This week, the Second Department issued a decision in Alessina v. El Gauchito II, Corp., which serves as another caution for attorneys and their clients to pay mindful attention to the communications they exchange via email.
The plaintiffs are current and former employees of restaurants owned by the defendant corporation. The defendant corporation’s principal was also named as a defendant. The parties agreed to mediate an employment dispute, and the mediation successfully resulted in a settlement. By email, the plaintiffs’ attorney asked the defendants’ attorney to confirm the terms of settlement that were reached during the mediation session, and in this email, the plaintiffs’ attorney set forth the specific settlement terms. By email reply, the defendants’ attorney confirmed the settlement terms. A month later, the defendants’ attorney advised the plaintiffs’ attorney that the defendants would not pay the settlement amount.
Arguing that the plaintiffs’ attorney’s email, which set forth the specific terms of settlement, was accepted by the defendants’ attorney, who had authority to settle the case, the plaintiffs moved for summary judgment in lieu of complaint. The plaintiffs argued that the emails constituted an instrument for the payment of money only, and therefore, this summary vehicle could be used to obtain a judgment against the defendant.
The trial court granted the plaintiffs’ motion, and the defendants appealed.
The Second Department affirmed the lower court’s holding, finding that all of the material terms of the settlement were set forth in the email exchanged, and the email was accepted and confirmed by the defendants’ attorney. The Court held that the email exchange between counsel was sufficient to constitute an enforceable settlement agreement between the parties. Because the settlement agreement was an instrument for the payment of money only, and defendants failed to raise a triable issue of fact in opposition thereto, the judgment was properly awarded in favor of the plaintiffs.
The takeaway: mind your correspondence and agreements set forth therein! If you have given your attorney the authority to settle a matter on your behalf, and you have previously agreed to the settlement terms, your attorney would not have any reason to believe that you have changed your mind. Any change of heart should be immediately conveyed to your counsel.
Disclaimer: The information contained in this post is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls and communications. Contacting us, however, does not create an attorney-client relationship.