Cyrus F. Sarvestaney v. Thomas Tallman and Amy Tallman
16-1069
| Iowa Ct. App. | Mar 8, 2017Background
- Sarvestaney sued Amy and Thomas Tallman for negligence after a motor vehicle accident; Tallmans denied liability and counterclaimed fault.
- Plaintiff’s counsel Jenna Green moved to withdraw in April 2016; a revised motion was pending when the parties attended a settlement conference on April 15, 2016.
- On the record at the conference, the parties agreed to a settlement: Sarvestaney would receive $6,500 and sign a release; the court memorialized the agreement on the record.
- Green later withdrew; Sarvestaney proceeded pro se and filed a motion (May 9, 2016) to set aside the settlement, alleging inadequate representation, insufficient payment, and judicial coercion.
- The district court denied the motion to set aside, finding no mutual mistake, fraud, or improper conduct by counsel or the court, and granted defendants’ motion to enforce the settlement; Sarvestaney’s motions to reconsider were denied.
- Sarvestaney appealed; the Court of Appeals reviewed whether the district court erred in enforcing the settlement and affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the settlement should be set aside | Green failed to represent Sarvestaney; settlement paltry; court pressured him | Settlement was voluntary, on-the-record, and enforceable; no fraud or mutual mistake | Denied; settlement enforced |
| Whether mistake, fraud, or misrepresentation vitiated the agreement | Implicit claim about counsel’s conduct; no specific fraud alleged | No fraud, misrepresentation, or mutual material mistake | No adequate grounds shown |
| Whether judicial coercion occurred at settlement conference | Court pressured plaintiff to accept terms | Record shows court simply memorialized parties’ agreement | No coercion; plaintiff expressly agreed on the record |
| Standard for disturbing voluntary settlements | Settlements should not be disturbed for ordinary legal mistakes | Settlement-as-contract; only fraud/mutual material mistake justify setting aside | Voluntary settlements upheld; ordinary legal mistakes insufficient |
Key Cases Cited
- Strong v. Rothamel, 523 N.W.2d 597 (Iowa Ct. App. 1994) (standard of review for enforcing settlements)
- Gilbride v. Trunnelle, 620 N.W.2d 244 (Iowa 2000) (district court authority to enforce settlements in pending cases)
- Phipps v. Winneshiek Cty., 593 N.W.2d 143 (Iowa 1999) (settlement agreements treated like contracts; grounds to set aside)
- Wright v. Scott, 410 N.W.2d 247 (Iowa 1987) (mutual, material mistake of present/past fact required to set aside settlement)