Michael W. Mitchell, left, and Edward Roche, right, of Smith Anderson in Raleigh, North Carolina. Be Careful What You Include in a Settlement: 4th Circuit Blocked Future Litigation on a Related Issue
Fourth Circuit decision reminds litigants that settlement agreements can have far-reaching effects on the relationship between the parties.
November 18, 2021 at 11:45 AM
5 minute read
Contracts
A recent decision of the U.S. Court of Appeals for the Fourth Circuit addressed a dispute concerning a ship repair contract that the U.S. Navy signed with a company called East Coast Repair. East Coast Repair claimed the Navy owed money for the repairs. But the court's decision turned not on the ship repair contract, but on a settlement agreement the parties had recently signed to resolve a separate lawsuit on a separate contract. Based on its interpretation of the settlement agreement, the court held that East Coast Repair had settled and released the later claim.
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