In Neeld v. Combs, Case No. 5D2023-1803, 2025 Fla. App. LEXIS 1201 (Fla. 5th DCA Feb. 14, 2025), the trial court determined that the parties' settlement agreement was unenforceable, allowing the plaintiff to withdraw his settlement proposal over four months after acceptance based on an alleged mistake the plaintiff had made with regards to settlement amount. However, the appellate court found that a binding settlement agreement was formed where a proposal for settlement was expressly made pursuant to the provisions of section 768.79 and rule 1.442, signed by plaintiff's counsel, e-filed with the court, e-served on defendant's counsel, and timely accepted by defendant in writing. The appellate court found that the settlement agreement could not be set aside based on the fact that proposal for settlement was the product of a unilateral mistake, as an agreement made pursuant to section 768.79 essentially operates as a consent judgment and common law methods for attacking contract formation are not available to unwind those agreements. The appellate court found no legal basis to allow plaintiff to withdraw his proposal for settlement or set aside defendant's acceptance. The argument that plaintiff's counsel lacked authority to settle for stated amount was rejected, because the proposal was signed and served by counsel and notice of service was filed with trial court, showing objective evidence of counsel's authority to make the proposal existed. The appellate court also noted that the plaintiff offered no objective evidence supporting his assertion that counsel lacked authority and whether plaintiff subjectively intended a different settlement amount is irrelevant to the analysis.
This case may seem basic, but our office has seen an increase in parties looking to back out of the settlement agreements they enter into, claiming the exact same defenses. If you submit a Proposal for Settlement to the other side and it is accepted, you are bound by that offer. Conversely, if you make an offer for settlement and this is advised to the trial court, it will be upheld, with the possibility of fees and costs being assessed if the settlement agreement is wrongfully repudiated by the offeror or offeree.
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