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Enforceable Settlement Agreement?

I am involved, along with some other attorneys in my office, dahlia03/07/19
So I guess the real question then becomes whether the shorte onehell03/07/19
dahlia (Mar 7, 2019 - 10:02 am)

I am involved, along with some other attorneys in my office, in a case where an initial settlement agreement was reached by the parties. There was a short signed written agreement that indicated that a more formal settlement agreement would be prepared. There has been about a month of going back and forth on the terms of the more formal agreement (difficult clients on both sides). Last week we got another draft from the other side and I emailed it to my client. He called and asked for two changes. I called the other side and requested the changes. I don't remember the exact conversation but he probably said he could probably get those changes but nothing more. Two days later he emailed me a settlement agreement with the requested changes that had been signed by his client (the revised agreement had not been reviewed by my client). My client wants some additional changes and will not sign. The other side is threatening to file a motion to enforce. Thoughts?

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onehell (Mar 7, 2019 - 11:26 am)

So I guess the real question then becomes whether the shorter-form "agreement to agree" is itself enforceable in whole or in part. That comes up a lot with "term sheets" that get executed at the early stages of M&A deals and such, and there are lots of examples going both ways.

You should be able to find a good bit of caselaw and secondary sources all about it, which you can then compare against your own facts and the language in the short-form settlement. Search westlaw for agreements to agree and you should have little difficulty finding stuff going both ways on a variety of different facts.

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