MELINDA HARMON, District Judge.
Before the Court is Plaintiff's Motion to Enforce Settlement Agreement (Document No. 25). Defendants filed a Response (Document No. 26), and Plaintiff filed a Reply (Document No. 29). Having considered these filings, the facts in the record, and the applicable law, the Court finds that Plaintiff's Motion will be denied.
This breach of contract dispute was originally filed on June 10, 2015. (Document No. 1). On September 18, 2015, Plaintiff filed an Order of Dismissal on Settlement Announcement (Document No. 13), stating that "a settlement of this action has been reached," and that "the case is dismissed without prejudice to the right of the parties to move for reinstatement within ninety days from the entry of this order on representation that approval of the settlement could not be obtained from principals." However, on January 14, 2016, Plaintiff filed an Unopposed Motion to Vacate (Document No. 14), which the Court granted. (Document No. 15). In that Motion Plaintiff stated that "[s]ince that [September 18, 2015] order was issued, counsel for the parties had been diligently preparing and had nearly finalized settlement papers. However, on December 24, 2015, counsel for Defendants informed Plaintiff's counsel that Defendants would be unable to perform pursuant to the agreed settlement in principle. Accordingly, there is no settlement in this matter." (Document No. 14 at 2). Therefore the Court reinstated the case. (Document No. 15).
Now Plaintiff has filed a Motion to Enforce the Settlement Agreement (Document No. 25) and accompanying Memorandum of Law in Support. (Document No. 25-1). The parties did not sign a formal settlement agreement, but Plaintiff argues that email exchanges between the two attorneys, Leodis C. Matthews (representing Plaintiff Yosemite) and John Flood, Esq. (representing Defendant Bose and JRS Metals), constitute an enforceable settlement agreement under Rule 11 of the Texas Rules of Civil Procedure, because the emails "contain all of the material terms of the settlement, demonstrate a clear intention of the Parties to enter into a binding settlement agreement and demonstrate an intention to be bound by the electronic record." Id. at 6-7. However, in the last email, Flood repudiates any agreement, stating that: "I just learned yesterday, for the first time, that my client is not immediately able to perform as outlined in the agreement that you and I have diligently worked to finalize." Id. (citing Document No. 25-6 at 2).
In response, Defendants argue that "Plaintiff is precluded from claiming that there was an enforceable settlement agreement based on the doctrines of judicial admissions and judicial estoppel," that "there was never a finalized, enforceable settlement agreement," and that "a settlement agreement may only be enforced by means of a separate claim for breach of contract, subject to the normal rules of pleading and proof." (Document No. 26 at 2-11). As described below, Defendants' third argument is correct, and prevents the Court from granting Plaintiff's Motion to Enforce.
"[A] district court has inherent power to recognize, encourage, and when necessary enforce settlement agreements reached by the parties." Bell v. Schexnayder, 36 F.3d 447, 449 (5th Cir.1994).
Rule 11 provides that, "[u]nless otherwise provided in these rules, no agreement between attorneys or parties touching any suit pending will be enforced unless it be in writing, signed and filed with the papers as part of the record, or unless it be made in open court and entered of record." Tex. R. Civ. P. 11. "The purpose of Rule 11 is to forestall the `misunderstandings and controversies' that often attend oral agreements between counsel." Williamson, 947 F. Supp. 2d at 707 (citations omitted).
A settlement agreement under Rule 11 can be enforced in two ways. If both parties consent to the agreement, the Court may enter an "agreed judgment." However, if consent does not exist, as is the case here, "a court may not render an agreed judgment on the settlement agreement, but rather may enforce it only as a written contract." Mantas v. Fifth Court of Appeals, 925 S.W.2d 656, 658 (Tex. 1996) (citing Padilla v. LaFrance, 907 S.W.2d 454, 461 (Tex. 1995)).
As explained above, Plaintiff's Motion to Enforce may be construed as a sufficient pleading to raise a cause of action for breach of contract, but the Court cannot enforce the agreement without a full determination of the relevant facts and circumstances via summary judgment or trial; to do so would deprive Defendant of due process.
For these reasons, the Court hereby
ORDERS that Plaintiff's Motion to Enforce Settlement (Document No. 25) is DENIED. If Plaintiff intends to pursue a breach of contract claim regarding the settlement agreement, Plaintiff is ORDERED to file said claim in the proper form (i.e. in an amended complaint against Defendants).