Settlement of disciplinary arbitration must be in writing to be enforced by a court

Settlement of disciplinary arbitration must be in writing to be enforced by a court
Marpe v Dometsch, 256 AD2d 914

Sometimes the parties to a grievance or disciplinary proceeding agree to “settle” the matter. The terms of the settlement may be read into the record at an administrative hearing or before an arbitrator or the parties may simply “sign an agreement of settlement.” The Marpe case shows that the settlement of a pending lawsuit must follow a more formal procedure.

Terri L. Marpe sued Paul Dometsch and Capital Area Community Health Plan Inc. [CHP], alleging that sexual harassment and negligence arising out of psychiatric treatment provided by her supervisor, Paul Dometsch. During a pretrial deposition with her attorney, Marpe and CHP entered into an on-the-record oral stipulation of settlement providing that Marpe would execute a written release and confidentiality agreement in exchange for CHP’s agreement to pay her a specified sum of money. CHP forwarded the proposed settlement papers to Marpe but she refused to sign them. When a State Supreme Court justice denied CHP’s motion to enforce the stipulation of settlement, it appealed.

The Appellate Division affirmed the lower court’s determination, commenting that “a stipulation of settlement is not enforceable unless it is made in open court, reduced to a court order and entered, or contained in a writing subscribed by the parties or their attorneys.” Since the stenographic record created at the deposition was made outside the presence of a judge, the Appellate Division ruled that it was insufficient to satisfy the requirements of Section 2104 of the Civil Practice Law and Rules.
NYPPL