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New England Educational Training Service, Inc. v. Silver Street Partnership

Supreme Court of Vermont
528 A.2d 1117 (1987)


Silver Street Partnership (Silver Street) (defendant) was the record owner of a parcel of real property. New England Educational Training Service, inc. (NEET) (plaintiff) held a mortgage on the property, of which Silver Street was unaware when it purchased the property. Silver Street learned of the mortgage shortly after its purchase and attempted negotiating the discharge of the encumbrance. Silver Street hired an attorney, Evans, and gave him general authority to resolve the mortgage issue, including authority for settlement. Evans had authority for and did offer NEET $10,000 to settle, but NEET did not accept. Evans was not given specific authority thereafter to settle with NEET. However, Evans eventually settled the claim with NEET for $60,000. Silver Street refused to honor the settlement and NEET filed a foreclosure action. NEET moved for summary judgment. The trial court granted NEET’s motion, finding the parties’ attorneys had authority to and did settle the matter.

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