Practice point: To be enforceable, stipulations of settlement must conform to the criteria set forth in CPLR 2104. Where a settlement is not made in open court, CPLR 2104 provides, in pertinent part, as follows: "An agreement between parties or their attorneys relating to any matter in an action . . . is not binding upon a party unless it is in a writing subscribed by him or his attorney." The plain language of the statute directs that the agreement itself must be in writing, signed by the party or the party's attorney to be bound. In addition, since settlement agreements are subject to the principles of contract law, for an enforceable agreement to exist, all material terms must be set forth and there must be a manifestation of mutual assent.
Student note: Stipulations of settlement are judicially favored and will not lightly be
set aside. They will be enforced with rigor and without a searching
examination into their substance as long as they are clear, final and
the product of mutual accord.
Case: Forcelli v. Gelco Corp., NY Slip Op 05437 (2d Dept. 2013).
Here is the decision.
Tomorrow's issue: Default for missing a compliance conference.
