Tuesday, March 5, 2024

Nonsignatory Attorneys Bound by Settlement Agreement?

In a recent decision out of Florida's Fourth District Court of Appeal on cases 4D2022-3194 and 4D2022-3438, an attorney that did not enter an appearance, nor sign either settlement agreement at issue, authored a blog post commenting about the outcome of the underlying litigation and remarking negatively about one of the parties. The trial court hearing a claim for breach of contract then reasoned that the lawyer was bound by the settlement agreements' plain language, recognizing that Florida law does not require a signature as a prerequisite to be bound by a contract. The trial court also found that the blogging lawyer's undisputed conduct breached the settlement agreements' applicable confidentiality and non-dissemination provisions. On appeal, the sole issue as defined by the appellate court was a narrow one: whether the nonsignatory attorney to the settlement agreements that his clients signed, is bound by the settlement agreements because they include provisions purporting to bind the lawyer specifically by name or by his role as "counsel" or "attorney." The 4th DCA answered this question in the negative from a purely contractual standpoint. While it may be true that the lawyer negotiated the settlement agreements, transmitted them to his clients for their signatures, returned the settlement agreements to the attorney representing them in court, and benefited from the settlement agreements, these are customary actions performed by attorneys. Because the blogging lawyer did not sign the settlement agreements, is not named as a party, and did not manifest consent to be bound, the appeals court found that he is not bound, and the trial court erred by granting summary judgment in favor in the breach of contract lawsuit. See more here-- https://tinyurl.com/eye7xme9 and https://tinyurl.com/2np7rp4