Hayes v. National Service Industries, Inc.
United States Court of Appeals for the Eleventh Circuit
196 F.3d 1252 (1999)
Hayes (plaintiff) sued her former employer, National Linen Service, and its parent, National Service Industries, Inc. (National) (defendant), for wrongful termination. Hayes's attorney told National's attorney he had authority to settle for $15,000, and the two attorneys reached a settlement at that amount. Hayes later rejected the settlement, claiming she had never actually consented to it. National moved to enforce the settlement, and a magistrate judge found Hayes's attorney had apparent authority to settle regardless of whether Hayes herself had consented. The district court adopted that finding and dismissed Hayes's complaint, and Hayes appealed.
Whether an attorney has apparent authority to bind a client to a settlement agreement when the client's limitations on that authority were never communicated to the opposing party.