Paulucci v. General Dynamics Corp.

Jeno Paulucci (plaintiff) leased warehouse property to General Dynamics Corporation (GDC) (defendant). During the lease term, GDC polluted and contaminated the lease property. Paulucci filed a pollution action against GDC, which Paulucci and GDC ultimately settled. In the settlement agreement, GDC agreed to (1) pay Paulucci $3 million; (2) obtain a No Further Action (NFA) letter from the Florida Department of Environmental Protection (DEP) within 15 months indicating that contamination remediation at the site was completed; and (3) if the NFA letter was not obtained within 15 months, GDC agreed to pay Paulucci ongoing monthly damages until an NFA letter was obtained. The trial court approved the settlement agreement and incorporated it into the final judgment. In the final judgment, the trial court specifically retained jurisdiction to enforce and interpret the settlement agreement. Subsequently, Paulucci filed a motion under the settled action to enforce the settlement agreement’s terms, alleging that GDC was noncompliant. The trial court denied the motion, holding that a claim for breach of the settlement agreement must be filed in a new and separate action. On appeal, the appellate court affirmed, holding that even if the settlement agreement was incorporated into the final judgment, a claim for breach of the agreement’s terms must be raised in a new action and could not be addressed through motion practice under the settled action. Paulucci appealed.