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Stone Creek Custom Kitchens & Design v. Vincent
K16A-01-002 WLW
| Del. Super. Ct. | Dec 2, 2016
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Background

  • 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)
Read the full case

Case Details

Case Name: Stone Creek Custom Kitchens & Design v. Vincent
Court Name: Superior Court of Delaware
Date Published: Dec 2, 2016
Docket Number: K16A-01-002 WLW
Court Abbreviation: Del. Super. Ct.