In Susan Early v.
Carnival Corporation, 2013 U.S. Dist. LEXIS 16711 (decided February 7,
2013), the parties mediated a liability case in November and believed that they had
reached a settlement agreement. Specifically, the parties agreed that the
defendant would pay plaintiff an undisclosed sum, that each party would be
responsible for its own fees and costs, that plaintiff would execute a
release, and that defendant would be responsible for the mediator's fees. The
parties could not agree, however, on the issue of whether an MSA was required,
but they did "agree" to submit the issue to the court for resolution. The
mediator believed the case settled and noted this to the court, and the parties
then filed their respective arguments that an MSA was (or was not)
required.
Upon a review of
the issue, the court found that no settlement agreement had been created. Under
Florida law, settlements must "be sufficiently specific and mutually agreeable
on every essential term," and an agreement to agree is not enough (Id.
at *4). Ultimately, an agreement to disagree was not enough, either.
The court refused to create an essential settlement term - in this
case, whether or not to include an MSA in the settlement - and it refused
to issue an advisory opinion. This case was not one in which the parties had
agreed upon an MSA and needed the court's assistance as to the amount of the
MSA, nor was it one in which the parties had an agreement but, after the
fact, disagreed as to whether the settlement included an MSA. Thus, no
agreement existed and the court declined to assist the parties in creating
one.
It is important
to note that, in many ways, this is a decision about procedure. The court notes
that, in this case, the MSA (or lack thereof) is an essential term of an
enforceable settlement agreement. The court's refusal to create an essential
settlement term does not mean that the court will never assist the
parties on this issue, however. It is simply premature to do so at this stage
of the proceedings. If the case's remaining issue in dispute - whether or not Medicare's
future interests need to be protected - cannot be resolved by agreement between
the parties, it can be resolved by the court on March 25, 2013, when the case
goes to trial.