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330 N D St, Ste 542, San Bernardino, CA 92401

“Any form of ADR may result in a settlement agreement. The method of enforcing these agreements depends on whether litigation is pending.”

“No Litigation Pending: If no litigation is pending, an aggrieved party’s remedy is to file a separate suit in equity or for breach of contract to enforce the settlement agreement. . . When there is no pending action, parties may not obtain appointment of a temporary judge or referee to enforce a settlement reached with a private mediator under CCP sec. 664.6.”

“Litigation Pending: If litigation is pending, the settlement agreement may be enforceable in the underlying action (or separately).

Motion to enforce settlement [CCP sec. 664.6]: Parties to a settlement agreement reached in pending litigation may specifically request that the court retain jurisdiction to enforce it. The court is empowered to enter judgment enforcing the settlement on motion of either party, provided that the settlement agreement and the request to enforce are: in a “writing signed by the parties” outside court; or entered into orally before the court. Section 664.6 does not require that all parties personally assent to the settlement in the same manner. A “mix and match” approach to the manner of agreement is permissible (one party agreeing orally before the court, another in a signed writing outside court) so long as the parties agree to the same material terms.”

“Agreement must contain ‘material’ settlement terms: A settlement agreement is enforceable under section 664.6 only ‘if the parties agreed to all material settlement terms.’ A material term may be either: ‘a necessary term, without which there can be no contract’; or ‘an important term that affects the value of the bargain.’ If the parties’ settlement agreement omits a ‘necessary’ term, the contract is rendered a nullity. A settlement agreement that omits an ‘important’ term is enforceable if ‘the terms it does include are sufficiently definite for a court to determine whether a breach has occurred, order specific performance or award damages.'”

“Oral settlements before the court also are enforceable under CCP section 664.6. But the parties must personally appear and orally agree to the settlement. Stipulations by counsel alone are unenforceable under Section 664.6.”

[California Practice Guide: Alternative Dispute Resolution [citations omitted]]

Post Author: lawofficesofjamesrdickinson