Lawsuits are often resolved through a stipulation of settlement. However, as suggested by a variety of recent decisions in Long Island cases by the Appellate Division, Second Department, that does not mean that the court battles are necessarily over. In some cases, litigation continues over the terms, meaning, validity and enforceability of a stipulation of settlement itself.
A stipulation of settlement is a contract subject to principles of contract interpretation.[1]� Accordingly, when the terms of a stipulation of settlement are clear and unambiguous, courts will examine the document to determine the intent of the parties and will give a practical interpretation to the language employed and the parties’ reasonable expectations.
