Motion to Enforce Settlement Agreement: Step-by-Step

Most debt collection lawsuits settle before trial. Both parties sign a settlement agreement when that happens. A settlement agreement is a legally binding written document. It shows both parties agreed to a particular outcome.

In most cases, the defendant agrees to pay money owed. The plaintiff forfeits the right to take further legal action. A settlement agreement ends disputes between both parties.

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However, one party may fail to fulfill the agreement terms. Here are common reasons why:

The party recognizes a bad bargain in the settlement
The defendant lacks the money to pay the agreed sum
Circumstances change after signing, affecting the settlement value
One party willingly breaches the settlement agreement terms

You can our partner Solo helps you respond to debt collection lawsuits quickly. It’s frustrating to reach a settlement only for one party to breach. When this happens, you might seek further legal action. You can hold the opposing party responsible for breaching the settlement.

Resolving Breach of Settlement Agreements

Breach of settlement agreements have three primary remedies:

Amending the pleadings to allege the settlement as an executory accord
Initiating a separate action for breach of the settlement agreement
Filing a motion to enforce the settlement agreement

The first two options aren’t ideal. You’ll incur additional expenses and delays. Filing another lawsuit means starting from scratch. You’ll spend more time and money on the case.

Filing a motion to enforce a settlement agreement is preferable. It’s simpler and more efficient than the other options. Motions to enforce occur via motion practice instead of new lawsuits.

When you file a motion to enforce the settlement agreement, there’s no need to amend pleadings. The motion accomplishes the same result. You can only commence a new action if the original court lacks jurisdiction.

Proving the Settlement Breach

When filing a motion to enforce the settlement agreement, you must prove two things. First, you need to show the settlement occurred. Second, you need to show the opposing party breached it.

You should file the motion before the original court. The court knows the procedural background of your case. The judge may have even participated in the settlement discussions.

You can ask the court to enter a judgment according to the settlement terms. The judge may examine the evidence presented. The judge will listen to oral testimony and resolve factual disputes.

Suppose the judge finds the settlement terms clear. In that case, the judge may enter a judgment pursuant to the agreement. The court gives you power over the party that breached.

How to File a Motion to Enforce Settlement Agreement

In most cases where parties sign a settlement agreement, courts take action. The court usually enters an order dismissing the case. Or the court places it in an inactive file.

You may first need to file a motion requesting reinstatement. The motion asks the court to vacate the earlier dismissal order. Or it asks to reinstate the action.

Required Supporting Documents

If you’re filing the motion to enforce the settlement agreement, gather these documents. The following supporting documents should accompany your short motion:

A notice of motion
The motion itself
Proposed order
Memorandum
An affidavit setting forth the facts

Submission of a proposed order may not be necessary for some courts. The requirement depends on the jurisdiction. Confirm with the court clerk if you need to include a proposed order.

You should seek both reinstatement and enforcement in a combined motion. Don’t file separate motions to vacate and reinstate. If the court denies the motion to enforce, you can reopen the original action.

Strengthening Your Motion With Evidence

Ensure you include affidavits from the opposing party. Include affidavits from other individuals who negotiated or witnessed the settlement. Information like this helps determine whether the settlement exists.

Affidavits establish the settlement’s credibility. They discourage the opposing party from denying the claim. Affidavits often eliminate factual disputes. They make enforcement more likely according to the stipulated terms.

If you’re the movant of the motion, obtain the hearing date early. Get the time from the court before serving the motion. Suppose the court is reluctant to schedule a hearing before service. In that case, press the court to schedule immediately after filing.

The Hearing Day

On the hearing day, arrive with witnesses and exhibits. Bring everything necessary to prove your claim. The opposing party might contest the motion at the hearing.

If you’re the party opposing the motion, inform the court immediately. Tell the court you didn’t reach or agree to the settlement. You can prove the counsel or agent lacked authority to agree.

Suppose the judge rules in favor of the party filing the motion. In that case, the party may recover the settlement amount. The party may also recover damages for the opposing party’s failure. Damages may include court costs and attorney’s fees associated with the case.

Making a Debt Settlement Agreement

If you’re dealing with debt and want to make a settlement, follow these tips. Proper preparation helps you reach a favorable agreement.

Identify the Debt Owner

Determine who owns your collection account. Check mail bills or the Annual Credit Report website. You need to know who you’re negotiating with.

Negotiate a Settlement

Brush up on negotiation skills to make a deal. Start with a low offer, around 4-5 cents on the dollar. Work your way up from there.

Formalize the Agreement

After reaching a deal, get a written debt settlement agreement. Include creditor names, agreement date, and your details. Include the settlement amount and payment plan terms.

Consider the Pros and Cons

Settlement lets you pay less and clear debt faster. However, it may impact credit scores. You might incur taxes on forgiven debt.

When dealing with debt collection lawsuits or settlements, our partner Solo can help you respond quickly. You can prepare your answer and negotiate a settlement efficiently.

Frequently Asked Questions

What is a motion to enforce settlement agreement?

A motion to enforce settlement agreement is a legal filing that asks the court to hold a party accountable when they breach the terms of a signed settlement. It's filed with the same court that handled the original case, and it's more efficient than starting a new lawsuit for breach of contract.

How do I file a motion to enforce a settlement agreement?

File a short motion with the original court requesting reinstatement of the action and enforcement of the settlement. Include a notice of motion, the motion itself, a proposed order, memorandum, and an affidavit setting forth the facts. Attach affidavits from witnesses who negotiated or witnessed the settlement to strengthen your case.

Can I recover attorney's fees when enforcing a settlement agreement?

Yes, if the judge rules in your favor, you can recover both the settlement amount and damages for the opposing party's failure to pay. Damages typically include court costs and attorney's fees associated with enforcing the settlement agreement.

What happens if the other party contests the motion to enforce?

If the opposing party contests the motion, they must inform the court they didn't reach or agree to the settlement. They can prove the counsel or agent who agreed lacked authority. You should arrive at the hearing with witnesses and exhibits to prove your claim and counter their objections.

What are the alternatives to filing a motion to enforce settlement?

You have two other options: amending the pleadings to allege the settlement as an executory accord, or initiating a separate action for breach of the settlement agreement. However, both options require more time and money, making a motion to enforce the preferred choice.