Memorandum of understanding was not a binding settlement agreement
LG Electronics, Inc. v. ASKO Appliances, Inc. f/k/a AM Appliance Group, Inc.; ASKO Appliances AB; Daewoo Electronics America, Inc., and Digital Symphony Corp., Civil Action No. 08-828-RGA, June 21, 2012.
Andrews, J. Motion to enforce settlement agreement is denied.
The parties entered into settlement discussions and stayed the action for a period of sixty days with a right to reopen if the settlement was not consummated. The parties then agreed to a Memorandum of Understanding (“MOU”) outlining the contours of their settlement discussions and continued to negotiate. Shortly before the sixty day period lapsed, defendant advised the Court that the parties were unable to reach settlement; plaintiff disagreed and moved to enforce the purported settlement agreement. The motion was denied. An objective reasonable negotiator, in light of the parties’ negotiations, the words in the MOU, and the practical implications of the missing terms, would not conclude that the parties were bound by the MOU.
