Cambridge Decision Science v. Markman Capital Insight Llc
74774-6
| Wash. Ct. App. | Mar 20, 2017Background
- Markman (president of Markman Capital Insight, MCI) and Thomas (doing business as Cambridge Decision Science, CDS) negotiated a settlement and mutual release after MCI terminated a joint business (Gemini).
- Thomas sent a proposed written Settlement Agreement and Mutual Release dated October 15, 2015; Markman struck and initialed language in paragraph 3 concerning customer/email list and returned the document with an explanatory email (a clear counteroffer).
- The parties exchanged multiple emails over several days; Thomas repeatedly conditioned acceptance on verification of certain email addresses and other confirmations, and made counteroffers; Markman never accepted those conditions.
- CDS sued to enforce the alleged settlement for $95,000; the trial court granted CDS’s motion to enforce the settlement, dismissed MCI’s counterclaims/third‑party claims, and entered judgment for CDS.
- The Court of Appeals reviewed de novo, found no objective mutual assent to the material term (customer/email verification), held no enforceable settlement agreement existed, and vacated the enforcement and dismissal of MCI’s claims; because the release was conditioned on a valid settlement, the release was ineffective.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a binding settlement agreement was formed | CDS: The parties executed and signed the Oct. 15 documents so settlement is enforceable | Markman: His strikeout/initial constituted a counteroffer; parties never agreed on material email/customer terms | Held: No—no objective mutual assent to all material terms (customer/email verification was material); no contract formed |
| Whether Markman’s modification was accepted | CDS: Acceptance of the modified document concluded the matter | Markman: Thomas never accepted the counteroffer; his replies were further counteroffers/conditions | Held: Markman’s modification was not accepted; Thomas’s responses show continued negotiation, not acceptance |
| Whether the mutual release independently discharged claims | CDS: Release and integration clause show full release of claims | Markman: Release was expressly conditioned on a valid settlement agreement | Held: Release ineffective because it was conditioned on an enforceable settlement that did not exist; MCI’s claims were wrongly dismissed |
| Whether an evidentiary hearing was required before enforcement | CDS: Trial court properly enforced on the written record | MCI: If factual disputes exist, court must hold hearing | Held: Court did not decide this issue (unnecessary given no contract); noted summary‑judgment‑like review applies |
Key Cases Cited
- P.E. Sys., LLC v. CPI Corp., 176 Wn.2d 198 (settlement formation requires objective mutual assent)
- Condon v. Condon, 177 Wn.2d 150 (motion to enforce settlement treated like summary judgment; movant must show no genuine dispute)
- Keystone Land & Dev. Co. v. Xerox Corp., 152 Wn.2d 171 (offer and acceptance framework for contract formation)
- Sea-Van Invs. Assocs. v. Hamilton, 125 Wn.2d 120 (acceptance must be identical to offer)
- Rorvig v. Douglas, 123 Wn.2d 854 (modification that changes terms is counteroffer, not acceptance)
