Stone Creek Custom Kitchens & Design v. Vincent
K16A-01-002 WLW
| Del. Super. Ct. | Dec 2, 2016Background
- Dispute arose from prior proceedings in Justice of the Peace Court, Court of Common Pleas, and this Superior Court appeal concerning alleged claims and counterclaims between Stone Creek (defendant/appellant) and Joseph & Danielle Vincent (plaintiffs/appellees).
- On Sept. 21, 2016 counsel for Stone Creek sent an offer letter proposing to fully resolve the dispute for $5,500, with a deadline to accept by Sept. 22, 2016 at 2:00 p.m.; the letter stated Stone Creek admitted no liability and that a formal settlement agreement would follow.
- The Vincents accepted the offer by email/telephone; Stone Creek counsel represented a formal agreement and draft would follow and asked the court to continue oral argument based on the parties reaching an agreement in principle.
- Stone Creek later delayed producing a draft; when a draft was emailed it included a proposed installment payment schedule which the Vincents rejected; Stone Creek argued timing of payment was a material term not agreed to.
- The Vincents moved to enforce the settlement; Stone Creek conceded agreement on amount but contended absence of a timing term prevented contract formation under the mirror-image rule.
- The Court found a binding settlement for $5,500 existed based on offer and acceptance, supplied a reasonable time for payment (payment in a reasonable time, not installments), granted the Vincents’ motion to enforce, and denied Stone Creek’s motion for reargument as moot.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a binding settlement agreement was formed | Vincents: Stone Creek's Sept. 21 offer and plaintiffs' acceptance created a binding contract | Stone Creek: Omitted timing-of-payment was material; without it no contract under mirror-image rule | Court: Valid settlement formed (offer + acceptance); timing was not a material term |
| Whether the timing of payment is an essential term preventing enforcement | Vincents: Timing was not previously negotiated and thus not material; acceptance bound Stone Creek to pay $5,500 | Stone Creek: Payment timing was material and unresolved, so no meeting of minds | Court: Timing was not material; court will supply a reasonable time for payment |
| Whether a later draft proposing installment payments modified the agreement | Vincents: Draft adding installment schedule was a unilateral attempt to change terms and was rejected | Stone Creek: Draft evidence of intended payment schedule and subsequent negotiations | Court: No evidence of agreed modification; installment proposal was not part of the contract |
| Relief available to plaintiff | Vincents: Court should enforce settlement and order payment of $5,500 within a reasonable time | Stone Creek: No enforceable obligation absent agreed payment term | Court: Granted motion to enforce; ordered settlement for $5,500 payable within a reasonable time; denied Stone Creek’s reargument motion as moot |
Key Cases Cited
- Carlson v. Hallinan, 925 A.2d 506 (Del. Ch. 2006) (elements required to enforce settlement agreements)
- Loppert v. Windsortech, Inc., 865 A.2d 1282 (Del. Ch. 2004) (objective manifestations govern intent to be bound; nonessential terms may be left for later negotiation)
- Martin v. Star Publ'g Co., 126 A.2d 238 (Del. 1956) (if no time for performance is fixed, court will imply a reasonable time)
