---
title: Settlement Agreement Enforcement
description: An overview of the legal standards and procedures for enforcing settlement agreements in civil litigation.
keywords: [settlement agreement, breach of contract, enforcement, civil litigation, remedies]
category: law
---

## Introduction to Settlement Agreement Enforcement

Settlement agreements are a common feature of civil litigation, allowing parties to resolve their disputes outside of court through negotiation and compromise. When a settlement agreement is reached, it is a binding contract that obligates the parties to fulfill the agreed-upon terms.[^1] However, disputes may still arise over the enforcement of a settlement agreement, requiring the involvement of the courts. This reference document will provide an overview of the legal standards and procedures for enforcing settlement agreements in civil litigation.

[^1]: See, e.g., *Catamount Slate, Inc. v. Sheldon*, 845 A.2d 324, 330 (Vt. 2004) ("A settlement agreement is a contract, and the general rules of contract construction apply.").

## Breach of Settlement Agreement

The primary basis for seeking enforcement of a settlement agreement is a claim of breach of contract.[^2] To establish a breach of a settlement agreement, the plaintiff must demonstrate the following elements:

1. The existence of a valid and enforceable settlement agreement;
2. The defendant's failure to perform a material term of the agreement; and
3. Damages resulting from the breach.[^3]

[^2]: See *Kokkonen v. Guardian Life Ins. Co. of Am.*, 511 U.S. 375, 381-82 (1994) (holding that a federal court's jurisdiction to enforce a settlement agreement requires either an independent basis for federal jurisdiction or the court's incorporation of the agreement into its dismissal order).

[^3]: See *Restatement (Second) of Contracts § 235(2)* (1981) ("When performance of a duty under a contract is due, any non-performance is a breach.").

The plaintiff bears the burden of proving these elements by a preponderance of the evidence.[^4] If the plaintiff successfully establishes a breach of the settlement agreement, the court may grant various remedies, as discussed in the following section.

[^4]: See *Lucey v. Hero Commc'ns, Inc.*, 772 F.2d 873, 878 (11th Cir. 1985) (noting that the plaintiff bears the burden of proving a breach of a settlement agreement by a preponderance of the evidence).

## Remedies for Breach of Settlement Agreement

Upon a finding of a breach of a settlement agreement, the court may grant various remedies to the non-breaching party. The primary remedies available include:

1. Specific performance: The court may order the breaching party to perform the specific obligations set forth in the settlement agreement.[^5] This remedy is typically available when the subject matter of the agreement is unique or when monetary damages would be an inadequate remedy.

2. Monetary damages: The court may award the non-breaching party monetary damages to compensate for the losses sustained as a result of the breach.[^6] Damages may include the costs incurred in the underlying litigation, as well as any additional losses directly caused by the breach.

3. Rescission: The court may rescind the settlement agreement, effectively undoing the entire contract and restoring the parties to their pre-settlement positions.[^7] Rescission is generally appropriate when the breach is material and the parties can be returned to their original positions.

[^5]: See *Restatement (Second) of Contracts § 357* (1981) ("Specific performance of a contract duty will be granted in the discretion of the court against a party who has committed or is threatening to commit a breach of the duty.").

[^6]: See *Restatement (Second) of Contracts § 347* (1981) ("Contract damages are ordinarily based on the injured party's expectation interest and are intended to give him the benefit of his bargain by awarding him a sum of money that will, to the extent possible, put him in as good a position as he would have been in had the contract been performed.").

[^7]: See *Restatement (Second) of Contracts § 373* (1981) ("In an appropriate case the injured party has the option to request rescission of the contract and restitution of any benefit that he has conferred on the other party.").

The court's choice of remedy will depend on the specific circumstances of the case, the nature of the breach, and the ability to restore the parties to their pre-settlement positions.

## Defenses to Settlement Agreement Enforcement

Parties may raise various defenses to the enforcement of a settlement agreement, including:

1. Lack of valid contract formation: The defendant may argue that the settlement agreement is unenforceable due to a lack of mutual assent, consideration, or other contract formation issues.[^8]

2. Duress or undue influence: The defendant may claim that the settlement agreement was obtained through duress or undue influence, rendering it unenforceable.[^9]

3. Mistake or misrepresentation: The defendant may assert that the settlement agreement was based on a mutual mistake of fact or was induced by a material misrepresentation, making it voidable.[^10]

4. Unconscionability: The defendant may argue that the settlement agreement is unenforceable because it is unconscionable, meaning it is so one-sided or oppressive that it shocks the conscience of the court.[^11]

The defendant bears the burden of proving these defenses by a preponderance of the evidence. If successful, the court may decline to enforce the settlement agreement or grant other appropriate relief.

[^8]: See *Restatement (Second) of Contracts § 17* (1981) ("The formation of a contract requires a bargain in which there is a manifestation of mutual assent to the exchange and a consideration.").

[^9]: See *Restatement (Second) of Contracts § 175* (1981) ("If a party's manifestation of assent is induced by an improper threat by the other party that leaves the victim no reasonable alternative, the contract is voidable by the victim.").

[^10]: See *Restatement (Second) of Contracts § 153* (1981) ("Where a mistake of one party at the time a contract was made as to a basic assumption on which he made the contract has a material effect on the agreed exchange of performances that is adverse to him, the contract is voidable by him if he does not bear the risk of the mistake.").

[^11]: See *Restatement (Second) of Contracts § 208* (1981) ("If a contract or term thereof is unconscionable at the time the contract is made, a court may refuse to enforce the contract, or may enforce the remainder of the contract without the unconscionable term.").

## Procedural Considerations for Settlement Agreement Enforcement

The enforcement of a settlement agreement may involve various procedural considerations, including:

1. Jurisdiction and venue: The court must have proper jurisdiction over the parties and the subject matter of the dispute, as well as proper venue for the enforcement action.[^12]

2. Pleadings and evidence: The party seeking enforcement must properly plead a breach of contract claim and provide sufficient evidence to prove the elements of the claim.[^13]

3. Discovery and pre-trial motions: The parties may engage in discovery and file pre-trial motions, such as motions for summary judgment, to resolve the enforcement dispute.[^14]

4. Evidentiary standards and burdens of proof: As discussed earlier, the plaintiff bears the burden of proving the breach of the settlement agreement by a preponderance of the evidence, while the defendant bears the burden of proving any affirmative defenses.[^15]

5. Enforcement mechanisms: If the court grants a remedy, such as specific performance or monetary damages, the court may need to employ various enforcement mechanisms, such as contempt of court orders or garnishment of assets, to ensure the defendant's compliance.[^16]

Careful consideration of these procedural aspects is crucial to the successful enforcement of a settlement agreement.

[^12]: See *Kokkonen v. Guardian Life Ins. Co. of Am.*, 511 U.S. 375, 377-78 (1994) (discussing the requirements for a federal court's jurisdiction to enforce a settlement agreement).

[^13]: See *Fed. R. Civ. P. 8(a)* (requiring a "short and plain statement of the claim showing that the pleader is entitled to relief").

[^14]: See *Fed. R. Civ. P. 26-37* (governing discovery) and *Fed. R. Civ. P. 56* (governing summary judgment).

[^15]: See *Lucey v. Hero Commc'ns, Inc.*, 772 F.2d 873, 878 (11th Cir. 1985).

[^16]: See *Restatement (Second) of Contracts § 357* (1