Sunday, April 25, 2010

FL law: Proposal for Settlement to Multiple Parties Not Enforceable

Florida Supreme CourtImage via Wikipedia

The Florida Supreme Court ruled in Attorney’s Title Insurance Fund, Inc., v. Joseph W. Gorka, (SC09-1899)that a a proposal for settlement is invalid if it is conditioned upon actions out of the control of the offeree.

From the opinion:

The issue presented by the conflicting decisions is whether a joint offer of settlement or judgment that is conditioned on the mutual acceptance of all of the joint offerees is valid and enforceable. We approve the decision of the Second District Court of Appeal and hold that this type of joint offer is invalid and unenforceable because it is conditioned such that neither offeree can independently evaluate or settle his or her respective claim by accepting the proposal. The conditional nature of the offer divests each party of independent control of the decision to settle, thereby rendering the offer of judgment invalid and unenforceable.

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