Effective 1/1/2021, Section 664.6 Allows A Litigant’s Attorney To Orally Stipulate To A Settlement On The Record.
Lemon law plaintiff was not happy with a lower court’s ruling that found a binding oral, on-the-record settlement which was reached with defendants by her attorneys to settle the case for $100,000 inclusive of attorney’s fees through an MSC ZOOM session which was recorded in stenographic and audio formats. She argued before the lower court that the settlement was “exclusive” of fees; after a 4-day evidentiary hearing, the lower court agreed with the defense that the settlement was enforceable and that it was “inclusive” of fees. Plaintiff appealed in Greisman v. FCA US, LLC, Case No. A166919 (1st Dist., Div. 2 Aug. 5, 2024) (partially published), but the appellate court affirmed the settlement decision by the lower court.
The legal issue resulting in publication was that, effective January 1, 2021, CCP § 664.6 allows a litigant’s attorney to sign a binding settlement stipulation or orally stipulate on the record that a settlement was reached, abrogating the former rule that litigants had to endorse the settlement under the Levy decision which was superseded. With respect to whether substantial evidence supported the lower court’s conclusion, it did: the lower court credited the court reporter’s stenographic and audio evidence that “inclusive” was the word used. Not to mention that the lower credited the MSC judge’s statement on the record that the settlement for $100,000 was reached despite whatever terms plaintiff reached with her attorneys between themselves.
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