Hertenstein v. Kimberly Home Health Care, Inc.

69 F. Supp. 2d 1341, 1999 U.S. Dist. LEXIS 15237, 1999 WL 787257
District Court, D. Kansas·Decided September 14, 1999·No. No. 98-2369-JTM·Published

Opinion

ORDER

MARTEN, District Judge.

On July 12, 1999, the court by a memorandum order granted the defendant’s mo[1342] tion for summary judgment, holding that the plaintiffs employment discrimination action would be dismissed on the merits.

At some point very close in time to the filing of the court’s order, the parties entered into a settlement agreement. Neither party notified the court of any pending settlement. Neither party notified the court when the settlement had been reached. Neither party, prior to the settlement, made any inquiry to the court about the status of defendant’s motion for summary judgment.

Instead, in the week after the dismissal of the action, in two separate calls made by two different members of the firm acting as counsel for the defendant contacted the chambers of the court, making inquiries which suggested that the court staff had somehow alerted plaintiffs counsel to the impending dismissal, which prompted her to alter plaintiffs settlement position. After learning of these inquiries, the court conducted a conference call in which it informed counsel that the only communication concerning the summary judgment motion occurring between the court and the parties was the written memorandum order of July 12, 1999. Counsel for the plaintiff affirmatively stated that no other contact between herself and the court had occurred. Counsel for defendants were unable to articulate any evidence which would support any contrary suggestion.

A second call was initiated by defendant’s counsel to the court and included plaintiffs counsel as well. Among other things, defendant’s counsel indicated his clients did not believe plaintiffs counsel did not have some early notice of the decision and were not going to honor the settlement on the basis that the settlement was based on a “mutual mistake of fact,” that being that the court had granted summary judgment to defendants. On July 26, 1999, plaintiff filed a motion for summary judgment, seeking to enforce the settlement agreement. Plaintiff contends in the motion that defendant has unjustifiably reneged on the agreement, alleging the existence of a mutual mistake. In the same motion, the plaintiff moved to alter and amend the court’s order of July 12. On July 30, 1999 the court entered an order directing the parties to brief the jurisdiction of the court to enforce the settlement agreement in light of Kokkonen v. Guardian Life Ins. Co., 511 U.S. 375, 381-82, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994)

The parties have now briefed the issue of continued jurisdiction in the action, and the court finds that the attempt to enforce the settlement agreement must be dismissed.1 The defendants agree that, under Kokkonen, the court must possess an independent basis for exercising continued jurisdiction. The plaintiff essentially argues that Kokkonen is irrelevant, and that the court still has the inherent power to enforce the settlement agreement because the matter is still before the court. In support of her argument, plaintiff cites in particular the decisions in Langley v. Jackson State University, 14 F.3d 1070, 1075 (5th Cir.1994) and Trujillo v. State of New Mexico, No. 98-2068, 1999 WL 63885, *2 (10th Cir. Feb.11, 1999).

Neither decision supports the relief sought by plaintiff. Langley, which was decided prior to the Supreme Court’s deci[1343] sion in Kokkonen, held that “once a court dismisses an action because of a settlement agreement, and the agreement is neither approved of nor incorporated by the court in its decree or order and the court does not indicate any intention to retain jurisdiction, an action to enforce the settlement agreement requires federal jurisdiction independent of the action that was settled.” 14 F.3d at 1074. The court ultimately concluded that the district court erred in attempting to enforce a settlement agreement. In reaching this conclusion, the court distinguished earlier decisions, such as Massachusetts Cas. Ins. Co. v. Forman, 469 F.2d 259 (5th Cir.1972), on the grounds that in that case “the plaintiff sought to enforce a settlement agreement entered into to end litigation then pending before the district court. In other words, unlike the case before us today, the motion to enforce the settlement agreement was filed before the district court dismissed the case.” Id. at 1075 (emphasis in Langley).

In the present case, as indicated earlier, the court granted the defendant’s motion for summary judgment, fully disposing of the present action, on July 12, 1999. The court’s order was reached solely on the merits. The clerk’s entry of judgment, terminating the action, was entered July 13. Prior to this time, no party attempted to inquire as to the status of the court’s ruling. No party attempted to notify the court of any pending, or successful, settlement. Plaintiff filed her motion to enforce the settlement agreement on July 26, after the court dismissed the action. The decision in Langley does not support plaintiffs argument.

The Tenth Circuit’s decision in Trujillo is equally unavailing. It is true that in that case the court repeated the (pre-Kok-konen) observation made in United States v. Hardage, 982 F.2d 1491, 1496 (10th Cir. 1993) that a “trial court has the power to summarily enforce a settlement agreement entered into by the litigants while the litigation was pending before it.” 1999 WL 63885, at *3. But a review of the decision quickly demonstrates that Trujillo has little application here. That is, the case simply did not involve the type of situation addressed in Kokkonen and also presented here: an attempt to enforce a settlement agreement after an action has been otherwise dismissed.

Instead, the key issue in Trujillo was whether the plaintiffs attorney had the authority to enter into a settlement agreement. The settlement was reached between counsel “[o]n the eve of trial,” the matter was removed from the trial docket, and “[wjithin days,” the plaintiff wrote to the court that her attorney had entered into the settlement without authority. Id. at *2. The question of the authority to settle was then reviewed first by a magistrate and then de novo by the district court. The magistrate found that plaintiffs attorney had express, implied, and apparent authority to enter into the settlement agreement. Only after it adopted these findings did the district court enforce the settlement. Unlike Trujillo, the-present case involves an attempt to enforce a settlement reached after formal judgment has been entered on grounds unrelated to the settlement.

Plaintiff also cites as authority American Tourmaline Fields v. Intenat’l Paper Co., No.. 96-CV-3363-D, 1999 WL 325021 (N.D.Tex. May 19, 1999) for the proposition that the court has inherent power to enforce the settlement agreement. Again, this decision fails to justify the reliance or interpretation placed upon it by the plaintiff. That court held:

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Hertenstein v. Kimberly Home Health Care, Inc., 69 F. Supp. 2d 1341, 1999 U.S. Dist. LEXIS 15237, 1999 WL 787257 (D. Kan. 1999).

69 F. Supp. 2d 1341 (Hertenstein v. Kimberly Home Health Care, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Willy v. Coastal Corp.
503 U.S. 131 (Supreme Court, 1992)
Kokkonen v. Guardian Life Insurance Co. of America
511 U.S. 375 (Supreme Court, 1994)
Phelps v. Hamilton
122 F.3d 1309 (Tenth Circuit, 1997)
United States v. Hardage
58 F.3d 569 (Tenth Circuit, 1995)
United States v. Hardage
982 F.2d 1491 (Tenth Circuit, 1993)