Kennedy v. Hyde
Texas Supreme Court
682 S.W.2d 525 (1984)
- Written by Jody Stuart, JD
Facts
Richard Hyde (plaintiff) sued Forrest Kennedy (defendant), and others not appealing, in trial court regarding a sale of stock in a bank. Kennedy counterclaimed. The parties held out-of-court settlement negotiations that resulted in the drafting and signing of documents settling the suit. All parties except Kennedy signed the documents. Hyde then amended his pleading to allege that Kennedy had entered into an oral settlement agreement despite Kennedy’s refusal to sign the settlement documents. Kennedy amended his pleadings to deny entering into any settlement agreement. The trial court ordered a separate trial on the existence and validity of the alleged oral agreement. The trial court rendered judgment against Kennedy, effectively enforcing the terms of the settlement agreement. The court of appeals affirmed, holding that Rule 11 of the Texas Rules of Civil Procedure (Rule 11) did not prohibit the enforcement of disputed oral settlement agreements.
Rule of Law
Issue
Holding and Reasoning (Robertson, J.)
Dissent (Gonzalez, J.)
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