MARK L. WOLF, District Judge.
On June 29, 2015, the court entered judqment in favor of defendants Edmond Richardi and North Street Steakhouse, Inc., (collectively the "defendants") on plaintiff Duane Alves' claims pursuant to Massachusetts General Laws Chapter 93A Sections 9 and 11. That ruling resolved the final outstanding claims by the plaintiff in this case.
Prior to that judgment, on June 12, 2015, the defendants filed a Motion to Enforce Settlement Agreement. In that motion and supporting affidavit, the defendants allege that they entered into a binding settlement agreement with the plaintiff by which all claims and future appeals would be settled for $25,000. The plaintiff has opposed that motion, asking the court to find that there is no enforceable settlement agreement.
Both parties have filed affidavits in support of their respective positions. Therefore, the court is treating the plaintiff's opposition to the defendant's motion to enforce the settlement as a motion for summary judgment. For the reasons discussed below, the court finds that material factual disputes preclude resolving this issue without an evidentiary hearing. However, in light of the court's denial of Alves I Chapter 93A claims, the court is ordering the defendants to report whether they wish to pursue their motion to enforce the settlement agreement.
"The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Summary judgment is, therefore, appropriate only if there exists no factual dispute that is both "material" and "genuine."
A court "does not have inherent jurisdiction to enforce a settlement agreement merely because it presided over the law suit that led to the settlement."
The court will apply Massachusetts contract law
If the settlement agreement is entered into by a party's at torney, the party seeking to enforce the agreement must show that the attorney had actual authority to bind his client.
The defendants' Affidavit of Steven T. Snow creates disputes of material fact that preclude granting the plaintiff's motion for summary judgment. Viewing the evidence in the light most favorable to the defendants, a reasonable fact finder could find the following facts.
Mr. Snow, as counsel for the defendants, engaged in settlement discussions wi th Alves' counsel, Jonathan Plaut, following the jury verdict in this case.
During a telephone conversation between Mr. Plaut and Mr. Snow on May 30, 2015, Mr. Plaut stated "that his client would accept the sum of Twenty Five Thousand ($25,000.00) Dollars to resol ve all claims."
On June 1, 2015, Mr. Snow and his co-counsel Joseph Cavanaugh, called Mr. Plaut in order to finalize the settlement documents. Mr. Plaut did not answer. On June 2, 2015, Mr. Plaut sent an email stating that "there is no settlement unless and until Mr. Alves and your clients sign a settlement agreement."
Alves denies these allegations and contends that, even if Mr. Plaut did accept a settlement offer, he lacked the actual authority to do so. However, viewing the evidence in the light most favorable to the defendants, a reasonable fact-finder could conclude that Mr. Plaut spoke to Alves on May 29, 2015, received authorization from Mr. Alves to make a settlement offer of $25,000 that would settle all claims and appeals involving the defendants, and that Mr. Snow accepted that offer on behalf of the defendants on May 31, 2015, thus creating a binding settlement agreement.
The court will hold an evidentiary hearing to determine whether the parties entered into a binding settlement agreement.
In view of the foregoing, it is hereby ORDERED that:
1. By July 10, 2015, defendants North Street Steakhouse and Edmond Richardi shall report whether they wish to withdraw their
2. If the defendants do not withdraw their motion, the parties shall, by July 24, 2015, file proposed findings of fact and conclusions of law, with memoranda discussing the relevant legal authority as applied to the proposed facts.
3. The court will hold an evidentiary hearing regarding that motion on August 18, 2015, at 10:00 a.m. As attorneys Cavanaugh, Snow, and Plaut are witnesses who will be questioned during this hearing, they shall inform the court prior to the hearing as to who will represent them during the questioning.