Determining if a settlement agreement is binding
A settlement agreement signed by an attorney may bind a
client even where it exceeds the attorney's actual authority, if the attorney
had apparent authority to enter into the agreement (see Hallock v State of New
York, 64 NY2d 224, 230 [1984]; Popovic v New
York City Health & Hosps. Corp., 180
AD2d 493 [1st Dept 1992]).
Under the relevant circumstances in this action, plaintiffs' attorney had, at
least, apparent authority to enter into the settlement agreement, and it is
binding upon plaintiffs (see Hallock, 64 NY2d at 231). The Appellate
Division also opined that plaintiffs implicitly ratified the settlement
agreement by making no formal objection for nearly two years before asserting
that the attorney's acceptance was unauthorized (see Hawkins v City of New York, 40 AD3d 327).
Further, said the court, plaintiffs were unable to demonstrate that the
settlement agreement was the result of fraud, collusion, or mistake. Click on the URL below to access this decision
posted on the Internet:
https://www.nycourts.gov/reporter/3dseries/2023/2023_00174.htm
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New York Public Personnel Law Blog Editor Harvey Randall served as Principal Attorney, New York State Department of Civil Service; Director of Personnel, SUNY Central Administration; Director of Research, Governor’s Office of Employee Relations; and Staff Judge Advocate General, New York Guard.
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