In Massachusetts, even if you successfully settle or litigate a negligence action and are awarded damages, receiving the payment of damages can become challenging. This is demonstrated in a recent Massachusetts car accident decision (16-P-1623) that upheld a settlement agreement made between the owners of a farm, the driver of a car, and her husband. The driver was seriously injured after her vehicle collided with two cows from the defendants’ farm that had wandered into the road. The injured woman and her husband filed suit against the owners, which eventually led to mediation. A settlement agreement was reached between the injured couple and the defendant husband. The defendant wife was not present and did not sign the agreement afterward.
A settlement agreement is a contract between two or more parties to settle the pending litigation and release the defendant from future claims. A court ordering the enforcement of an agreement must be confident the parties actually came to an agreement over the essential terms of the settlement. Issues over minor, collateral matters are not detrimental to enforcement. For example, even if there is no deadline specified for when the obligation is to begin, the agreement will remain intact, and a “reasonable” date can be used if it does not change the essence of the contract. Once a settlement agreement is reached, the agreement is reported to the court, which will then decide whether to enter an order to formalize the agreement. Once this occurs, unless there is a determination that the agreement was either unenforceable or materially breached, the parties must follow the terms within the document or face civil penalties for failing to uphold their obligation.
In this lawsuit, the defendants failed to perform their obligations under the agreement. The injured woman and her husband filed a motion requesting the trial court to enforce the agreement. The defendants were given proper notice but failed to attend the hearing to answer or contest the agreement. The judge signed an order formally adopting the agreement, entering a judgment against both defendants for $40,000 to the plaintiffs and $4,364.28 for attorney’s costs and fees, to be paid according to a payment schedule. The agreement also allowed the defendants to finalize a judgment against an unrelated party and for the plaintiffs to pursue the $40,000 from the same unrelated party.