McCormick v. Dresdale
United States District Court for the District of Rhode Island
2010 WL 1740853 (R.I. 2010)
Marcella Dresdale accused fellow Brown University student William McCormick of rape, leading Brown to force his withdrawal and revoke his scholarship. McCormick denied the allegations and claimed they were false. The parties signed a settlement agreement releasing each other from all claims, including Dresdale's misconduct allegations and McCormick's potential defamation claim. McCormick and his parents (plaintiffs) later sued Dresdale, her parents, Brown, and various administrators (defendants), and the defendants moved to dismiss based on the settlement agreement. The plaintiffs responded that Dresdale's forgone claims, which were the consideration for McCormick's release, had been false and asserted in bad faith.
Whether forbearance from bringing a lawsuit can constitute consideration for a settlement agreement if the party forbearing knows the underlying suit is without merit.