Posts Categorized: Settlements

Posted: October 8, 2021

Settlement Agreement Providing that Trustees to Distribute Shares as if “Subsequent Recovery” Ignored as “Gap Filler”

On August 19, 2021, in Matter of Wells Fargo Bank v Aegon USA Inv. Mgt., LLC, 2021 NY Slip Op 04740, the First Department issued a decision holding, inter alia, that even though the settlement agreement set forth the means for calculating and distributing the allocable share to each of the settlement trusts, the trustees... Read more »

Posted: March 12, 2019

Stipulation to Support Class Action Settlement Unenforceable

On February 14, 2019, the First Department issued a decision in Cohen v. Saks Inc., 2019 NY Slip Op. 01162, holding that a stipulation to support a class action settlement was unenforceable, explaining: While plaintiffs’ promise to support the stipulation and cooperate in seeking court approval is not an unenforceable statement of intention to do something in... Read more »

Posted: December 29, 2018

Written Agreement Requirement of CPLR 2104 Does Not Apply to Pre-Litigation Settlements

On November 8, 2018, Justice Hudson of the Suffolk County Commercial Division issued a decision in Walter Boss, Inc. v. Roncalli Freight Co., Inc., 2018 NY Slip Op 51891(U), holding that CPLR 2104’s requirement that a stipulation of settlement be in writing does not apply to the settlement of disputes before litigation, explaining: CPLR 2104... Read more »

Posted: December 21, 2018

Defendant Ratified Settlement Agreement By Accepting Benefits Despite Failure to Satisfy Express Condition

On December 13, 2018, the First Department issued a decision in GEM Holdco, LLC v. RDX Tech. Corp., 2018 NY Slip Op 08564, holding that a settlement agreement was enforceable, even though a condition of the contract was not satisfied, because the defendant ratified the agreement.  (N.B.  Schlam Stone & Dolan partner Bradley Nash represented... Read more »

Posted: April 10, 2018

Indemnity Coverage for Class Action Settlement Not Affected by Covenant Not to Execute Judgment Against Insured’s Assets

On March 8, 2018, Judge Block of the EDNY issued a decision in Illinois Union Ins. Co. v. US Bus Charter & Limo Inc., Case No. 1:16-cv-06602-FB-RLM, holding that indemnification rights under a liability policy survived a class action settlement in which the insured consented to a $50 million judgment against it, subject to a... Read more »

Posted: April 1, 2018

Court Lacks Jurisdiction to Decide Motions Filed After Action Voluntarily Discontinued

On March 13, 2018, Justice Knipel of the Kings County Commercial Division issued a decision in Nemirovsky v. Brailovskiy, 2018 NY Slip Op. 30432(U), dismissing motions filed after an action was voluntarily discontinued for lack of jurisdiction, explaining: Based upon the review of the parties’ submissions and the record adduced in this matter, it is... Read more »

Posted: March 31, 2018

Court Vacates Stipulation of Discontinuance Without Prejudice and Reinstates Claim Against Former Defendant

On March 14, 2018, Justice Scarpulla of the New York County Commercial Division issued a decision in Oriali SRL v. Domenico Vaca, 2018 NY Slip Op. 30435(U), vacating a stipulation of discontinuance without prejudice and reinstating a claim against a former defendant, explaining: Stipulations of settlement are favored by the courts and not lightly cast... Read more »

Posted: March 5, 2018

Judge Korman Grants Motion to Dismiss for Lack of Subject Matter Jurisdiction in Action to Enforce Settlement of Prior Federal ERISA Lawsuit

Posted by Solomon N. Klein, Litigation Partner It is often advisable when a case is settled to have the same court retain jurisdiction to enforce the settlement agreement in the event of a breach. However, as illustrated in a decision last week by District Judge Edward R. Korman*, the enforcement of a settlement agreement is... Read more »

Posted: January 27, 2016

Settlement Agreement Not Improper Mary Carter Agreement Increasing Other Defendant’s Liability

On January 14, 2016, the Third Department issued a decision in Reutzel v. Hunter Yes, Inc., 2016 NY Slip Op. 00240, holding that a settlement agreement was admissible to show the third-party defendant’s share of liability. In Reutzel, the “defendant leased a portion of” a building “to [the] third-party defendant.” The plaintiff, one of the... Read more »

Posted: April 17, 2015

Settlement Signed By Counsel Binding On Client

In Gordon v. The City of New York, 09 CV 04577 (E.D.N.Y. Mar. 31, 2015), Judge Edward R. Korman granted defendants’ motion to enforce a settlement agreement signed by plaintiff’s counsel but which plaintiff refused to sign. Judge Korman found that plaintiff was bound by the settlement agreement notwithstanding her change of heart after the... Read more »