Calif. Court Creates Settlement Agreement Pitfalls

Law360, New York (March 26, 2014, 12:59 PM EDT) -- On March 17, 2014, the California Court of Appeal published its February decision in the matter of Purcell v. Schweitzer, a move that may cause some attorneys to rethink their approach to settlement agreements.

The underlying dispute arose when Purcell loaned Schweitzer $85,000. Schweitzer executed a promissory note on which he eventually defaulted. Purcell brought suit to recover the amount of the loan. The parties reached a settlement requiring Schweitzer to pay Purcell $38,000 at 8.5 percent annual interest in 24 payments between April 1, 2010,...
To view the full article, register now.