A consent decree is an agreement or settlement that resolves a dispute between two parties without admission of guilt (in a criminal case) or liability (in a civil case), and most often refers to such a type of settlement in the United States. The plaintiff and the defendant ask the court to enter into their agreement, and the court maintains supervision over the implementation of the decree in monetary exchanges or restructured interactions between parties. It is similar to and sometimes referred to as an antitrust decree, stipulated judgment, settlement agreements, or consent judgment. Consent decrees are frequently used by federal courts to ensure that businesses and industries adhere to regulatory laws in areas such as antitrust law, employment discrimination, and environmental regulation.
The process of introducing a consent decree begins with negotiation. One of the three happens: a lawsuit is filed and the parties concerned reach an agreement prior to adjudication of the contested issues; a lawsuit is filed and actively contested, and the parties reach an agreement after the court has ruled on some issues; or the parties settle their dispute prior to the filing of a lawsuit and they simultaneously file a lawsuit and request that the court agree to the entry of judgment. The court is meant to turn this agreement into a judicial decree. In many cases, the request for entry of a consent decree prompts judges to sign the documents presented then and there. In some cases, however, such as criminal cases, the judge must additionally make some sort of assessments before the court’s entry of the agreement as a consent decree.
The usual consent decree is not self-executing. A consent decree is implemented when the parties transform their agreements from paper to reality. In this the judge who signed the decree may have no involvement or may monitor the implementation. The judge can only step in to assist in enforcement if a party complains to the court that an opponent has failed to perform as agreed. In this case, the offending party would be committed for contempt.
Decrees by consent are more binding than those issued in invitum, or against an unwilling party, which are subject to modification by the same court, and reversal by higher courts. The decree issued by consent cannot be modified, except by consent. If the decree was obtained by means of fraud or given by mistake it may be set aside by a court. Errors of law or of inferences from the facts may invalidate it completely.
Typically a consent decree dispenses with the necessity of having proof in court, since by definition the defendant agrees to the order. Thus the use of a consent decree is not any sort of sentence or admission of guilt. Likewise the consent decree prevents a finding of facts, so the decree cannot be pleaded as res adjudicata.