John Deere Co. v. a & H EQUIPMENT, INC.

876 P.2d 880, 241 Utah Adv. Rep. 17, 1994 Utah App. LEXIS 90, 1994 WL 250488
CourtCourt of Appeals of Utah
DecidedJune 9, 1994
Docket920774-CA
StatusPublished
Cited by17 cases

This text of 876 P.2d 880 (John Deere Co. v. a & H EQUIPMENT, INC.) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John Deere Co. v. a & H EQUIPMENT, INC., 876 P.2d 880, 241 Utah Adv. Rep. 17, 1994 Utah App. LEXIS 90, 1994 WL 250488 (Utah Ct. App. 1994).

Opinions

OPINION

Before BENCH, BILLINGS and GREENWOOD, JJ.

GREENWOOD, Judge:

This dispute involves the judicial enforcement of a settlement agreement. John Deere Company (Deere) asserts that the parties mutually agreed to settle this case and thus that the trial court properly ordered A & H Equipment, Inc. (A & H) to comply with that agreement. On the other hand, A & H argues that the parties were in the midst of negotiating the terms of the settlement agreement when Deere made, and the trial court granted, the motion to have the trial court judicially enforce Deere’s proposed settlement agreement. We affirm.

BACKGROUND

Deere initially brought this civil action against A & H1 on June 20, 1989, to collect monies which A & H owed to Deere on an open account. A & H filed a cross-complaint against Deere alleging breach of the parties’ franchise agreement and other tortious acts. The trial court entered judgment on September 21, 1992 in favor of Deere, after hearing oral argument on both Deere’s and A & H’s motions to enforce their respective interpretations of the settlement agreement. A & H appealed this order to the Utah Supreme Court on September 23, 1992, which subsequently poured the case over to this court for disposition.

Beginning in 1963, Deere established a franchisor-franchisee relationship with A & H. Deere granted to A & H an exclusive franchise territory covering six counties in [882]*882Central Utah. The franchise arrangement also required A & H to enter into various agreements with Farm Plan, Inc. (Farm Plan), a sibling corporation to Deere in that they share a common parent corporation, but nonetheless a separate and autonomous corporation. Farm Plan is the financing arm of Deere, through which many of A & H’s customers financed their purchases of farm machinery.

Prior to 1989, A & H, in the midst of serious financial setbacks, defaulted on some of the agreements with Deere and Farm Plan. Consequently, Farm Plan brought suit against A & H for breach of its agreements with. Farm Plan.2 On June 1, 1989, the trial court entered judgment for Farm Plan against A & H in the amount of $36,062.47 plus interest and costs.3

Nineteen days later, on June 20, 1989, Deere filed the present suit against A & H, alleging that A & H had defaulted on various obligations under the franchise agreement. A & H counterclaimed against Deere, alleging that it had breached the franchise agreement and had committed other tortious acts.

Almost two years later, A & H instructed its attorney, David Lambert, to try and settle the case. At this point, the parties’ versions of the facts diverge. A & H claims that it intended for Lambert to obtain a release from Deere on all “John Deere-related matters,” which it asserts included a release from the outstanding judgment held by Farm Plan.4 Deere viewed the scope of the settlement agreement as a release of all claims by the single entity John Deere Company against A & H, but not a release of all claims by the John Deere family of corporations, which would have included Farm Plan.

' Lambert initially wrote a letter to Deere’s counsel, stating, “I have been asked by my client to propose a settlement with your client in the above referenced case.5 The settlement proposal is a mutual dismissal with prejudice and a general release of claims with each party to bear their respective costs and fees.” Deere’s counsel accepted A & H’s offer by telephone on April 15, 1991. A week later, on April 22, 1991, Deere’s counsel sent a letter confirming the earlier telephonic acceptance, stating, “This will confirm my telephone conversation of April 15, 1991, in which I accepted your settlement proposal contained in your letter of April 10, 1991. I will prepare the settlement documents and forward them to you for execution.” Deere’s attorney thereafter prepared the settlement documents and sent them to Lambert, on May 8, 1991, to obtain A & H’s signature.

Lambert forwarded the settlement agreement to A & H for signature by its corporate officers. After reviewing the agreement, A & H advised Lambert that it wanted to incorporate into the settlement agreement a release from the Farm Plan judgment as well. After a period of approximately two months, Deere’s attorney wrote Lambert, on July 18, 1991, inquiring as to the delay in obtaining signatures on the settlement agreement. Lambert, responding by letter dated July 29, 1991, requested that Deere include language in the settlement agreement releasing A & H from the Farm Plan judgment. That letter stated, in relevant part:

My client is concerned about making sure that the Mutual Release of All Claims comprehensively releases him from any obligations to John Deere. Specifically, my [883]*883client would like to add John Deere Farm Plan as a releasing party. Please let me know if that is acceptable so that we can get this matter finalized.

Thereafter, Deere’s counsel phoned Lambert and related his client’s refusal to include the requested language. Deere thereafter filed a motion in the trial court to enforce the settlement agreement originally proposed by A & H. A & H filed a cross-motion to have the court enforce A & H’s proposed settlement agreement (i.e. a release of Deere’s claims and the Farm Plan judgment) and requested oral argument. On August 28, 1992, the trial court heard oral argument on the pending motions. Subsequently, it issued a memorandum decision granting Deere’s motion to enforce the settlement agreement, denying A & H’s motion, and requiring A & H to execute the settlement documents prepared by Deere’s counsel. A & H now appeals from the trial court’s decision.

ISSUES

A & H asserts that the trial court erred by enforcing the settlement' agreement because (1) the parties failed to have a meeting of the minds on the specific terms of the settlement agreement, (2) it was not previously filed with, or entered upon the minutes of, the trial court, (3) even if it was enforceable, the agreement should be rescinded because A & H’s attorney unilaterally erred when proposing the settlement to Deere, and (4) its terms were ambiguous.

STANDARD OF REVIEW

Generally, a trial court’s summary enforcement of a settlement agreement “ 'will not be reversed on appeal unless it is shown that there was an abuse of discretion.’ ” Zions First Nat'l Bank v. Barbara Jensen Interiors, Inc., 781 P.2d 478, 479 (Utah App.1989) (quoting Mascaro v. Davis, 741 P.2d 938, 942 n. 11 (Utah 1987)). In arriving at its decision to enforce the settlement agreement, the trial court concluded that Deere and A & H had a meeting of the minds and that the settlement agreement was unambiguous. As to these issues, whether a contract exists between parties is a question of law which we review for correctness. Herm Hughes & Sons, Inc. v. Quintek, 834 P.2d 582, 583 (Utah App.1992). In addition, whether contractual language is ambiguous is a question of law, also reviewed for correctness. Equitable Life & Casualty Ins. Co. v. Boss,

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John Deere Co. v. a & H EQUIPMENT, INC.
876 P.2d 880 (Court of Appeals of Utah, 1994)

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Bluebook (online)
876 P.2d 880, 241 Utah Adv. Rep. 17, 1994 Utah App. LEXIS 90, 1994 WL 250488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-deere-co-v-a-h-equipment-inc-utahctapp-1994.