Opinion ID: 1910226
Heading Depth: 1
Heading Rank: 2

Heading: right to withdraw consent

Text: Ms. Chernick claims that she was not bound by the proposed consent judgment which had been signed by the parties and submitted to the court for its approval. She contends that she has the right to withdraw her consent at any time prior to the court's signing of the proposed consent judgment. The first requisite for a consent judgment is that there must be either continuing consent or a binding consensual contract to settle the case. In the instant case, as we have previously discussed, there was a binding contract. A party's decision to renege on an agreement should not provide any greater ground to rescind a contract of settlement than it would any other contract. See Petty v. Timken Corp., 849 F.2d 130 (4th Cir.1988); Lyles v. Commercial Lovelace Motor Freight, Inc., 684 F.2d 501 (7th Cir.1982). It is well established in Maryland that a valid settlement agreement between the parties is binding upon them. Clark v. Elza, 286 Md. 208, 406 A.2d 922 (1979). As early as 1855, this Court has made it clear that settlement agreements are desirable and should be binding and enforceable. In McClellan v. Kennedy, 8 Md. 230 (1855), we said: `If compromises are otherwise unobjectionable they will be binding, and the right will not prevail against the agreement of the parties, for the right must always be on one side or the other, and there would be an end of compromises if they might be overthrown upon any subsequent ascertainment of right contrary thereto.' The doctrine of compromises rests on this foundation. Id. at 248, quoting 1 Story's, Commentaries on Equity §§ 131-32. In Clark, the plaintiffs filed suit alleging that the defendants were responsible for their injuries in an automobile accident. Settlement negotiations began, a figure of $9500 was verbally agreed upon, the trial judge was notified of the settlement, and the case was removed from the trial calendar. Subsequently, the plaintiffs refused to sign a release and an order of satisfaction and advised the court that they were no longer willing to settle. The defendants filed a Motion to Enforce Settlement and a hearing was held. The plaintiffs argued that the settlement was not binding upon them because it was an executory accord and was not enforceable. The trial court agreed and declined to enforce the settlement  it found that the agreement was an executory accord and was not binding, rather than a substitute contract which would have been binding. We reversed the trial court on appeal and explained the nature and effect of the parties' settlement agreement. We stated that an executory accord is an agreement for the future discharge of an existing claim by a substituted performance. Clark, 286 Md. at 214, 406 A.2d at 925 (quoting 6 Corbin on Contracts, § 1268 (1962)). An executory accord holds the rights and duties of the parties in abeyance until performance of the settlement. A substitute contract, however, replaces the old agreement with a new agreement at the time the new agreement is made and immediately discharges the original claim. Traditionally, an executory accord had been held to be unenforceable and no defense against a suit on the prior claim. We held, in accordance with the modern view and in our opinion the better view, that the settlement was enforceable by the court. In a statement equally applicable to the instant case, Judge Eldridge, writing for the Court, noted: As long as the basic requirements to form a contract are present, there is no reason to treat such a settlement agreement differently than other contracts which are binding. This is consistent with the public policy dictating that courts should `look with favor upon the compromise or settlement of law suits in the interest of efficient and economical administration of justice and the lessening of friction and acrimony.' Clark, 286 Md. at 219, 406 A.2d at 928, quoting Chertkof v. Harry C. Weiskittel Co., 251 Md. 544, 550, 248 A.2d 373, 377 (1968), cert. denied, 394 U.S. 974, 89 S.Ct. 1467, 22 L.Ed.2d 754 (1969). To support her position that she may withdraw her consent at any time before a judge actually signs the consent judgment, Ms. Chernick relies heavily on Dorsey v. Wroten, 35 Md. App. 359, 370 A.2d 577 (1977). Without expressly approving or disapproving its holding, we find Dorsey inapposite. In Dorsey, the parties had entered into a contract for the sale of a parcel of land. A dispute arose between the parties and, as a result of this conflict, a complaint for specific performance was filed and the case was set for trial. When the case was called, counsel requested a settlement type conference in the judge's chambers. A settlement agreement was reached and the judge requested that a consent decree be prepared and presented to him. Later that day, Dorsey's counsel informed the judge that Dorsey no longer agreed to the settlement terms and would not sign the proposed consent judgment. The judge considered the matter settled and signed a consent decree. The Court of Special Appeals, in reversing the trial court, stated that even though [Dorsey] orally agreed to a settlement agreement, it is obvious that he withdrew that consent before the final meeting with the trial judge. Id. at 362, 370 A.2d at 579. Dorsey's withdrawal of consent was held to be permissible because the court found that the parties had agreed to the terms, but it is obvious that there was no consent thereto in open court nor was there a written stipulation filed in court. Id. at 363, 370 A.2d at 580. The intermediate appellate court also noted By its nature, therefore, a consent decree cannot be entered unless both parties agree to the order which is presented to the clerk. Id. at 361 n. 1, 370 A.2d at 579 n. 1. We agree with the Court of Special Appeals' statement in Dorsey that the entry of a judgment by consent implies that the terms and conditions have been agreed upon and consent thereto given in open court or by filed stipulation. [2] Id. at 363, 370 A.2d at 580. Ms. Chernick contends that the written stipulation was not filed with the court as Dorsey requires because it was not docketed. We disagree. Generally, the filing of pleadings and other papers with the court as required by these rules shall be made by filing them with the clerk of the court.... Md.Rule 1-322(a). The agreement was filed in accordance with the Maryland Rules in that the consent order was sent to the clerk of the court, officially stamped by the clerk, and placed in the court file. Further, at the time that the order was filed both parties agreed and consented to its terms. The parties intended for the agreement to be binding and to terminate the litigation if approved by the court. Pursuant to that agreement, the case was removed from the Master's trial calendar. Once a consent judgment is agreed to by the parties, executed by the parties or their authorized agents, filed with the court, and the case is taken off the trial calendar, the court may sign that consent order. The fact that one of the parties may have changed his or her mind shortly before or shortly after the submitted consent order was signed by the court does not invalidate the signed consent judgment. It is further contended by Ms. Chernick that we should adopt the rule in some other jurisdictions that a consent judgment or consent decree should not be entered unless the consent continues until the moment the court undertakes to make the agreement the judgment of the court. The authority Ms. Chernick cites for this rule is the Texas intermediate appellate court's decision in Seibert v. Seibert, 759 S.W.2d 768 (Tex. Ct. App. 1988). We decline to accept the rationale of Seibert and note that it is based on the doctrine we rejected in Clark and Chertkof that [a] party to a settlement agreement may revoke his consent to settle a case before judgment is rendered. Id. at 770. Ms. Chernick also relies on the case of Lownds v. Lownds, 41 Conn. Supp. 100, 551 A.2d 775 (1988). Her reliance is misplaced. In Lownds, the parties entered into a stipulation which, if approved by the court, would modify the provisions of a prior alimony support order. The agreement, however, was never presented to the court and the wife apparently repudiated the agreement claiming it was obtained under duress. She also sought enforcement of the original court order. The Connecticut court agreed and held that [d]uress was the foundation of this agreement ..., therefore, ... it is invalid and unenforceable. Id. at 780. Ms. Chernick makes no claim of duress. Mr. Chernick has conceded that the consent judgment should not have been signed and should be reversed if there was no contract to settle or if the agreement was made under duress or even if it was inequitable. He contends, and we agree, no such showing has been made by Ms. Chernick. We hold that where, as in the instant case, the parties have reached a valid contractual agreement as to the terms of a consent judgment, have reduced it to writing and signed the proposed judgment through their authorized agents, have filed it with the court and removed the case from the trial calendar, a judge may sign the consent judgment even if prior thereto one party has tried to rescind the contract to settle. Whether a judge could still have signed the consent judgment even if all those factors were not present is not before us in the instant case.