Hadwari v. Keystone Shipping Co.

Summary

The court considered whether the parties had reached an enforceable settlement or whether the agreement was conditioned on approval by the defendant’s insurer’s board of directors. It held that the settlement was unconditional, revoked the dismissal order, and enforced the settlement for $176,000 with interest. The court noted that the defendant had not challenged its counsel’s apparent authority to settle.

Holdings

1. The settlement was not subject to an undisclosed option for defendant to withdraw if its insurer's board of directors later refused approval. Because counsel represented to the court that the case was settled and did not disclose a contrary condition, defendant was at least estopped from asserting that condition.
2. The court enforced the settlement as agreed to by the parties and acted upon by the court, revoked the dismissal order, and ordered judgment for plaintiff in the agreed amount of $176,000.

Questions Presented

1. Whether the parties entered an unconditional settlement agreement when counsel informed the court that the case had been settled and the court acted on that representation.
2. Whether defendant could avoid enforcement of the settlement based on an alleged custom or undisclosed condition requiring approval by the insurer's board of directors.
3. Whether the court should revoke the dismissal order and enter judgment enforcing the settlement.

Disposition

other