Alternative Dispute Resolution
of this evidence for any other relevant and otherwise admissible purpose is permitted. Te listed examples of permissible use are illustrative and not exclusive.
Id. at 454. Te Court stated that Fed. R. Evid. 408 “does not shelter [any attorney] who would attempt to shield from the Court’s scrutiny deliberately untruthful statements of material fact communicated to opposing counsel in settlement negotiations relating to litigation pending in this Court.” Id. at 437. Sometimes, after a settlement agreement has been
reached at the conference, one of the parties changes its mind and balks at fulfilling the agreement. When this happens, a party seeking to enforce the settlement agreement has two options by which to request the Court’s intervention. Te first option is to file a Motion to Enforce Settlement Agreement. E.g., Rohn Prods, Int'l, LC v. Sofitel Capital Corp. USA, Inc., No. 06-504-WDQ, 2010 WL 2158883 (D. Md. May 24, 2010). Te second is to initiate a new suit for breach of contract. E.g., Corsair Special Situations Fund, L.P. v. Engineered Framing Sys., Inc., No. PWG-09-1201, 2010 WL 958019 (D. Md. March 16, 2010). However, it is important to note that the second option would cost the filing party $350.00. See 28 U.S.C. § 1914(a) (the cost of filing a civil lawsuit in a U.S. District Court is $350.00). “District courts have inherent authority, derived from
their equity power, to enforce settlement agreements.” Williams v. Prof ’l Transp., Inc., 388 F.3d 127, 131-32 (4th Cir. 2004); see Hensley v. Alcon Labs., Inc., 277 F.3d 535, 540 (4th Cir. 2002); Millner v. Norfolk & W. Ry., 643 F.2d 1005, 1009 (4th Cir. 1981); Rohn, 2010 WL 2158883, at *4; King v. Sallie Mae, Inc., No. PJM-08-2934, 2009 WL 2596643 (D. Md. Aug. 20, 2009). However, when the parties dispute a settlement agreement’s terms—or its existence—the Court cannot enforce the agreement “summarily.” Hensley, 277 F.3d at 540-41 (emphasis in original); see Williams, 388 F.3d at 132. First, it “‘must find that the parties reached a complete agreement,’” and second, it “‘must be able to determine its terms and conditions.’ Te fact that a party may have ‘second thoughts about the results of a valid settlement agreement does not justify setting aside an otherwise valid agreement.”’ King, 2009 WL 2596643, at *3 (quoting Hensley, 277 F.2d at 540-41) (internal citations omitted); see Rohn, 2010 WL 2158883, at *4. Standard contract principles apply when the Court
considers a motion to enforce settlement agreement. Bradley v. Am. Household Inc., 378 F.3d 373, 380 (4th Cir. 2004); Hensley, 277 F.3d at 540. Tus, “the agreement ‘exists once offer, acceptance and consideration are exchanged between the parties, regardless of whether the agreement is oral or
written.’”Rohn, 2010 WL 2158883, at *5 (quoting Clayton v. Ameriquest Mortg. Co., No. 1:-02CV415, 2004 WL 734978, at *3 (M.D.N.C. Apr. 5, 2004)). Additionally, “a manifestation of mutual assent is an essential prerequisite to the creation or formation of a contract.” Cochran v. Norkunas, 919 A.2d 700, 708 (Md. 2007). Terefore, there must have been “an actual meeting of the minds regarding contract formation.” Id. at 713. Indeed, “[f ]ailure of parties to agree on an essential term of a contract may indicate that the mutual assent required to make a contract is lacking,” and “[i]f the parties do not intend to be bound until a final agreement is executed, there is no contract.” Id. Given the law regarding enforceability of a settlement agreement, most Magistrate Judges memorialize in some written form what the parties agreed to, so that if a dispute arises in the future, the essential terms of the agreement may be shown. Over the course of the years, the Magistrate Judges of
this Court have identified practice tips that help ensure a successful settlement conference. Tese tips include:
1. Be realistic in your evaluation of the strengths and weaknesses of your case. Lawyers who proclaim that there are no weaknesses in their case often telegraph their inexperience or unrealistic assessment of their case.
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Trial Reporter / Fall 2010 17
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