|
Under Texas law, a party to a settlement agreement reached through court-referred mediation can revoke his or her consent to the agreement any time before entry of judgment on the settlement, according to the Texas Court of Appeals.
In Topham v. Patterson, No. 10-06-00101-CV, 2007 WL 2051864 (Tex. App. July 18, 2007), Topham brought suit against Patterson to quiet title to a parcel of land. The trial court referred the parties to mediation, which resulted in a settlement agreement signed by the parties. Patterson then moved for an agreed judgment pursuant to the mediation settlement, to which Topham had already withdrawn his consent. The trial court granted the agreed judgment despite Topham's withdrawal of consent. Topham appealed the judgment, alleging that the judgment was granted in error after his consent was withdrawn, and that Topham's subsequent motion for a new trial on the matter was improperly denied.
The Court reversed the trial court's judgment, holding that Topham's withdrawal of consent made the entry of judgment improper. The Court observed that Texas law clearly states that a party to a settlement agreement may withdraw consent to a settlement agreement at any time before a court renders judgment on the agreement. While this particular settlement was the result of court-referred mediation, the Court noted that this fact "does not impact a party's ability to withdraw consent" before a judgment is entered.
The Court did state, however, that Patterson may have a cause of action for breach of contract because of Topham's withdrawal of consent to the settlement agreement. But, without proof or proper pleading, the Court refused to determine whether Patterson could sustain such a claim, or whether Topham had a valid defense to such a claim.
Subscribe to a free weekly update on ADR case law and
legislation
|