FERRARA v. UNION COUNTY PROBATION DEPARTMENT et al

Filing 40

OPINION. Signed by Magistrate Judge Steven C. Mannion on 05/16/2018. (ek)

Case 2:16-cv-09250-JLL-SCM Document 40 Filed 05/17/18 Page 1 of 7 PageID: 381

UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY

NOT FOR PUBLICATION
STEVEN FERRARA,
Plaintiff,

Civil Action No.
2: 16-cv-9250-JLL-SCM

V.

UNION COUNTY PROBATION
DEPARTMENT, UNION COUNTY
CRIMINAL CASE MANAGEMENT,
UNION COUNTY, STATE OF NEW
JERSEY, UNION COUNTY SHERIFF’S
DEPARTMENT, RAYMOND REYNOLDS,
CHRISTINE SHALAYDA, JAMES
MUDRAK, WENDI CABELL, et al.,

OPINION
ON MOTION TO ENFORCE
SETTLEMENT AGREEMENT
[D.E. 34J

Defendants.

STEVEN C. MANNION, United States Magistrate Judge.
Before the Court is Defendants’, Union County and the Union County Sheriffs
Department (collectively ‘Union County Defendants”), Motion to

Enforce

Settlement

Agreement. The parties consented to disposition of the motion by the undersigned.2 There was
no oral argument. Upon consideration of the parties’ submissions and for the reasons set forth
herein, Defendants’ Motion to Enforce Settlement Agreement is GRANTED.

(ECF Docket Entry (“D.E.”) 34, Defs.’ Mot. To Enforce Settlement Agreement).
2

(D.E. 39, Consent to Magistrate Judge Disposition).

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BACKGROUND AND PROCEDURAL HISTORY

I.

The settlement agreement in dispute stems from a Section 1983 claim by plaintiff, Steven
Ferrara (“Mr. F errara”). The parties conducted settlement negotiations during the month of
September 2017. On September 29, 2017, the parties sent several emails back-and-forth
discussing settlement payout amounts, attorney fees, medical costs, payment instrnctions,4 and Mr.
F errara’s outstanding warrant in Somerset County.3 Later that day, the parties entered into a global
settlement agreement in which Mr. Ferrara was to receive a total of$ 12,000.00 from the defendants
($6,000.00 from the State of New Jersey and $6,000.00 from Union County, collectively) and
would be responsible for his own attorney fees and medical costs.6 The agreement provided that
Mr. ferrara’s outstanding warrant in Somerset County would not be affected by the agreement.7
The Union County Defendants drafted the settlement agreement and sent it to Mr. Ferrara’s
attorney on October 4, 2017.8 Mr. Ferrara never signed the agreement.9
On October 12, 2017, Mr. F errara’s counsel advised the Union County defendants that Mr.
Ferrara was arrested in Somerset County for a violation of his probation and was detained in
Somerset County jail. 10 The parties continued to arrange for Mr. Ferrara to execute the settlement

(D.E. 34-2, Ex. A, Ex. B, Ex. C).
(D.E. 34-2, Ex. A, Ex. B, Ex. C).
(D.E. 34-2, Ex. B).
6

‘

8

(D.E. 38, Ex. A, at 2—3).
(D.E. 34-2, Ex. B).
(D.E. 38, Ex. A, at 1).
(D.E. 38, Ex. A, at 2—3).

10

(D.E. 34-2, Ex. D).

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agreement. On October 17, 2017, Mr. Ferrara’s attorney wrote to this Court that the parties have
agreed to settle.
On November 21, 2017, Mr. Ferrara’s attorney arranged to meet with Mr. Ferrara at
Somerset County Jail to execute the settlement agreement. However, at that time, Mr. F errara
refused to sign, explaining that he was angry that Somerset County had him arrested.’2 Mr. F enara
also claims that shortly after agreeing to settle with the Union County defendants, Somerset County
had him arrested and penalized him by not allowing him in to Drug Court as he had been in the
past. 13
On November 27, 2017, Mr. F errara’s attorney wrote to the Court confirming that the
parties agreed to settle but Mr. Ferrara had not signed the agreement yet.’4 Mr. F errara’s attorney
requested a telephone conference with the Court. On December 1, 2017, while conferencing with
the Court, Mr. ferrara’s attorney stated that Mr. Ferrara was no longer agreeable to the terms set
forth in the settlement agreement. Consequently, the Court granted leave to the Union County
Defendants to file a Motion to Enforce Settlement Agreement.

“(D.E. 34-2, Ex. E).
12

(D.E. 34-1, Defs.’ Br., at 4).

‘

(D.E. 36, Certification of Steven Ferrara, at ¶ 10).

14

(D.E. 29, Letter from P1. to the Ct.).

‘

(D.E. 33, Order).
3

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II.

LEGAL STANDARD

A federal court may apply the substantive law of the forum state in deciding questions
pertaining to the construction and enforcement of contracts.’6 Under New Jersey law, a settlement
agreement between parties to a lawsuit is itself a contract that is separate and independent from
the underlying dispute. New Jersey public policy favors settlements. Courts will therefore “strain
to give effect to the terms of a settlement wherever possible.”7
“Traditional contract law rules provide that a contract arises from the manifest intentions
of the parties to engage in an offer and acceptance of sufficiently definite essential terms.”18 The
burden is on the moving party to establish that the parties entered into a contract of settlement.’9
In order to have an enforceable settlement or contract there “must be a meeting of the minds
for each material term to an agreement.”2° “A meeting of the minds occurs when there has been a
common understanding and mutual assent of all the terms of a contract.”21 Objective
manifestations of intent are controlling when determining if there was a meeting of the minds.22

‘6Excelsior Insurance Co. v. Pennsbttiy Pain Center, 975 F. Supp. 342, 349 (D.N.J. 1996); Life
Ins. Co. v. Hayes-Green, No. 07-cv-2492 (WJM), 2008 WL 2119976, at *1 (D.N.J. May 20,
200$).
‘

Trainer v. Anderson, Civil Action No. 2:12-CV-2409-SDW-SCM, 2017 WL 5622504 (D.N.J.
Nov. 1,2017).
‘

Longo v. First Nat. Mortg. Sources, 523 F. App’x. 875, 878 (3d Cir. 2013) (internal citations
omitted).
19

LNTMerch. Co., 2009 WL 2169236, at *1 (D.N.J. July 21, 2009)(internal citations omitted).

Barton v. Mid-Atl. Flooring Ventttres Inc., No. 13-4592, 2016 WL 4119803, at *4 (D.N.J.
Aug. 1, 2016) (internal quotations and citations omitted).
20

“

21

“ Id. (citing Knight v. New England Mitt. Lfe Ins. Co., 220 N.J. Super. 560, 565 (App. Div.
1987)).

22

See Brawer v. Brawer, 329 N.J. Super. 273, 283 (App. Div. 2000) (“A contracting party is bound
by the apparent intention he or she outwardly manifests to the other party. It is immaterial that he

4

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“Where a contract of settlement is actually held to exist.. .the party seeking to vacate the
settlement must show compelling circumstances.

In general, settlement agreements will be

honored absent a demonstration of fraud or other compelling circumstances.

.

.

.

Before vacating

a settlement agreement, our courts require clear and convincing proof that the agreement should
be vacated.”24

III.

DISCUSSION

Union County has satisfied its burden of establishing that an enforceable settlement
contract exists, and Mr. F errara has failed to show “compelling circumstances” that warrant
vacating the settlement. The Court finds that the parties reached an agreement to settle this matter
on September 29, 2017. The parties manifested an intent to engage in an offer and acceptance of
$12,000 to settle the claims in this case and end litigation on issues discussed in this case. The
Court further finds that the parties manifested an intent to be bound by the agreement via e-mail
on September 29, 2017, with a formal written contract to be executed subsequently. Even Mr.
Ferrara admits that he agreed to settle the case, stating in his Certification that

“...

I have agreed

to settle my lawsuit with the Defendants in this litigation.

or she has a different, secret intention from that outwardly manifested.”); Leitner v. Braen, 51 N.J.
Super. 31, 38 (App. Div. 1958) (“The phrase, ‘meeting of the minds,’ can properly mean only the
agreement reached by the parties as expressed, i.e., their manifested intention, not one secret or
undisclosed, which may be wholly at variance with the former.”).
23Bowtes v. New YorkLiberty, 11-3529(ES), 2014 WL 7148916, at *2 (D.N.J. Dec. 15, 2014)
(quoting Amatuzzo v. Kozmiuk, 305 N.J. Super. 469, 475, 703 A.2d 9 (App. Div. 1996)).
24Nolan by Nolan v. Lee Ho, 120 N.J. 465, 472 (1990) (internal quotations omitted).
25

(D.E. 36, Certification of Steven F errara, at ¶ 9).
5

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Now that the Court has found that a settlement contract exists, the burden shifts to Mr.
Ferrara to show whether compelling circumstances exist to vacate the settlement. It is well
established that “the party seeking to set aside the settlement agreement has the burden of proving
extraordinary circumstance[sj sufficient to vitiate the agreement.”26
Mr. Ferrara objects to the settlement agreement because he claims that he entered into the
agreement to eliminate harassment from a non-party, Somerset County Probation Department.
Harassment by a non-party, or whatever motivates settlement, does not warrant vacating
settlement, absent fraud. His unsupported allegations against a non-party in this matter fail to meet
his burden of clear and convincing evidence of compelling circumstances required to vacate a
settlement agreement.
Mr. Ferrara also argues that Somerset County had him arrested and retaliated against him
by not allowing him into drug court as he has been in the past. This court has no jurisdiction over
Somerset County Probation Department, a non-party in this case. Further, during negotiations, the
parties discussed the issue of lvii. Ferrara’s outstanding warrant and how the settlement would have
no effect on the warrant. Union County advised Mr. Ferrara of his outstanding warrant27 and yet
he still entered into the agreement, implying that it was not material to the settlement with Union
County. Further, Mr. Ferrara did not pursue the issues related to his outstanding warrant in
Somerset County or the alleged harassment by Somerset during settlement negotiations nor in this

26

Jennings v. Reed, 381 N.J. Super, 217, 227 (App. Div. 2005); see also Bowtes v. New York
Liberty, No. CW.A. 11-3529 ES, WL 7148976 (D.N.J. 2014); Katir v. AssitredLending Corp.,
405 N.J. Super. 468 (App. Div. 2009); Smith v. fireworks By Girone, Inc., 380 N.J. Super. 273
(App. Div. 2005); AT& TCorp. v. Twp. OfMorris, 19 N.J. Tax 319 (2000).
27

(D.E. 34-2, Ex. B).
6

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letter to this Court, and his later discussion of these issues after the settlement indicates nothing
but buyer’s remorse.
The burden to vacate settlement rests on Mr. F errara yet he has failed to demonstrate that
the settlement was entered through fraudulent or coercive means or that he lacked the legal
standing or capacity to enter into either the settlement agreement via email or the subsequent
written agreement. Accordingly, the Court finds that Mr. Ferrara has failed to meet his burden to
show compelling circumstances that would warrant vacating the settlement.
An appropriate Order shall follow.

*

*

L.__

Honorable Steve Mannon, U.S,M,J.
United States District Court,
for the District of New Jersey
phone: [phone]$27

1?ICT C°
5/16/2018 6:41:13 PM

Original: Clerk of the Court
cc: All parties
File

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