VIREN A. PATEL, APPELLANT,
v.
ASHCO ENTERPRISES, INC., ETC., APPELLEE
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Patel appeals a final judgment enforcing a mediation agreement between himself and Metro Services, arguing the agreement was void because it was executed while the case was pending in county court, which lacked subject matter jurisdiction over noncompete claims. The appellate court affirmed, holding that a mediation agreement is a contract governed by contract law and remains enforceable despite the lower court's lack of subject matter jurisdiction over the underlying claim.
The mediation agreement was valid and enforceable. A settlement or mediation agreement is a contract between the parties governed by contract law, and its enforceability is not dependent on whether the court enforcing it had subject matter jurisdiction over the underlying action.
[1] A trial court has jurisdiction to enforce a settlement agreement entered into by parties in a prior, dismissed action, provided the agreement itself is a valid and enforc…
[2] A settlement agreement, even if not made a part of a final judgment, is a contract between the parties and may be enforced in a separate action.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“While a settlement agreement may be the basis upon which a judgment may be entered, it is also a contract between the parties, the enforceability of which is governed by the laws of contract.”
Establishes the fundamental principle that settlement/mediation agreements are contracts whose enforceability is determined by contract law rather than jurisdictional requirements.
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Join FLexlaw to unlock all legal intelligenceMetro filed a complaint in county court against Patel and Gary Keys for breach of a noncompete employment agreement. While the case was pending in cou…
The full statement of facts, procedural history, and disposition for this case are member content.
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ANTOON, Judge.
Viren A. Patel (Patel) appeals the final judgment and permanent injunction (final judgment) entered in favor of Ashco Enterprises, Inc., d/b/a Metro Services of Central Florida (Metro) in accordance with the terms of the parties’ mediation agreement. Patel contends the mediation agreement was void and thus unenforceable because the parties entered into the agreement while the case was pending in county court which lacked' jurisdiction over this matter. See § 542.30, Fla. Stat. (1995). However, the párties’ mediation agreement was valid and enforceable. Therefore, we affirm the final judgment.
Metro filed a complaint in county court alleging that it was entitled to recover damages from Patel and Gary Keys for their breach of a noncompete employment agreement. While the case was pending in county court, the parties entered into a mediation agreement which provided that Patel would pay Metro $35,000 in monthly installments. The mediation agreement further provided that if Patel breached the agreement, the case would be transferred to the circuit court and a judgment would' be entered against Patel for $100,000, plus $5,000. in attorneys’ fees and costs. Additionally, the parties agreed that, upon default, a two-year injunction would be entered against Patel. When Patel faded to make the first installment, the case was transferred to the circuit court. The circuit court then enforced the parties’ mediation agreement by entering a final judgment for $105,000, as well as an injunction against Patel.
Patel argues that the parties’ mediation agreement was void ab initio, and thus the trial court erred in enforcing it, because the agreement was the result of a mediation which occurred while Metro’s lawsuit was pending in county court. Specifically, Patel maintains the parties’ mediation agreement was unenforceable because the county court lacked subject matter jurisdiction over Metro’s noncompete claim pursuant to section 542.30, Florida Statutes, (1995), which provides that Florida’s circuit courts possess exclusive jurisdiction to enforce such agreements. We disagree.
While a settlement agreement may be the basis upon which a judgment may be entered, it is also a contract between the parties, the enforceability of which is governed by the laws of contract. See Weinberg v. Lozman, M.D., 364 So. 2d 841, 842 (Fla. 3d DCA 1978). This principle applies even when the court enforcing the settlement agreement lacks subject matter jurisdiction over the earlier action from which the agree ment emanated. Id. Accordingly, the trial court properly enforced the mediation agreement entered by the parties’ in the instant case even though it was executed while the litigation was pending in county court and the county court’s jurisdiction to consider Metro’s noncompete claim was subject to challenge.
AFFIRMED.
COBB and W. SHARP, JJ., concur.
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Gallagher v. Dupont, 918 So. 2d 342 (Fla. 5th DCA 2005)…mply a private contract. í'While a settlement agreement may be the basis upon which a judgment may be entered, it is also a contract between the parties, the enforceability of which is governed by the laws of contract.” Patel v. Ashco Enters., Inc., 711 So. 2d 239 (Fla. 5th DCA 1998). Dupont and the Tangusso Estate were free to modify their agreement to elect another remedy. “It is well established that the parties to a contract can discharge or modify the contract, however made or evidenced, through a subse…
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Jennings v. Durden (Fla. 5th DCA 2024)
Authorities Cited
- Irwin Weinberg v. Harvey Lozman, M.D., 364 So. 2d 841 (Fla. 3d DCA 1978)