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Schnurer v. Lynn

United States District Court, S.D. Indiana, Indianapolis Division

August 13, 2019

ERIC B. SCHNURER, et al. Plaintiffs,
v.
DAVID F. LYNN, et al. Defendants.

          ORDER

          Hon. Jane Magnus-Stinson, Chief Judge

         Pending before the Court is Plaintiffs' Motion to Enforce Settlement Agreement, and for Entry of Final Judgment and Other Relief. [Filing No. 80.] The parties to this ERISA matter reached a settlement agreement following a settlement conference with the Magistrate Judge. [See Filing No. 73; Filing No. 78; Filing No. 80-1; Filing No. 81.] That agreement allows for Plaintiffs to file an executed agreed judgment in the event Defendants default on their obligations set forth in an accompanying promissory note. Defendants defaulted, and Plaintiffs filed the agreed judgment. In addition, Plaintiffs filed their Motion to Enforce and a new proposed final judgment. Despite the title of their Motion, several of Plaintiffs' requests seek not to enforce the settlement agreement, but to either amend or litigate it. For the reasons set forth below, the Court GRANTS IN PART and DENIES IN PART Plaintiffs' Motion.

         I.

         Background

         Eric Schnurer brought this lawsuit against Karen Kinder, David Lynn, and Sequoia Consulting Group, Inc. (“Sequoia”) in February 2018 in the Eastern District of Pennsylvania. [Filing No. 1.] At the parties' request, the matter was transferred to this Court on May 15, 2018. [Filing No. 13.] Mr. Schnurer filed an Amended Complaint on July 24, 2018, joining as plaintiffs Daniela Sharfstein, Jennifer Wall, and Stephanie Walsh. [Filing No. 40.] The Magistrate Judge held a successful settlement conference with the parties on November 30, 2018 and directed Plaintiffs to “file a motion to dismiss or close this cause and submit an order for the Court's signature” within thirty days. [Filing No. 73.] The parties received numerous extensions to comply with this directive before Plaintiffs finally filed the instant Motion to Enforce on May 22, 2019. [Filing No. 80.]

         Plaintiffs filed several documents in support of their Motion. The first is the settlement agreement itself. That document provides in relevant part:

         (Image Omitted)

[Filing No. 81-1 at 3-6.] The agreement also contains mutual releases which are void as to the nonbreaching party in event of a breach. [Filing No. 81-1 at 6-8.]

         Pursuant to paragraph 3 of the settlement agreement, Plaintiffs filed an executed Agreed Judgment on May 22, 2019. [Filing No. 80-4.] That document provides in part as follows:

1. JUDGMENT shall lie and is hereby entered in favor of Erie B, Schmircr and against Sequoia Consulting Group, Inc. ("Sequoia"), David P. Lynn ("Lynn"), jointly and severally, in the amount of One Million One Hundred Thousand Dollars and 00/100 ($1, 100, 000.00).
2. This Agreed Judgment resolves all claims set forth in the Amended Complaint against Defendants, which are hereby dismissed with prejudice, and shall constitute the final disposition of this action. This Agreed Judgment shall not be modified unless the party seeking modification demonstrates, by clear and convincing evidence, that it will suffer irreparable harm from new and unforeseen conditions. Changes in the economic conditions of any party shall not be grounds for modification.

[Filing No. 80-4 at 2.] In addition to the settlement agreement and Agreed Judgment, plaintiffs filed the executed promissory note, [Filing No. 80-3], and a new proposed entry and final judgment, [Filing No. 80-5].

         Plaintiffs' Motion to Enforce is now fully briefed and ...


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