Robertson v. Alling

Petitioners sued Respondents. Respondents, represented by counsel, made a settlement offer. The offer subsequently expired. Respondents’ counsel later extended a new settlement offer with terms that mirrored the prior offer. Petitioners’ attorney timely accepted the offer, and the trial court accepted the settlement (February 8 settlement). After Respondents’ attorney learned that he lacked authority to extend the settlement offer, he made a new settlement offer, which materially varied from the February 8 settlement. Petitioners moved to enforce the February 8 settlement. The trial court granted the motion, concluding that Respondents’ attorney had actual and apparent authority to extend the settlement offer and, alternatively, that Respondents were equitably estopped from disputing that authority. The court of appeals reversed, concluding that because Respondents’ assent to the agreement was not in writing, the requirements of Ariz. R. Civ. P. 80(d) were not met, and the agreement was unenforceable as a matter of law. The Supreme Court reversed, holding (1) because the parties in this case did not dispute the existence and terms of the February 8 settlement, Rule 80(d) did not apply; (2) even if Rule 80(d) applied, the agreement satisfied the rule; and (3) the agreement was enforceable because the attorney acted within the apparent authority given by his clients. View "Robertson v. Alling" on Justia Law