Civil Litigation,
California Courts of Appeal
Nov. 14, 2017
Stipulated judgment for more than settlement amount is invalid
Vitatech's holding is a stark reminder that such a provision may be an impermissible penalty that will not be enforced.
Steven H. Kruis
ADR Services, Inc.Email: skruis@adrservices.org
Steven has been a full-time mediator since 2002, and mediated well over 2,000 matters throughout Southern California. He is with the San Diego Office of ADR Services.
May parties to a settlement agree that plaintiff will accept a lesser sum if timely paid by defendant, while also providing for entry of a stipulated judgment for a larger amount if defendant defaults? After all, isn't the reduced amount merely a permissible discount if defendant pays the debt as agreed? Apparently not, according to a recent state appellate court decision, Vitatech International, Inc. v. Sporn, 2017 DJDAR 10381.
<...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In