Understanding Rule 11 Agreements in Texas

Civilians in non-legal industries can often feel at a loss when confronted with the sometimes-language-challenging world of lawyering and legalese. Bringing one’s own expertise into play can be beneficial, however, when they are able to recognize how legal agreements, disputes and settlements can impact them and their businesses as opposed to simply turning to the “experts” for guidance. One potential area of Texas legalese that industry executives and managers in the industrial supplies space may come across is what is known as a Rule 11 Agreement. A Rule 11 agreement is a type of legal agreement that is used in the state of Texas when parties are involved in a case before filing a trial court. In essence, it is an agreement made between opposing parties that was either settled out of court only via an official written document or introduced into evidence rather than appearing in a batch of items and all references are illustrated therein.

Why would someone in the industrial supply industry be concerned with such a legal construct? A Rule 11 agreement-which can, by the way, be a settlement on a particular point or an outsider’s qualitative research-has the power to authenticate documents in a court setting based on the signed declarations-or even, for instance, a simple exchange of emails. This means that if tested in court, the court would regard these documents as if they were part of a contract and thus admissible.

The industrial supplies business largely boils down to services and contracts, so keeping in mind how a comprehensive understanding of Rule 11 agreements can influence changes to those parameters-or even to the contractual relationships themselves-can be useful.

By definition, Rule 11 Agreements are not exclusive to industrial supplies and other fields in Texas, but are somewhat unique to the state itself. In nearly all other states, for the most part, a contract out of court or via electronic information will be admitted, and generally will be assumed valid unless proven otherwise, since the party that executed it “consented” to its terms and conditions.

In Texas, Rule 11 Agreements have their origins in cases that date back to the 1800s, when they were created to discontinue unnecessary litigation, avoid confusion in cases under review or consideration by the court and make sure that all parties are fully aware of “narrowed issues,” such as the authentication of a document, for instance, before the court has an opportunity to rule on a particular request.

In many cases, the terms of a Rule 11 Agreement are negotiated as part of a settlement, meaning that the potential for litigation is not entirely eliminated from the equation; the particular parties involved simply came to understandings that remove select points from consideration (for instance, the authenticity of a document) and result in certain issues being “settled out of court.”

Examples of this concept in the industrial supply sector might include agreements regarding the authenticity of contracts or certain emails, the exclusions of certain provisions from contracts or the authentication of some critical emails-and not others. In these cases, a Rule 11 Agreement might create efficiencies in the marketing, industrial supplies and contract negotiation end of a business, among other benefits.

A Rule 11 Agreement works with respect to another contract or agreement that is set between the parties in an industrial supplies context. These agreements are generally created before documents are submitted to a trial court, at which point in time they are presented as evidence that a certain basic fact is already covered and thus does not need to be proven to the court.

Any industry professional, regardless of their field or expertise, should carefully consider the legal resources available to them when making decisions related to agreements, negotiations or related matters. In times where they may be uncertain about a particular term and how it is used in a legal context, they should consult with their legal team before moving forward with any actions.