Fransisca Arias, et al. v. Family First Funding, LLC, et al.

CourtDistrict Court, D. New Jersey
DecidedFebruary 19, 2026
Docket3:23-cv-01226
StatusUnknown

This text of Fransisca Arias, et al. v. Family First Funding, LLC, et al. (Fransisca Arias, et al. v. Family First Funding, LLC, et al.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fransisca Arias, et al. v. Family First Funding, LLC, et al., (D.N.J. 2026).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

Civ. No. 23-1226 (JBD) FRANSISCA ARIAS, et al., MEMORANDUM ORDER Plaintiffs,

v.

FAMILY FIRST FUNDING, LLC, et al.,

Defendants.

Following a contentious dispute resulting in several competing motions to enforce a settlement agreement, the Court issued an Opinion and Order enforcing the terms of a settlement agreement reached during the December 2024 settlement conference in this case. See [Dkts. 114, 115]. As part of that ruling, the Court concluded that one of the parties’ agreed-upon terms provided that “[i]n the event of any . . . breach of a settlement term sheet, or formal settlement agreement, or any action to enforce them, the prevailing party shall be entitled to an award of reasonable attorney[s’] fees, costs, and expenses incurred in connection with such action to enforce.” [Dkt. 114] at 39 (quoting [Dkt. 82] at Tr. 16:4-21); see also [Dkt. 115] at 2-4. Accordingly, the Court authorized the filing of appropriate motions for attorneys’ fees, costs, and expenses incurred in connection with the motions to enforce. [Dkt. 114] at 39; [Dkt. 115] at 3-4. Defendant American Neighborhood Mortgage Acceptance Company, LLC, d/b/a AnnieMac Home Mortgage (“AnnieMac”) now seeks an award of $25,717.35 in attorneys’ fees and costs incurred by Maddin Hauser Roth & Heller P.C. (“Maddin Hauser”) and Cole Schotz P.C. (“Cole Schotz”) in connection with its motion to enforce. [Dkt. 118.] Defendant Scott Weikel, from whom AnnieMac seeks its fees, opposes the motion. [Dkt. 119.]

For the reasons set forth below, the Court GRANTS in part and DENIES in part AnnieMac’s motion for attorneys’ fees and costs. The Court will provisionally award AnnieMac $14,154.60, pending any supplemental submission to account for time spent preparing AnnieMac’s reply brief on the instant motion. I. BACKGROUND AND PROCEDURAL HISTORY The Court outlined the background to this case and the underlying

settlement dispute extensively in its July 1, 2025 Opinion and incorporates that Opinion in full. The Court will limit its discussion here to the relevant background necessary to resolve the present motion. At the conclusion of a settlement conference held on December 17, 2025, the parties agreed to a settlement resolving the federal and state wage claims asserted by plaintiffs in this case. Id. at 4-9. A little over a month later, on January 22, 2025, the parties informed the Court that a dispute had arisen

regarding the meaning and scope of the putative terms of the settlement agreement. Id. at 12. Specifically, the parties disagreed whether the settlement agreement required AnnieMac and defendants Gabriel and Neusa Gillen (collectively, the “Gillens”) to waive or release certain defenses that they may have had to claims that Weikel has asserted against them in a separate litigation filed in New Jersey state court (the “State Court Action”). Id. at 10-11. Unable to resolve the dispute, each of the parties filed competing motions to enforce some version of the settlement agreement. [Dkts. 96, 98, 102, 106, 107.] Relevant here, AnnieMac’s respective motion argued that “the parties

negotiated, finalized, placed on the record, and confirmed via email the principal terms of a valid and enforceable settlement,” and asked the Court to enforce the version of the proposed written settlement agreement that was circulated amongst counsel on January 15, 2025, but which had not been executed due to the parties’ dispute (the “January 15 Draft Settlement Agreement”). [Dkt. 96-2] at 7-8; [Dkt. 113-3]. AnnieMac sought to enforce that version of the agreement because, in

AnnieMac’s view, it accurately reflected the release language the defendants had agreed to during the settlement conference—namely, that defendants would release each other only from claims seeking reimbursement for the settlement amounts paid to plaintiffs, but not any other claims. Id.; [Dkt. 112] at 1. AnnieMac’s motion also requested that the Court deem it a prevailing party for purposes of fee-shifting. [Dkt. 96-2] at 8. By contrast, Weikel’s motion to enforce argued that he agreed to settle this

matter on the condition that all claims that he “anticipated bringing against the other [d]efendants were preserved and would not be adversely affected by having participated in the [s]ettlement.” [Dkt. 106] at 13 (emphasis added); accord [Dkt. 110] at 13. Weikel’s motion thus requested that the Court “enter an Order enforcing the settlement agreement consistent with [his] understanding that an entire controversy defense c[could] [not] be asserted against [him] in the pending State Court [Action],” or alternatively, “find that there [wa]s no meeting of minds and declare the settlement agreement null and void.” [Dkt. 106] at 5; [Dkt. 110] at 14.

In its resulting Opinion and Order, the Court enforced the settlement agreement that the parties reached during the December 17, 2024 settlement conference, consisting of the terms placed on the record, plus defendants’ agreement to preserve non-reimbursement claims against each other. [Dkt. 114] at 35-38; [Dkt. 115] at 2-3. In light of this ruling, the Court denied AnnieMac’s motion “to the extent that it s[ought] to enforce the January 15 Draft Settlement Agreement,” but

otherwise granted the motion, “inasmuch as the Court agree[d] with AnnieMac that defendants did not agree to waive any defenses to Weikel’s state law claims.” [Dkt. 114] at 38 n.15. The Court denied Weikel’s motion in full. Id. at 41; [Dkt. 115] at 2. As to fee-shifting, the Court explicitly held that [T]he parties agreed on the record at the settlement conference that “[i]n the event of any . . . breach of a settlement term sheet, or formal settlement agreement, or any action to enforce them, the prevailing party shall be entitled to an award of reasonable attorney[s’] fees, costs, and expenses incurred in connection with such action to enforce.” [A]nd [b]ecause the Court conclude[d] that the settlement agreement reached during the conference [wa]s enforceable, so too [wa]s th[e] provision regarding attorneys’ fees. [Dkt. 114] at 39 (citations omitted). The Court deferred decision “on who [wa]s a prevailing party, and the amount of fees to be awarded,” and directed the parties to submit any motions for attorneys’ fees, costs, and expenses incurred in connection with their respective motions to enforce by August 8, 2025. Id.; [Dkt. 115] at 3-4. AnnieMac’s present fee motion followed on August 8, 2025, which Weikel opposes. [Dkts. 118, 119.] II. LEGAL STANDARDS

Under the general “American Rule,” parties typically are responsible for paying their own attorneys’ fees. John T. ex rel. Paul T. v. Delaware Cty. Intermediate Unit, 318 F.3d 545, 555 (3d Cir. 2003). As such, courts generally do not award fees to a prevailing party absent explicit authority “by statute, court rule[,] or contract.” Apple Corps. Ltd. v. Int’l Collectors Soc., 25 F. Supp. 2d 480, 484 (D.N.J. 1998).

Here, the Court determined that the parties included as a term of their enforceable settlement that “[i]n the event of any . . . breach of a settlement term sheet, or formal settlement agreement, or any action to enforce them, the prevailing party shall be entitled to an award of reasonable attorney[s’] fees, costs, and expenses incurred in connection with such action to enforce.” [Dkt. 114] at 39 (quoting [Dkt. 82] at Tr. 16:4-21); see also [Dkt. 115] at 3 (“If a motion to enforce the settlement is filed, the prevailing party or parties shall be entitled to an award of

reasonable attorneys’ fees, costs, and expenses incurred in connection with the motion.”). Accordingly, the parties’ settlement agreement provides a basis for an award of counsel fees and costs here. Goethe v. Goethe, No.

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