Fox v. Wiener Laces, Inc.

105 Misc. 2d 672, 432 N.Y.S.2d 811, 1980 N.Y. Misc. LEXIS 2706
CourtNew York Supreme Court
DecidedOctober 24, 1980
StatusPublished
Cited by7 cases

This text of 105 Misc. 2d 672 (Fox v. Wiener Laces, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fox v. Wiener Laces, Inc., 105 Misc. 2d 672, 432 N.Y.S.2d 811, 1980 N.Y. Misc. LEXIS 2706 (N.Y. Super. Ct. 1980).

Opinion

OPINION OF THE COURT

Shanley N. Egeth, J.

The instant motion is another of a recent number of judicial applications addressed to this court which raise questions as the efficacy of a putative settlement agreement ostensibly consummated during the conduct of the court’s pretrial conference function.

This court views the performance of its mediative function in rendering judicial assistance to litigants and Bar [675]*675during a meaningful pretrial conference as one of its most significant and salutary expenditures of judicial time and effort. When properly achieved, without hint or exertion of undue external pressure, an amicable adjustment of differences between litigants is frequently the most ideal resolution of civil litigation, which furthers a greater respect for our institutions and the administration of justice, while providing the parties with a result which they can accept as economically and psychologically advantageous (see Maxie v Gimbel Bros., 102 Misc 2d 296). Our courts have long favored such an approach (see Matter of Hecht, 24 AD2d 1001). This process has attained greater importance during the current massive judicial efforts to combat undue civil calendar delay.

In this context, the validity and binding nature of the end product of such a procedure (stipulation or agreement) will frequently be determinative of the effectiveness of the process itself. It would appear that our courts will be increasingly called upon to apply, define and redefine the principles applicable to the efficacy of such agreements. CPLR 2104 renders them enforceable under certain conditions, and sanctions those made in open court (see Covert v Covert, 50 AD2d 622). Where there is no writing, and a dispute exists as to whether an agreement exists, enforcement will be withheld (Accarino v Hirsch, 6 AD2d 795; Rosen v Grand, 6 AD2d 799; see Veith v ABC Paving Co., 58 AD2d 257). Our Court of Appeals has dealt with these principles in Matter of Dolgin Eldert Corp. (31 NY2d 1) without conclusively determining or defining the effect of a robing room conference or the extent and nature of the writing required. The Appellate Division, First Department, has held that a nonrecorded robing room agreement does not meet the statutory open-court requirement (Signer v Abramowitz, 45 AD2d 677) but held otherwise when a stipulation is dictated of record (Bernstein v Salvatore, 62 AD2d 945; see, also, Owens v Lombardi, 41 AD2d 438). Recently this court invoked an estoppel against a party seeking to upset an agreement not stenographically recorded of record following a pretrial conference (Tenwood Assoc. v United States Fire Ins. Co., 104 Misc 2d 467). In a [676]*676case decided at the same time as the one at bar, this court is holding that an agreement not dictated of record, made by a nonadmitted employee of an attorney for a party, can not meet the CPLR requirement for enforcement of an open-court agreement.

THE MOTIONS

Movant Lynn Fox has moved to enforce and compel compliance with an alleged agreement settling the above-captioned companion actions made in open court at Trial Term Part XI, and there stenographically dictated of record, which provides, inter alla, for the mutual discontinuance, with prejudice and without costs, of both actions. Wiener Laces, Inc. cross-moves to vacate the stipulation of settlement upon the ground that the settlement was not authorized unless conditioned upon the procurement of certain releases barring future defamation actions against third parties which have not yet commenced.

FACTS

After a robing room and subsequent courtroom conference the attorneys for the respective parties agreed to settle both actions herein by mutual discontinuance with prejudice and without costs. A two-page stipulation was dictated of record to the court stenographer by the attorney for the party now seeking to challenge the efficacy of the agreement. The stipulation is brief, unequivocal, contains a normal provision for exchanges of necessary releases and documents (without defining them) and concludes with the statement of the opposing attorney that he consents to the “foregoing entire stipulation relating to the two litigations.” The affidavit of the attorney dictating the stipulation, who now seeks to vacate it, concedes that after exploration of mutual discontinuance, he informed his adversary that he had to consult with his client; that he did so; was authorized to settle; dictated the simple stipulation of record; and tacitly acknowledged that no nonexpressed conditions thereto were communicated to opposing counsel. Thereafter the attorney for the party seeking repudiation insisted upon procuring releases of potential defamation claims from persons not parties to either of the settled ac[677]*677tians therein. He asserts that his client conditioned his grant of settlement authority thereon, that he intended and assumed such result when he dictated the stipulation of settlement, but he concedes that no reference thereto is contained therein, and that he never in any way communicated the existence of any such condition or reservation to opposing counsel, the court or to the court stenographer. In effect, counsel and his client seek to be relieved of the impact of the settlement agreement based upon a claim of uncommunicated condition or reservation, and possible unilateral mistake made during dictation of the agreement.

STIPULATION FULLY ENFORCEABLE

The stipulation which is the subject of these motions was dictated into the record and thus fully meets the open-court requirements of CPLR 2104. As such it is fully enforceable. (Matter of Dolgin Eldert Corp., 31 NY2d 1, supra; Veith v ABC Paving Co., 58 AD2d 257, supra; Bernstein v Salvatore, 62 AD2d 945, supra.)

The daily published law journal rules of this court require the presence of an attorney with knowledge of the facts authorized to make binding. commitments for the client, and the client is not required to appear. The dictating attorney therefore certainly had apparent and implied authority to fully represent and bind his client in consummating this settlement (Di Russo v Grant, 28 AD2d 847; Continental Cas. Co. v Chrysler Constr. Co., 80 Misc 2d 552; Martinez v 348 East 104 St. Corp., 60 Misc 2d 31).

In the instant case the attorney went beyond conduct which created an implication of implied authority. He actually went to telephone the client, and explicitly affirmed the existence of express authority to effectuate the proposed settlement. This is not a case where an attorney settled an action without his client’s consent (Countryman v Breen, 241 App Div 392, affd 268 NY 643; Mazzella v American Home Constr. Co., 12 AD2d 910). It is rather a case where a client expressly authorized settlement, and that fact was communicated to opposing counsel. Hidden, nonexpressed limitations upon such granting of client’s consent, may not be subsequently utilized to vitiate the agreement upon which an adversary is entitled to rely. Such conduct pre[678]*678sents an even more compelling case for judicial estoppel than that confronted by this court in Tenwood Assoc. v United States Fire Ins. Co. (104 Misc 2d 467, supra).

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Bluebook (online)
105 Misc. 2d 672, 432 N.Y.S.2d 811, 1980 N.Y. Misc. LEXIS 2706, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-v-wiener-laces-inc-nysupct-1980.