Q: settlement formation and enforcement
What is statute/rule that define settlement formation and enforcement?
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A:
The key California statutes governing settlement agreements are California Code of Civil Procedure (CCP) § 664.6 and California Civil Code § 1542. CCP § 664.6 allows parties to enforce settlements by summary motion if the agreement is signed by all parties or made orally before the court.
For settlement agreements to be enforceable in California, they must contain all material terms and show a meeting of the minds between the parties. The agreement needs to be sufficiently definite for the court to determine the obligations and rights of each party. California Civil Code § 1542 comes into play specifically for releases of claims, requiring explicit waivers if parties intend to release unknown claims.
If a dispute arises over enforcement, the court can hold an evidentiary hearing under CCP § 664.6 to resolve factual issues about the settlement's terms or formation. The court has authority to interpret the agreement, determine if all conditions were met, and enter judgment according to the settlement terms. In cases where parties dispute the existence or terms of an oral settlement, Evidence Code § 1118 requires the agreement to be recorded by a court reporter or reduced to writing to be enforceable.
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