Parties in a commercial dispute reached an oral agreement in mediation, but the lack of a signed settlement agreement resulted in litigation. The New Jersey Supreme Court ultimately upheld the oral agreement, but established a requirement that future mediated settlements must be written agreements signed before the mediation ends. The Court noted that the plaintiff could have avoided enforcement of the oral agreement simply by relying on the confidentiality of mediation. Instead, the plaintiff engaged...
Applying Ohio and Sixth Circuit law, a federal court in Ohio upheld an oral settlement agreement reached in mediation, even though plaintiffs changed their minds after mediation and refused to sign a written agreement. The court found that an agreement had been reached in mediation because settlement was reported to the court by the mediator and was confirmed by plaintiffs’ counsel asking for more time to obtain signatures. However, plaintiffs had forgotten to ask that their credit history be cleaned...