In this case, the Plaintiff sought to insert an additional term in an effort to restrict the scope of the written release after the oral settlement contemplated releasing all known and unknown claims.
According to the Opinion, this matter arose out of construction litigation.
The Plaintiff was a developer that had contracted with several parties, including the Defendant, for construction services. During construction, the Plaintiff discovered design defects that lead to additional costs. After attempts to resolve these issues through a Mediation failed, the Plaintiff filed a lawsuit for breach of contract and professional negligence.
During the course of the litigation, the parties reached a settlement during negotiations participated in by the Plaintiff’s in-house representatives, including an attorney, as well as outside counsel for the Plaintiff. Once that oral agreement to settlement was reached, the Defendant’s attorney confirmed the terms of that settlement via an email. Plaintiff’s counsel acknowledged the email as representing the Plaintiff's understanding of the agreement as well.
However, the Plaintiff later sought to exclude latent defects from the final written settlement agreement, which was a term that was not part of the original oral settlement agreement.
Thereafter, when the parties could not resolve their dispute over the terms of the settlement agreement, the Defendant filed a Motion to Enforce the original settlement agreement. The Plaintiff filed a cross-Motion requesting the court’s enforcement of the different version of the settlement that the Plaintiff desired.
According to the Opinion, this matter arose out of construction litigation.
The Plaintiff was a developer that had contracted with several parties, including the Defendant, for construction services. During construction, the Plaintiff discovered design defects that lead to additional costs. After attempts to resolve these issues through a Mediation failed, the Plaintiff filed a lawsuit for breach of contract and professional negligence.
During the course of the litigation, the parties reached a settlement during negotiations participated in by the Plaintiff’s in-house representatives, including an attorney, as well as outside counsel for the Plaintiff. Once that oral agreement to settlement was reached, the Defendant’s attorney confirmed the terms of that settlement via an email. Plaintiff’s counsel acknowledged the email as representing the Plaintiff's understanding of the agreement as well.
However, the Plaintiff later sought to exclude latent defects from the final written settlement agreement, which was a term that was not part of the original oral settlement agreement.
Thereafter, when the parties could not resolve their dispute over the terms of the settlement agreement, the Defendant filed a Motion to Enforce the original settlement agreement. The Plaintiff filed a cross-Motion requesting the court’s enforcement of the different version of the settlement that the Plaintiff desired.
The trial court granted the Defendant’s Motion relative to the original oral settlement agreement and denied the Plaintiff’s Motion to seeking to change that agreement under a written settlement agreement.
The Superior Court found that the trial court had properly ruled that the parties had reached an enforceable oral settlement agreement, which was not contingent upon the confirmation of the terms in a written document. The court additionally found that the agreement included a mutual release of all known and unknown claims related to the construction project in exchange for the monetary settlement payment.
The appellate court otherwise determined that the Plaintiff’s attempt to alter the agreement in the written settlement agreement to exclude latent defects was an additional term that was not part of the original settlement agreement.
Anyone wishing to review a copy of the Majority decision may click this LINK. The dissenting Opinion by Judge Dubow can be viewed HERE.
Source: The Legal Intelligencer State Appellate Case Alert, www.Law.com (March 17, 2026).
The Superior Court found that the trial court had properly ruled that the parties had reached an enforceable oral settlement agreement, which was not contingent upon the confirmation of the terms in a written document. The court additionally found that the agreement included a mutual release of all known and unknown claims related to the construction project in exchange for the monetary settlement payment.
The appellate court otherwise determined that the Plaintiff’s attempt to alter the agreement in the written settlement agreement to exclude latent defects was an additional term that was not part of the original settlement agreement.
Anyone wishing to review a copy of the Majority decision may click this LINK. The dissenting Opinion by Judge Dubow can be viewed HERE.
Source: The Legal Intelligencer State Appellate Case Alert, www.Law.com (March 17, 2026).
Source of image: Photo by Radisson US on www.unsplash.com.









