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Agreed JudgmentsThea D. Whalen
Executive DirectorTexas Justice Court Training Center
© Copyright 2018. All rights reserved.No part of this work may be reproduced or transmitted in any form or by any means, electronic or mechanical, including
photocopying and recording, or by any information storage or retrieval system without prior written permission of the Texas Justice Court Training Center unless copying is expressly permitted by federal copyright law. Address inquiries
to: Permissions, Texas Justice Court Training Center, 1701 Directors Blvd, Austin, TX, 78744.
Topics: •Settlement agreements
•Rule 11
•Agreed judgments
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Settlement Agreements
Purpose?
Resolution of the case
What does one look like?
What are the contents?
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Rule 11 What is it?
‘AGREEMENTS TO BE IN WRITING’
Unless otherwise provided in these rules, no agreement between attorneys or parties touching
any suit pending will been forced unless it be in writing, signed and filed with the papers as part of the record, or unless it be made in open court
and entered of record.• TRCP 11
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Does the rule even apply in Justice Courts?
“Application of Other Rules”
The other Rules of Civil Procedure and the Rules of Evidence do not apply except:(1) when the judge hearing the case determines that a particular rule must be followed to ensure that the proceedings are fair to all parties;
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Fair to ALL parties?
Who are the parties?
Does it make a difference?
Intended Purpose vs. Trends
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if it IS being used for a settlement:
“The purpose of TRCP 11 is to avoid disputes over the terms of oral agreements made between attorneys in a pending lawsuit.”
Padilla v LaFrance, 907 S.W. 2d 454, 461 (Tex.1995)
“Oral settlement agreements are unenforceable for rule 11”
Knapp Med Ctr v De La Garza, 238 S.W.3d at 768 (Tex.2007)
Can the court ‘enforce’ the rule 11 settlement agreement?
Yes … but might not be what you think
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‘Enforcing’ a Rule 11• The court is confirming that the agreement was MADE• If it was to settle the case (even if specific terms were
included), the court enforcing it would mean that the agreement exists
• If the agreement exists to resolve the case under certain terms, the enforcement would be the court finds the case is settled and closed
Other issues if the court was to ‘enforce’ a payment plan or
deadline?
Due process violation
No right to trial
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How to make the judgment debtor pay according to the payment plan or other terms?
A new suit for breach of contract
“A settlement agreement is enforceable as a contract even if its terms are not incorporated into the judgment”
Compania Financiara Libano, S.A. v. Simmons, 53 S.W.3d 365 (Tex. 2004)
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“If the accord is in writing, signed by the parties or their attorneys, and filed of record, it does not matter whether a party no longer agrees to it when the trial court is finally asked to enforce it. This is so because the agreement becomes a contract when executed, not when the trial court attempts to enforce it.”
• Coale v. Scott, 331 S.W.3d 829 (Tex.App.-Amarillo 2001, no pet.)
Agreed Judgment • Not actually a rule in TRCP• There is an “Agreed Case” Rule 263:Parties may submit matters in controversy to the court upon an agreed statement of facts filed with the clerk, upon which judgment shall be rendered as in other cases; and such agreed statement signed and certified by the court to be correct and the judgment rendered thereon shall constitute the record of the cause.
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Agreed Judgmentsboth parties sign a judgment with an agreed to amount and possibly
other terms
What is in a judgment?
A judgment must:• clearly state the determination of the rights of the
parties in the case;• state who must pay the costs;• be signed by the judge; and• be dated the date of the judge’s signature.
TRCP 505.1 (C)(1)-(4)
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Should you sign judgments with payment plans, deadlines, etc.?TJCTC opinion is NO
Why?
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impression given to the parties
Contempt
NEVER a remedy to a party failing to pay
cannot be used to force a party follow a payment
schedule
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So how does a judgment creditor ‘make’ a judgment debtor pay?
new lawsuit for breach of contract
Thank you!
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