Understanding Settlement Agreements in Florida
Settlement agreements play a crucial role in the realm of legal disputes in Florida, offering litigants and parties an opportunity to resolve their issues without the need for protracted litigation. These agreements, which are essentially contractual arrangements, are designed to be a final and complete resolution to the claims and issues that have been brought before the court. It is important for parties to remember that settlement agreements are not merely informal understandings; they are binding legal documents that can have serious implications for the parties involved.
A typical settlement agreement in the context of Florida law will include several key elements. For parties involved in family law matters, the agreement might address child custody and support , alimony, and property division, outlining how these issues will be resolved in a legally binding manner. In the context of business disputes, the agreement might define the terms of a merger or acquisition, or it may outline how the parties intend to divide assets or liabilities. Regardless of the specific circumstances of the dispute, all settlement agreements will generally contain the following components:
By outlining the parties involved, identifying the specific claims or issues being settled, and providing a release of liability, these agreements provide a clear framework for resolving disputes. Additionally, the inclusion of terms and conditions helps the parties ensure that they are fully aware of all expectations and obligations once the agreement is in effect.
When to Bring a Motion to Enforce
If the Respondent fails to pay child support, alimony, distribute equity, distribute an asset, make a payment or do something that he agreed to do in the settlement agreement, you may be forced to file a motion to enforce because the Respondent will not voluntarily do what he was supposed to do under the settlement agreement. Even worse if the Respondent fails to convey an asset, you may have to file a motion to compel and ask the Court to order the sheriff to sell the asset and give you the proceeds. The failure to comply with a settlement agreement is a breach of the agreement. The last thing you want to have to do after settling the case, is file a lawsuit as a result of a breach. However, the alternative will usually be unacceptable to you since the Respondent will not voluntarily do what they bargained to do. If the parties simply cannot agree, many times your only recourse will be filing a motion to enforce for the Court to decide which party should prevail. There must be a settlement agreement.
Legal Requirements for Motion to Enforce
In Florida, a court has limited jurisdiction to enforce a settlement agreement. In order for the Court to have jurisdiction to enter and enforce a settlement agreement (and the parties have not moved to Texas or North Carolina), the settlement agreement must be incorporated into a court order. The Court will not "entertain" a motion to enforce a settlement agreement except if it is incorporated into an order of the court. Most often, the courts will do this by providing in the final order, or an order on motion for partial summary judgment, that the parties have reached a settlement and are required to cooperate with the entry of a final order and judgment pursuant to the settlement agreement.
In order for the modified agreement to be enforceable, the settlement must "in essence" be a contract between the parties. The contract must be clear and unambiguous, and satisfy all essential elements of a contract. The agreement must be definite enough in its terms to provide a means by which its provisions can be given meaning. If the intent of the parties can be ascertained from the four corners of the instrument, then enforcement usually is appropriate. The general principles of contract law apply to settlements, and those principles include the requirement that the subject matter and terms of the promise be sufficiently complete to provide a basis for determining breach and providing an appropriate remedy.
The settlement agreement must set forth the rights, obligations, and conditions under which the obligation to pay alimony or child support terminates. An alimony or child support settlement agreement shall be enforceable and shall survive and not merge with a judgment of dissolution of marriage if it is approved by the court. Fla. Stat. § 61.075. Generally, a settlement agreement is enforceable if the parties have agreed on all material terms of the settlement. A stipulation or agreement entered into in a divorce proceeding is enforceable when: (1) there is a valid contract; (2) there is a clear purpose to submit the agreement to court for approval; and (3) there is proof of substantial performance. At the time of the final hearing for dissolution of marriage, the parties can enter into an agreement modifying the support provisions. In that event, the modification agreement should govern the case. Fla. Stat. § 61.073(1). Reviewing the agreement in this light, the appellate courts have found it appropriate to enforce settlement agreements in various circumstances.
Other than the signing of the settlement agreement and its incorporation into the order, there are no formalities for enforcement under Florida law.
The Motion Filing Process
The first step in "enforcing" in this case means filing a motion to have a Judge enforce the Agreement. Your Florida Family Law attorney should be able to quickly handle this for you. The process involves a Motion for Enforcement of Parties’ Settlement Agreement as well as a Notice of Hearing. There will also be a Final Judgment to sign at the end of the case. In Kendall, attorney Oprah Faye Gray utilizes the Florida Supreme Court approved "Standard Family Law Interrogatories" Form 12.930(a) as well as Florida Supreme Court approved "Financial Affidavit" Form 12.902(b) in addition to the "Motion to Enforce" and "Notice of Hearing" forms which are more specific to the issues in Kendall v. Kendall.
Remember that the "Full Disclosure" and "Assets & Debts" sections of these forms, which are required by Florida Statute § 61.075, relate to all assets and debts, be they marital or otherwise.
Some people want the court record to note that at the time the marital settlement agreement was signed that a particular asset was considered a non-marital or premarital asset. A premarital asset is one that you had at the time of marriage and need not be divided in a divorce. You should list it on financial disclosure forms. Other people don’t. There is no requirement to list a non-marital asset under Florida Family Law form 12.902(b) so know what you want to do before "talking it over" with your Florida Family Law attorney!
If you are the party seeking enforcement you will schedule an appointment for the time, date and place of the hearing to be held. The meeting with your Florida Family Law lawyer will focus on the supporting documents to schedule the hearing, such as the notice of hearing and supporting affidavits. You come prepared with all relevant documents to justify why you brought the motion to enforce the parties’ settlement agreement.
Possible Outcomes and Court Rulings
If a motion to enforce a settlement agreement has been filed, the Court may find that the disputed language contained in the settlement agreement is ambiguous. In such a case, the Court may ignore the provision and order the parties to comply with the remainder of the settlement agreement or, in the alternative, compel compliance with the possessed intent of the parties as demonstrated by all the circumstances surrounding the agreement.
In such an instance, the court may order either specific performance of the settlement agreement or award damages to the moving party. Specific performance asks the court to specifically enforce the terms of the settlement agreement. On the other hand, awarding damages to the moving party generally takes two forms. The first is enforcement damages. These are damages awarded because the non-compliant party failed to abide by the settlement agreement, now incorporated into a court order. The second is expectation damages. These are damages awarded to place the non-compliant party where the inured party would have been if the settlement agreement had been performed.
The weight of authority supports specific performance as a remedy for breach of a settlement agreement that has been incorporated into a final judgment. In such cases , the court’s action is said to be based on the court’s inherent powers "to enforce all orders and judgments entered by it." Additionally, the appellate court has broad discretion to control the disposition of the cause on appeal, and to grant a remedy within our jurisdiction as will achieve a just result.
If neither party believes the court has entered the proper order, an appeal can be filed and presupposes that the appellate court has jurisdiction over the specific issue. The appellate court may affirm the order, order enforcement or grant some other type of relief. In doing so, the appellate court primarily seeks to "advance justice." When enforcing settlement agreements, trial courts avoid visits from the appellate court by entering orders that are specific enough to allow a reasonably competent person to carry out the agreement but flexible enough to delegate peripheral details.
Tips for Ensuring Your Motion Is Successful
Tips for a Successful Motion to Enforce a Settlement Agreement
Clear agreement language: Just as with a contract that is in dispute, a motion to enforce a settlement agreement will strengthen your case if an unambiguous agreement exists. A well-written settlement agreement reduces ambiguity and makes it difficult for the other party to assert a different outcome from what you are requesting.
Evidence of negotiations: Both parties can strengthen their case by providing any evidence they have of the negotiations that led up to the agreement—especially if it involves back-and-forth of different issues that you didn’t think were part of the agreement. A simple email that opens up negotiation and a response confirming its acceptance will be helpful in proving to the judge what the intent was of the parties.
Cancellation in writing: If the case cancelled before the judge’s approval of the settlement, you may have already filed a joint stipulation to cancel the agreement, at which point it is unlikely that the court will consider your settlement agreement. Even if you discuss the cancellation verbally with the judge, a written cancellation is the best course of action. If you didn’t file a written stipulation to cancel, the judge may find you still have an enforceable contract.
Failure to complete the terms: If the agreement is unambiguous and clear, and you have previously filed a request for enforcement, a judge will likely believe it is binding.
Common Pitfalls and How to Avoid Them
Common challenges arise after a successful settlement agreement, primarily due to one party’s failure to comply with its terms. Common challenges are (a) non-compliance with the terms of the agreement; (b) parties seeking to change the settlement agreement even though both agreed to its terms; and (c) refusing to abide by the full and complete terms of the agreement. Other challenges include (d) one party filing an appeal on other unrelated issues; and (e) lack of clarity in the agreement.
Fortunately, most of these issues can be resolved through effective and straightforward legal processes. Choosing to proceed with a motion to enforce the terms of the settlement agreement or to pursue a breach of contract claim based on the agreement is an essential first step. An attorney experienced in enforcing settlement agreements can help you to determine the most effective legal action to take for your individual case. Time is of the essence when you are seeking to enforce the terms of an agreement. The Florida Rules of Appellate Procedure require that a motion to enforce an agreement must be made within 30 days of the agreement being signed when the subject family law case is on appeal. When the case is not on appeal, this motion should be filed as soon as possible. It is important to note that if the other party has violated the terms of agreement previously (or violated other court orders) you may have already received a finding of contempt and even a certification of attorney’s fee award. In this case, the motion to enforce may be expedited resulting in a quicker ability to present the matter to the Court and receive the appropriate relief. Additionally, if the agreement includes waiver of certain legal rights, a waiver of entry of judgment, or other legal rights , the judge may find that this issue may be heard more quickly than others. Essentially, a motion to enforce a settlement agreement in Florida forces compliance. It does not impact the substantive issue as to whether the other person will be ordered to pay; it only enforces the terms of the settlement agreement. For example, if you settled an issue and the other party has not made the payment, a motion to enforce the settlement agreement will not address the issue of whether the amount paid was appropriate or inadequate. It is important to keep in mind that all actions taken by the attorneys and parties involved in the proceeding must be notified to the other party within a reasonable amount of time. Generally speaking, within twenty four (24) hours. If you believe you have not been consulted about an action or are unaware, you should contact your attorney immediately. In general, a motion to enforce a settlement agreement is filed with the court, along with any supporting documentation (see Florida Rule of Judicial Administration 2.516 and the Family Law Rules regarding confidentiality requirements). The motion will include the following: This motion must be served on the other party (if you have a marital settlement agreement that was incorporated in a final judgment, the other party is a party to the action and you need only serve them with the motion to enforce) and provided to the judge by whatever process your local rules require – e-filing, fax file, mailing/hard copy, etc. The judge may hold a hearing on the motion to enforce the settlement agreement after both parties have been given an opportunity to submit information to the court in support of their arguments. After hearing both parties, the judge may issue an order to force compliance with the settlement agreement or deny the motion.