When the parties to a dispute negotiate a settlement agreement, they generally memorialize their agreement in a written document and sign it. But what happens when the parties negotiate a draft settlement agreement, one party makes changes to the draft, the other party accepts those changes and requests a signature, but the party who had proposed the changes does not sign the document?
In Centrans Truck Lines v. Orient Express Container Co., U.S. District Judge Mary Kay Vyskocil of the Southern District of New York examined this question. Specifically, the court analyzed whether a motor carrier had plausibly alleged a claim for breach of a settlement agreement against a common carrier concerning a dispute over unpaid invoices. The motor carrier had sent the common carrier a draft settlement agreement, the common carrier revised the draft in redline, the motor carrier accepted the changes and requested that the common carrier sign the document, but the common carrier did not do so.
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