476 F. App'x 756
5th Cir.2012Background
- Harmon was employed in Journal Publishing’s press department for ~3 years and was terminated for excessive absences in April 2007; she filed a Title VII suit in July 2008 alleging sexual harassment and retaliation.
- The district court scheduled trial for November 30, 2009; after limited discovery, a final pretrial conference on November 4, 2009 discussed settlement.
- Settlement was reached for $9,600 on November 14, 2009 through communications between counsel, with Harmon’s counsel believed to have full authority.
- Journal Publishing tendered a release and settlement check to Harmon’s counsel on November 24, 2009; Harmon later refused to accept the settlement.
- Settlement remained unresolved; Journal Publishing again delivered the release and check to Harmon’s counsel on February 9, 2010; Harmon continued to refuse, and counsel withdrew in June 2010.
- Journal Publishing moved to enforce the settlement on August 9, 2010; Harmon, pro se, later discussed the settlement but maintained nonconsent; the district court held an evidentiary hearing and enforced the settlement, finding Harmon’s counsel had general authority to settle.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court properly enforced the settlement despite Harmon’s claimed lack of consent. | Harmon contends her counsel lacked authority or she did not consent. | Journal Publishing asserts counsel had general authority to settle; district court found authority after hearing. | yes, district court did not abuse discretion and enforcement affirmed. |
Key Cases Cited
- Mid-South Towing Co. v. Har-Win, Inc., 733 F.2d 386 (5th Cir. 1984) (burden on opponent to show invalidity; evidentiary hearing required to challenge validity of settlement)
- Bell v. Schexnayder, 36 F.3d 447 (5th Cir. 1994) (inherent power to recognize, encourage, and enforce settlements; abuse of discretion standard)
- In re Volkswagen of Am., Inc., 545 F.3d 304 (5th Cir. 2008) (en banc; standard for abuse of discretion in enforcing settlements)
- Fulgence v. J. Ray McDermott & Co., 662 F.2d 1207 (5th Cir. 1981) (federal-law standard for enforceability of settlements in Title VII actions)
- Del Bosque v. AT&T Adver., L.P., 441 F. App’x 258 (5th Cir. 2011) (appeal on whether district court addressed merits vs. enforceability of settlement)
- Callen v. Pa. R.R. Co., 332 U.S. 625 (1948) (burden on party challenging settlement validity; authority of attorney presumed)