If You Mediate A Settlement - Stick With the Deal
Appeared in February 13, 2008 edition of The World.
Mrs. McCleery fell on the ice in front of Wally's World and sustained personal injuries. She sued for money damages without a lawyer. However, the Court suggested the case be mediated and both McCleery and Wally hired lawyers to assist. They were able to reach agreement that Wally would pay her $14,000 and Wally would be released from all claims.
Although Walley offered to pay the $14,000, Mrs. McCleery had second thoughts. She said Wally was supposed to pay in 10 days, and didn't, so she wanted to proceed with her lawsuit and seek more money. Wally denied there was any 10 day rule and asked the Court enforce the settlement - which it did. But McCleery wasn't done yet. She asked the court to reconsider in light of her husband's statements, raised for the first time that she was functioning in a diminished capacity due to the fall at the mediation, which gave Wally "an unconscionable advantage." The Court denied this motion, and dismissed McCleery's lawsuit. McCleery appealed, but the Supreme Court threw it out because she didn't properly or timely follow the rules.
McCleery then asked the trial court to reopen the case and enforce the settlement agreement because now the defendants refused to pay the $14,000. She added that her husband had been on medication during much of the hearings and wasn't competent. This time the Court did reopen the case because it's dismissal of the suit didn't specify that the defendant wouldn't have to pay, and the judge believed the McCleerys could have been legitimately confused about the effect of the dismissal.
The Supreme Court reversed. It was unsympathetic to the "dog ate my homework" arguments put forth by McCleery. It ruled the trial court had the authority to reopen the case, but was wrong to do so. Litigation has to end sometime, it ruled. A person can't keep going back to Court until they get the result they want. Moreover, McCleery could have presented their issues in earlier hearings, and appealed from adverse rulings if necessary. Unless McCleery could show some extraordinary circumstance, not of their own making, which cried out for justice, the Supreme Court ruled the trial court was wrong to reopen the case. The McCleery's change of heart came too late. The defendant, it said, didn't have to pay. McCleery v. Wally's World Inc. et al 2007 VT 140.