Dweck v. Nasser
Court of Chancery of Delaware
C.A. No. 1353-VCL (2008)
Dweck (plaintiff) and Nasser (defendant), co-owners in a corporation, ended up in litigation after Nasser dismissed Dweck as president; each retained separate settlement counsel, with Nasser choosing Shiboleth, his longtime friend and primary attorney of over 20 years, even though Nasser had separately retained Heyman as his attorney of record in the underlying litigation. After months of stalled negotiations over Nasser's preconditions, Nasser told Heyman he wanted to settle, would drop his preconditions, and had instructed Shiboleth to "get it done"; Shiboleth similarly reported that Nasser had told him to settle. After a final draft meeting Nasser's demands was circulated and Shiboleth reported Nasser's consent, Nasser refused to sign, claiming he hadn't seen the final version and had never authorized Shiboleth to settle on his behalf - though Shiboleth's later letter recounted numerous occasions when Nasser told the Dweck family and both attorneys that he didn't intend to personally read the agreement and would sign whenever Shiboleth told him to. A motion to enforce the settlement was filed.
Whether an attorney can acquire authority as an agent to bind a client to a settlement agreement, even where the client denies that any principal-agent relationship existed.