|
A New Jersey state court enforced a mediated settlement agreement because evidence did not support a participant's claim that the settlement was obtained under duress.
In Paciorkowski v. Minichiello, 2007 WL 506318 (N.J. Super. Ct. App. Div. Feb. 20, 2007), Minicheillo moved to have a court-annexed mediation settlement set aside as unenforceable. The parties' dispute revolved around Minicheillo's alleged embezzlement of funds and fraudulent accounting practices.
Minicheillo argued that the settlement was unconscionable and that he signed the agreement under duress. He claimed that the opposing party and his attorney threatened him by alluding to the costs of litigation if the matter did not settle and claiming that he must settle to avoid criminal prosecution for fraud. Additionally, Minicheillo claimed that he was in poor health during the mediation.
The Court upheld the settlement agreement and rejected all of Minicheillo's challenges. No evidence indicated that the settlement resulted from duress. Although case law suggested that allusions to the possibility of criminal prosecutions might exert unacceptable pressure on a litigant to settle, here there was no proof that such threats had been made against Minichiello. Moreover, Minichiello did not present any evidence that he was in poor health during the arbitration.
Subscribe to a free weekly update on ADR case law and
legislation
|