East Coast Fresh, LLC et al v. CIA Food Corporation Supermarket et al

Filing 12

MEMORANDUM OPINION. Signed by Judge Paula Xinis on 9/21/2018. (jf3s, Deputy Clerk)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MARYLAND
EAST COAST FRESH, LLC, et al.,

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Plaintiffs,

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v.

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CIA FOOD CORPORATION,
d/b/a FOOD KING SUPERMARKET,

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Defendant.

Civil Action No. 8:17-cv-3662-PX

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MEMORANDUM OPINION

On May 2, 2018, Plaintiffs East Coast Fresh, LLC, and Coastal Sunbelt Produce, LLC,
moved for entry of final order and judgment against Defendant CIA Food Corporation d/b/a
Food King Supermarket (“Food King”) due to Food King’s violation of the parties’ confidential
settlement agreement (“Agreement”). ECF No. 9. District courts maintain inherent equitable
authority to enforce settlement agreements. Hensley v. Alcon Labs., Inc., 277 F.3d 535, 540 (4th
Cir. 2002). Exercising such authority effectively amounts to entry of judgment by consent. Id.
A court enforcement of a settlement agreement does not require the parties to seek such relief by
initiating a new cause of action when the request for enforcement arises “within the context of
the underlying litigation.” Id.
A court will enforce a settlement agreement only after finding that (1) the parties reached
a complete agreement and (2) its terms and conditions are ascertainable. Id. at 540–541. Where
both conditions are satisfied, the court may enforce the agreement summarily so long as any
proffered excuse for non-performance is comparatively insubstantial. Id. at 540; see also Loc. R.
105(6). A court must hold a plenary hearing only where parties dispute the existence or validity

of a settlement agreement. Med. Shoppe Int’l, Inc. v. Siddiqui, 549 F. App’x 131, 134 (4th Cir.
2013).
Here, the parties reached a complete settlement agreement with precise, detailed, and
unambiguous terms and conditions. ECF No. 9-2 at 2–7. The agreement was signed by the
parties and their counsel. Id. at 6–7. Food King then violated the agreement and has not taken
curative action within the stipulated grace period. ECF No. 9-1 at 2. Plaintiffs moved to enforce
the agreement in conformance with the parties’ stated procedures. ECF No. 9-2 at 3–4. Because
Food King has not disputed the existence or validity of the agreement, this Court may summarily
enforce the settlement agreement. Food King must pay the settlement amount in full, including
additional costs associated with this motion, as agreed upon by the parties. ECF No. 9 at 2; ECF
No. 9-2 at 4. Although the additional attorneys’ fees marginally exceed the guidelines published
in the Local Rules, the amounts remain reasonable given counsel’s experience in this area of law.
See ECF No. 9-1 at 4; Loc. R. App. B.
Accordingly, for the above-stated reasons, the Court will enforce the settlement
agreement by separate order in the form agreed upon by the parties. A separate Order follows
and will be docketed under seal.

Dated: September 21, 2018

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Paula Xinis
United States District Judge