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Fedders Corporation v. David Distributing Company, Eugene F. Alexander, and Rita M. Alexander
Citations: 710 F.2d 452; 1983 U.S. App. LEXIS 26400Docket: 83-1159
Court: Court of Appeals for the Eighth Circuit; June 24, 1983; Federal Appellate Court
The case involves Fedders Corporation (Appellee) and David Distributing Company, along with its owners Eugene and Rita Alexander (Appellants), regarding a settlement agreement made by the defendants' attorney. Fedders sued for debts owed by David Distributing, which the Alexanders guaranteed, and the defendants counterclaimed for breach of contract. After negotiations, the parties reached a settlement where the defendants agreed to pay Fedders $105,000. However, issues arose when the Alexanders were not named in the settlement documents, leading to their refusal to sign. Fedders sought to enforce the settlement, and the court ruled in Fedders' favor after a hearing. The defendants appealed, claiming their attorney lacked the authority to bind them to the settlement terms, particularly concerning the waiver of counterclaims. The appellate court reviewed the record and determined that the lower court was justified in finding that the defendants did not prove their attorney lacked actual authority to enter into the settlement. Consequently, the appellate court affirmed the lower court's decision based on its reasoning.