NYLJ “Form of Settlement Agreement Weighs in Favor of Enforceability Even Absent Executed Document”
By Thomas E.L. Dewey
A recent case from the Southern District of New York, In re Elysium Health-ChromaDex Litigation, No. 17-cv7394(LJL), 2022 WL 1156181 (S.D.N.Y. April 19, 2022), highlights the risks facing parties that seize opportunities to settle when there is heightened uncertainty in litigation—for example, when a decision on summary judgment is forthcoming. A party that prematurely settles a dispute will not be able to renege on an otherwise valid settlement even absent an executed document. Further, settlement agreements are simply contracts, and no matter the magnitude of a dispute nor the apparent sophistication of the parties, familiar principles of contract law will determine the enforceability of such agreements.
This article first appeared in the New York Law Journal on July 8, 2022. Edward Lee, an associate of the firm, assisted in the preparation of the article.