CROSS-AERO CORPORATION ET AL., APPELLANTS,
v.
CROSS-AERO SERVICE CORPORATION ET AL., APPELLEES
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
Cross-Aero Corporation and Frank Crawford appealed a trial court order compelling them to settle a breach of contract and tort action. The appellate court reversed, holding that an attorney lacks authority to settle a client's case without express authorization, absent an emergency, and that the defendants failed to prove the plaintiffs assented to or ratified the settlement agreement.
An attorney lacks implied or apparent authority to compromise or settle a client's cause of action merely by virtue of employment, except in emergency situations requiring prompt action when client consultation is impossible. The defendants bore the burden of establishing the plaintiffs' assent to settlement, which they failed to meet; absent evidence of authorization or ratification, the unauthorized settlement was a nullity that could be repudiated.
[1] A party seeking judgment on the basis of a settlement agreement has the burden of establishing assent by the opposing party.
[2] The mere employment of an attorney does not grant implied or apparent authority to compromise a client's cause of action.
Previewing 2 of 5 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“The mere employment of an attorney to represent a client with respect to litigation or other matters does not of itself give the attorney the implied or apparent authority to compromise or settle his client's cause of action.”
Establishes the core rule that an attorney lacks inherent settlement authority
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceThe day before trial, defense counsel telephoned plaintiff's counsel in the judge's presence and announced the case was settled, having already drafte…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Express Authority cases and more on FLexlaw
NATHAN, Judge.
Cross-Aero Corporation and Frank J. Crawford, plaintiffs in the trial court, appeal from a final order compelling settlement in an action for damages against defendants Cross-Aero Service Corporation and Dean Franklin, appellees-herein, for alleged breach of interim agreements, interference with government contracts, and slander of credit and good will, among other charges. The order required the plaintiffs to carry out the terms of an alleged settlement agreement with the defendants.
The pertinent facts are that on the day before the scheduled final hearing of this cause, counsel for the defendants, in the presence of the trial judge, contacted counsel for the plaintiff by telephone in order to determine whether a settlement could be reached. When the conversation was concluded, defense counsel announced that the case was settled. At the time of the telephone conversation, defense counsel had already drafted an unexecuted settlement agreement.
Neither of the attorneys appeared for trial on the following day. Some IS or 20 days following the trial date, plaintiffs’ counsel advised the defendants that the settlement was off because certain equipment which was to be turned over to the plaintiffs was destroyed or lost, and the valuation of other items was still in dispute. The defendants filed a motion to compel settlement. At the hearing, the trial judge heard only the unsworn statements of counsel as to whether a settlement was reached. Plaintiffs’ counsel admitted that the parties were close to settlement, but stated that he did not have his clients’ authority to settle, and further that settlement was impossible because of the defendants’ inability to comply with the terms of the agreement. The trial court entered an order compelling settlement, but wisely retained jurisdiction to decide damages that might be sustained by either party to the settlement by way of the other’s non-compliance therewith.
In this appeal, the plaintiffs contend that an attorney has no authority to settle a case without the express authority of his client except in an emergency situation. The defendants agree with this proposition of law, but argue that since neither the plaintiffs nor the defendants, nor either counsel, appeared on the following day for the trial, and since the plaintiffs did not renege on the settlement agreement until some 20 days after making the alleged settlement, the trial court did not err in entering the order compelling compliance with the settlement agreement.
We are in agreement with the position of the plaintiffs. The party seeking a judgment on compromise and settlement has the burden of establishing assent by the opposing party. Goff v. Indian Lake Estates, Inc., Fla.App.1965, 178 So. 2d 910. The mere employment of an attorney to represent a client with respect to litigation or other matters does not of itself give the attorney the implied or apparent authority to compromise or settle his client’s cause of action. Palm Beach Royal Hotel, Inc. v. Breese, Fla.App.1963, 154 So. 2d 698. An exception to this rule is a situation in which the attorney is confronted with an emergency which requires prompt action to protect his client’s interests and the situation is such that consulation with the client is impossible. Bursten v. Green, Fla.App.1965, 172 So. 2d 472. There is, of course, no objection to the client giving his attorney special or express authority to compromise or settle his cause of action, but such authority must be clear and unequivocal. Bursten v. Green, supra. An unauthorized compromise, executed by one’s attorney, however, unless subsequently ratified, is of no effect and may be repudiated or ignored and treated as a nullity by one in whose behalf it was executed. Palm Beach Royal Hotel, Inc. v. Breese, supra; State Department of Transportation v. Plunske, Fla.App.1972, 267 So. 2d 337.
Our review of the record failed to indicate that there was an emergency situation, or that plaintiffs’ counsel had authority to settle or that the plaintiffs ratified the agreement. Accordingly, we reverse the order compelling settlement and remand the cause to the trial court for further proceedings consistent herewith.
Reversed and remanded with directions.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (17 total)
-
Rushing v. Garrett, 375 So. 2d 903 (Fla. 1st DCA 1979)…decree on the merits. Goff v. Indian Lakes Estates, Inc., supra, footnote 2, citing Kramer v. City of Lakeland, 38 So. 2d 126 (Fla.1948); Bursten v. Green, 172 So. 2d 472 (Fla. 2nd DCA 1965). See also Cross-Arrow Corp. v. Cross-Arrow Service Corp., 326 So. 2d 249 (Fla. 3rd DCA 1976). In the case under consideration by giving effect to the correspondence between the attorneys as a binding agreement for conveyance of appellants’ land, the trial court effected a conclusion on the merits of the partition litiga…
-
Boyko v. Ilardi, 613 So. 2d 103 (Fla. 3d DCA 1993)…uding the plaintiff, see, e.g., Shaw v. Shaw, 334 So. 2d 13 (Fla.1976); Dixie Operating Co. v. Exxon Co., US.A., 493 So. 2d 61 (Fla. 1st DCA 1986); Nehleber v. Anzalone, 345 So. 2d 822 (Fla. 4th DCA 1977); Cross-Aero Corp. v. Cross-Aero Serv. Corp., 326 So. 2d 249 (Fla. 3d DCA 1976); (2) said settlement agreement was not barred by the statute of frauds [§ 725.-01, Fla.Stat. (1991)], because performance could be completed within one year; and (3) the execution of the settlement documents was not a condition pr…
-
Carroll v. Carroll, 532 So. 2d 1109 (Fla. 4th DCA 1988)…ed] Id. at 822-23. See also Palm Beach County v. Boca Development Associates, Ltd., 485 So. 2d 449 (Fla. 4th DCA 1986); State Department of Transportation v. Plunske, 267 So. 2d 337 (Fla. 4th DCA 1972); Cross-Aero Corp. v. Cross-Aero Service Corp., 326 So. 2d 249 (Fla. 3d DCA 1976); Goff v. Indian Lake Estates, Inc., 178 So. 2d 910 (Fla. 2d DCA 1965). [*1110] Here, there was no evidence demonstrating that Mrs. Carroll had ever ratified, authorized, or otherwise assented to the agreement. To the contrary, all…
Previewing 3 of 17 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Goff v. Indian Lake Ests., Inc., 178 So. 2d 910 (Fla. 2d DCA 1965)
- Bursten v. Hyman Green and Irving Green, 172 So. 2d 472 (Fla. 2d DCA 1965)
- State of Fla. Dep't OF Transp. v. Plunske, 267 So. 2d 337 (Fla. 4th DCA 1972)
- Palm Beach Royal Hotel, Inc. v. Breese, 154 So. 2d 698 (Fla. 2d DCA 1963)