Heres v Reese
Attorneys and Parties
Brief Summary
Enforcement of a mediated settlement agreement via CPLR 3213 [procedure allowing summary judgment in lieu of complaint when the action is based on an instrument for the payment of money only] and dismissal of a confidentiality-breach counterclaim under CPLR 3211(a)(7) [motion to dismiss for failure to state a cause of action], including whether the entire unpaid balance could be accelerated and whether attorneys' fees were recoverable.
Granted plaintiff summary judgment in lieu of complaint, awarded attorneys' fees, entered judgment for the entire unpaid balance of the settlement ($144,000), and dismissed defendant's counterclaim alleging breach of a confidentiality clause.
The award of attorneys' fees and the judgment for the entire remaining settlement balance; the monetary award was limited to past-due installments of $24,500.
The settlement agreement was an instrument for the payment of money only and the defendant defaulted, but the agreement lacked an acceleration clause, so only past-due installments were recoverable. There was no contractual, statutory, or court rule basis for attorneys' fees. The confidentiality-breach counterclaim failed to plead damages.
Background
After mediation, the parties executed a settlement agreement in which the defendant agreed to pay $200,000 on a set installment schedule. The defendant defaulted, leaving $24,500 in missed installments as of July 2021. The plaintiff moved for summary judgment in lieu of complaint under CPLR 3213 and sought attorneys' fees and the full unpaid balance. The defendant opposed and counterclaimed that the plaintiff breached the settlement's confidentiality provision.
Lower Court Decision
The Supreme Court, Nassau County, granted plaintiff's CPLR 3213 motion, awarded attorneys' fees, entered judgment for the entire remaining balance of the settlement ($144,000), and dismissed the defendant's counterclaim under CPLR 3211(a)(7).
Appellate Division Reversal
Modified: denied attorneys' fees and limited recovery to $24,500 in past-due installments because the settlement lacked an acceleration clause; otherwise affirmed, including summary judgment for plaintiff under CPLR 3213 and dismissal of the counterclaim under CPLR 3211(a)(7) for failure to plead damages.
Legal Significance
Confirms that a settlement agreement requiring installment payments can qualify as an instrument for the payment of money only under CPLR 3213; absent an acceleration clause, only past-due installments are recoverable on default. Attorneys' fees require a contractual, statutory, or rule-based predicate. A breach-of-confidentiality claim must plead cognizable damages to survive CPLR 3211(a)(7).
Without an acceleration clause, a plaintiff enforcing a settlement under CPLR 3213 may recover only past-due installments, and attorneys' fees are unavailable absent a specific contractual or statutory basis; confidentiality-breach claims must allege damages.