Opinion ID: 1712397
Heading Depth: 2
Heading Rank: 1

Heading: whether the mediation agreement was the product of duress, coercion, mental weakness and therefore procedurally unconscionable.

Text: ¶ 12. Chantey claims that the mediation process which resulted in the settlement of this matter was fraught with inequity and procedurally unconscionable due to duress, coercion and mental weakness. Moreover, Chantey alleges that Malouf, in representing Malaco at the parties' court-ordered mediation conference, coerced the corporation's president, Kazery, into signing an agreement he was not prepared to sign by threatening him with prosecution in bankruptcy court. Conversely, Malaco asserts that Chantey has failed to offer a scintilla of evidence in support of these claims. ¶ 13. It is well-settled that where conflicting testimony is presented, expert and otherwise, the [trial judge, when sitting as fact-finder] is required to make a judgment on the credibility of the witnesses in order to resolve the questions before the court. Hastings v. Guillot, 825 So.2d 20, 24 (Miss.2002) (citing Broadhead v. Bonita Lakes Mall, Ltd. P'ship, 702 So.2d 92, 101 (Miss.1997); Doe v. Doe, 644 So.2d 1199, 1207 (Miss.1994)). ¶ 14. In today's case, it was the circuit judge's responsibility to reconcile the evidence offered before the court and determine whether it supported Chantey's allegations of duress, lack of voluntariness, and overreaching. On this issue, Judge Kidd specifically found, [t]hough Chantey, through Mr. Kazery, has filed various documents in this Court suggesting that there was confusion about the settlement, or that Chantey acted under duress, or that Chantey was somehow coerced into the settlement, there is no proof of any improper conduct in this matter on behalf of Chantey's attorneys, the mediator, or Malaco's attorney. Ultimately, Judge Kidd concluded that not only was there no proof in support of Chantey's allegations, there was no legal basis in which to undergird a finding that the settlement agreement was tainted by fraud, coercion, or duress. ¶ 15. Upon examination of the record, there is overwhelming evidence supporting Judge Kidd's determination to enforce the parties' settlement agreement reached at the mediation conference. At the motion hearing, the testimony of Malouf, Malaco's attorney at the mediation conference, Zachary, the mediator, and Pepper, who represented Chantey at the mediation conference, revealed an arm's-length settlement agreement. [3] Thus, the testimony of all the witnesses who testified revealed that the settlement process was fair and without oppression. Specifically, Pepper attested to the fact that he attended the mediation conference as Chantey's lawyer; that the parties negotiated at arm's length; that the parties reached a settlement agreement; that the terms of the settlement were clearly communicated to Chantey; that Chantey understood the terms of the settlement; that Chantey agreed to the settlement; that Kazery signed the settlement on behalf of Chantey; that he (Pepper) as well as his co-counsel, Smith, agreed to the terms of the settlement; that Chantey, through Kazery, participated in every conversation and every negotiation throughout the mediation; that at the conclusion of the mediation, the parties and the mediator came together to discuss the terms of the settlement in order to finalize the agreement; that throughout the mediation, Chantey was provided the assistance of counsel; and, that Zachary's letter prepared subsequent to the mediation conference stated the agreed terms and conditions of the settlement reached between the parties. ¶ 16. When testifying about the execution of the settlement agreement, Malouf stated all the parties were in the same room and we went over the terms of this [agreement] twice. In other words, I was present, Mr. Smith was present, Mr. Pepper was present, Mr. Kazery and his wife were present, and the mediator was present as we sat down and went over the terms to make sure that the terms were right. This was not something that was done secretly. ¶ 17. Finally, a transcript of Zachary's deposition testimony was received into evidence at the motion hearing. Zachary's testimony corroborated the occurrences as described by the other witnesses. Additionally, Zachary testified that Kazery voluntarily signed the settlement agreement on behalf of Chantey; that Kazery understood the terms of the settlement agreement; that he [Zachary] did not see anyone threaten or intimidate Kazery; that nothing untoward occurred at the mediation which should cause the settlement to be set aside; that the parties were not forced to agree to any provision of the settlement; and, that his letter of August 8, 2002, reflected the settlement agreement reached at the mediation conference. ¶ 18. Interestingly, while the transcript of the hearing does reflect that the trial court disallowed Kazery's request to call a witness based on the trial court's ruling that Chantey could not proceed pro se (meaning that Kazery could not interrogate any witness called by Chantey), even Malaco's counsel conceded that [Malaco's] position is that [Kazery] can testify as a witness but he can't act as an advocate. For whatever reason, Kazery chose not to testify. However, the record does reveal that at the conclusion of the evidentiary hearing, Kazery basically set out Chantey's position in non-stop argument to the trial court which consumed roughly one and one-half pages of the twenty-seven page transcript of the hearing. ¶ 19. Thus, while Kazery was not able to call and interrogate witnesses, it can hardly be said that the trial court was in the dark as to Chantey's position on the issue of the validity of the settlement agreement. See and compare Guar. Nat'l Ins. Co. v. Pittman, 501 So.2d 377, 386 (Miss.1987). ¶ 20. Clearly, there is substantial evidence supporting Judge Kidd's discretionary determination regarding the viability of the parties' settlement agreement. Accordingly, for the reasons stated, we find this issue to be without merit.