers from Attorneys
Re: settlement payment
The agreement controls. If the agreement is silent, you live in CA, and the person lives in CA, the obvious currency is the U.S. dollar. If the agreement was entered into in California, the payment is in U.S. dollars. You and the other person can still agree on method of payment, conversion, and the effective date of the currency conversion -- all at once, periodically, etc., and what standard to use for conversion.
Re: settlement payment
Your settlement agreement should specify in which currency the payments must be made. Even if there is no specific language about this, the agreement must state how much you owe; if this amount is stated in dollars you must pay dollars, if it is in pesos you must pay pesos. Chances are there will be no ambiguity.
My answer presumes that you will make this agreement in the U.S. in order to settle a case in an American court, and that it will be governed by California law. If for some reason Mexican law governs your settlement you will need to consult a Mexican attorney.
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