The lawyers negotiate the settlement of a case by e-mail. Then, when it is time to execute the written settlement agreement, the plaintiff backs out. Is there a binding agreement? The answer is – of course. A settlement agreement is a contract – it does not need to be in writing to be enforceable.
But wait, the lawsuit involves the purchase of real property. Every lawyer knows that the Statute of Frauds requires a contract to purchase real estate to be in writing to be enforceable.
But, the Court of Appeals says, although the underlying lawsuit involves real estate, the settlement is an agreement to settle a lawsuit. That agreement is not subject to the statute of frauds.
Actually, this case could have been decided on another basis. There was no dispute with respect to the attorney’s authority to settle the case on behalf of the client. The opinion shows that the attorneys exchanged e-mails during the course of settlement negotiations, and the final confirmation of the settlement was sent by e-mail. Therefore, the e-mails satisfied the requirements of the Statute of Frauds for a memorandum in writing signed by the party or a lawfully authorized representative.
See Waddle v. Elrod, M2009-02142-COA-R3-CV (Tenn. Ct. App. Apr. 29, 2011)
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