Legal Question in Personal Injury in California
I had a verbal settlement agreement that the defendant proposed that would limit their liability to a maximum judgment and guarantee me a low sum even if the case came back in their favor. They won the case and now are seeking costs from me because the settlement agreement didn't mention any waiver of costs because I figured it was assumed that each would bear their own costs. Isn't is assumed in an informal settlement agreement that each side will bear its own costs? There was no express terms to release them in the emails we went each other either but that was assumed as part of the settlement. Am I crazy here or are they being bullies?
5 Answers from Attorneys
If it is not in writing, then it does not exist. There are reasons why people hire lawyers, and this certainly would be one of those reasons.
Good luck.
Unfortunately, all terms of a settlement agreement should be in a signed writing or recited on the record before the court so that there is a record. One cannot assume terms that are not agreed to. Of course, you might bring a motion to strike or tax costs based upon your understanding of the agreement. If anything, the court might find that at least some of the costs are excessive or not allowable under the statute.
I agree with Mr. Lupoff and Mr. Cohen. But even with a written settlement, the winning party presumptively *is* entitled to recover fees unless the agreement expressly says otherwise. That's the opposite of what you thought the law would presume. As Mr. Cohen notes, one of the reasons why litigants hire lawyers is that their own understanding of the law is often wrong and/or incomplete.
I mistakenly referred to "fees" in my prior answer when I meant to say "costs". The word "fees" in this context usually means attorney fees, while "costs" means costs of suit. Attorney fees can be a recoverable cost in some cases, but they usually aren't.
I apologize if my mistake caused any confusion.
You don't have a settlement agreement. You have a judgment against you. Settlement offers and discussions are not the same as an agreement.