The New Jersey Appellate Court recently ruled that a settling party could not back out of a settlement agreement by blaming their attorney for ineffective representation.

In the case of Hewitt v. Kingdom Builders Association, the plaintiff filed suit against the defendant due to a dispute over heating and air condition services provided by Kingdom Builders.  The parties agreed to attend mediation, and were able to reach a settlement agreement.  Both parties had counsel present at the mediation.  After the mediation, defendants filed a motion to vacate the settlement agreement, arguing that their attorney failed to adequately represent their interests.  The court denied their motion, and defendant appealed.  On appeal, the court upheld the trial court’s decision, noting that a settlement agreement cannot be set aside due to a change of heart or unhappiness with counsel’s performance.

This case highlights the importance of fully evaluating a settlement offer and ensuring that defense counsel and client are on the same page prior to mediation.

Thanks to Heather Aquino for her contribution to this post.