Seymour v. Hug

413 F. Supp. 2d 910, 2005 U.S. Dist. LEXIS 40604, 2005 WL 3019418
CourtDistrict Court, N.D. Illinois
DecidedNovember 10, 2005
Docket04 C 2041
StatusPublished
Cited by4 cases

This text of 413 F. Supp. 2d 910 (Seymour v. Hug) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seymour v. Hug, 413 F. Supp. 2d 910, 2005 U.S. Dist. LEXIS 40604, 2005 WL 3019418 (N.D. Ill. 2005).

Opinion

MEMORANDUM OPINION AND ORDER 1

COLE, United States Magistrate Judge.

INTRODUCTION

This case has its genesis in Donna L. Seymour’s unsuccessful attempt to purchase a home in a suburb of Chicago from realtors, Roger and Carol Hug, Patricia Brown-Wyrick and H & H Realty, Inc. (collectively “Realtor Defendants”), and Cendant Mobility Corp. and Curtis and Carol Castle (collectively “Owner Defendants”). According to Ms. Seymour, although she had successfully negotiated a contract for the purchase of the home, the defendants “sold it out from under her” when they discovered she was African-American. On March 18, 2004, Ms. Seymour filed a complaint alleging unlawful discrimination against her on the basis of race in violation of the Fair Housing Act, 42 U.S.C. §§ 3604, 3605, 3617, and breach of contract under Illinois state law. A week later, she amended her complaint, and she did so again on August 20, 2004. Discovery ensued as did intensive settlement discussions.

On May 24, 2005, the parties filed a Joint Status Report, stating that they “were in the process of finalizing an agreed settlement,” and that they had “agreed in principle to a settlement of all claims. A condition of the settlement is that plaintiff must seek approval from the Surrogate’s Court in New York, the state of residence of plaintiff and her children, in order to procure a valid release of any potential claims of her minor children.” (Id.). 2 On June 20, 2005, counsel for certain of the defendants reported at a status hearing that the case was settled, and that the execution of the formal settlement agreement by all parties was imminent. Accordingly, I dismissed the case with leave to reinstate within 60 days in the event of any unanticipated problem and retained jurisdiction to enforce the settlement agreement. 3

*913 Apparently, over the course of the next week, the defendants concluded that they had been had — and rather badly at that— by the plaintiff and her lawyers. They demanded that Ms. Seymour make further application to the Surrogate’s Court and provide the Court with the information they insisted she had withheld. The plaintiffs lawyers refused. On June 29, 2005, Ms. Seymour filed this present Motion to Enforce the Settlement Agreement or, in the Alternative, to Vacate Dismissal, Reinstate Case, and Enter Judgment on the Agreement. On July 15, 2005, the defendants filed a Cross Motion to Enforce Settlement and For Fees, in which they contend that Ms. Seymour failed to comply with the terms of the parties’ March 14, 2005 settlement agreement. The motion argued that Ms. Seymour and her lawyers had deceived the defendants and the Surrogate’s Court in New York into approving the settlement of the instant case and authorizing a release of the claims of Ms. Seymour’s children. 4 Ms. Seymour’s view of the matter is, predictably, quite different. She denies that there was any settlement on March 14th and insists that the settlement is that contained in a document prepared by the defendants on April 28, 2005, which required that she obtain a release of the childrens’ claims. For her, form is substance, and having obtained on May 20, 2005 an order of the Surrogate’s Court approving the settlement and releasing any claims of her children, her obligations have been fulfilled.

The difficulty, however, is that form is not substance, and Ms. Seymour’s contention that she has complied with the terms of the settlement agreement merely by securing an order of the Surrogate’s Court, regardless of the circumstances under which the order was obtained, is plainly mistaken. Under New York law, the Surrogate’s Court had to be “fully apprised” of all the relevant facts and cir *914 cumstances in order to make an informed determination of whether the approval of the settlement was in the children’s “best interest.” Unless that occurred, the defendants would be subject to precisely the risks of future litigation by Ms. Seymour’s children that the settlement agreement was designed to avoid. Only the “latitudinarian attitude of Alice in Wonderland towards language,” National Mutual Insurance Co. v. Tidewater Transfer Co., 387 U.S. 582, 69 S.Ct. 1173, 93 L.Ed. 1556. 654 (1949)(Frankfurter, J., dissenting), could support the plaintiffs contention that the petitions Ms. Seymour filed in New York fully and properly informed the Court of the nature of the children’s claims and the allegations made by Ms. Seymour in the underlying action. The disquieting reality is that the Surrogate’s Court was ill-served by Ms. Seymour and her legal advisors, and that by failing to comply with New York law in her presentation to the Surrogate’s Court, Ms. Seymour breached the settlement agreement she made with the defendants.

I.

FACTUAL BACKGROUND

A.

The Complaints, Discovery, And Early Settlement Demands

All of Ms. Seymour’s pleadings repeatedly referred to her “family” and “children.” The complaint and amended complaint charged that she “celebrated with her children having successfully negotiated for their new home.” (Compl., at ¶ 60; Am. Compl., at ¶ 57). She also alleged that she brought her children to see the home. (Am. Compl., at ¶ 49). All three versions of her complaint alleged that the defendants’ actions caused Ms. Seymour “and her family economic injury, consequential damages and personal harm,” (Compl., at ¶¶ 77, 80, 82, 84; Am. Compl., at ¶¶ 102, 105, 107, 109; 2nd Am. Compl., at ¶¶ 111, 114, 116, 118)(emphasis supplied), and requested compensatory and punitive damages “for discrimination against her and her children. (Compl., at ¶ 84 Prayerd; Am. Compl., at ¶¶ 102 Prayer (d), 105 Prayer (d), 107 Prayer (d); 2nd Am. Compl., at ¶¶ 111 Prayer (d), 114 Prayer (d), 116 Prayer (d))(emphasis supplied).

Consistent with these allegations of harm to her children, in the complaints, Ms. Seymour demanded in August 2004 that in addition to payment of $150,000 in damages to her, her two children were entitled to $50,000 “to compensate them for defendants’ illegal actions, and the resulting emotional distress.” (Defendants’ Brief, Ex. B). Ms. Seymour’s insistence that her children were harmed by the defendants’ actions — and thus had their own claims — continued into discovery. When asked at her deposition in December 2004 to explain what damages were being claimed, Ms. Seymour said that it had been “a very painful experience for myself, for my children,” and that she relocated “my family because of this occurrence.” (Defendants’ Br. Ex. C at 34). When counsel for the owner defendants, asked if Ms. Seymour understood that her children were not party to this lawsuit, Ms. Seymour responded that while her children were not parties, “my children have been affected by the discrimination that this lawsuit is about....” Id. at 35.

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Cite This Page — Counsel Stack

Bluebook (online)
413 F. Supp. 2d 910, 2005 U.S. Dist. LEXIS 40604, 2005 WL 3019418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seymour-v-hug-ilnd-2005.