This opinion will be unpublished and
may not be cited except as
provided by
Minn. Stat. sec. 480A.08, subd. 3 (1998).
STATE OF MINNESOTA
IN COURT OF APPEALS
Rory J. Pietsch,
Respondent,
vs.
Michael J. Darling,
Appellant,
Estate of Clinton N. Darling, et al.
Defendants.
Filed April 11, 2000
Toussaint, Chief Judge
Chisago County District Court
File No. CX97458
William F. Mohrman, Mohrman
& Co., P.A., 4100 Multifoods Tower, 33 South Sixth Street, Minneapolis,
MN 55402 (for respondent)
David J. Van House, Van House
& Associates, P.A., 407 Edina Executive Plaza, 5200 Willson Road, Edina,
MN 55424 (for appellant)
Considered
and decided by Toussiant, Chief Judge, Kalitowski, Judge, and Huspeni, Judge.*
TOUSSAINT, Chief Judge
After
a dispute arose involving the balance due on a contract for deed between
appellant Michael J. Darling and respondent Rory J. Pietsch, Darling served
notice of cancellation under Minn. Stat. § 559.21 (1996). Ultimately, at a pretrial hearing at which
Darling represented himself, the parties entered into a settlement agreement on
the record. After Darling attempted to
withdraw from the settlement agreement, the district court granted respondent
Pietsch's motion to enforce it. Because
the district court did not abuse its discretion or err as a matter of law, we
affirm.
D E C I S I O N
An appeal from a decision on a motion to enforce a
settlement agreement is reviewed under an abuse of discretion standard. See Johnson v. St. Paul Ins. Co., 305 N.W.2d
571, 573 (Minn. 1981) (stating that vacating stipulation of settlement is
within discretion of district court, whose action will not be reversed unless
arbitrary). “The settlement of a
lawsuit is contractual in nature.” St. Paul
Fire & Marine Ins. Co. v. National Chiropractic Mut. Ins. Co.,
496 N.W.2d 411, 415 (Minn. App. 1993) (citations omitted), review denied (Minn. Apr.
29, 1993). Absent ambiguity, the
construction and effect of a contract are questions of law. Trondson v. Janikula, 458 N.W.2d 679, 681
(Minn. 1990). This court need not defer
to the district court determinations on questions of law. Frost-Benco Elec. Ass’n v. Minnesota Pub. Utils.
Comm’n, 358 N.W.2d 639, 642 (Minn. 1984).
Courts favor settlement of disputes without
litigation. Johnson, 305 N.W.2d at
573. The party who seeks vacation of a
settlement has the burden of showing that there are sufficient grounds to do
so. Id.
Darling argues that a careful review of the record of the
settlement discussion shows that he never affirmatively accepted the terms of
the agreement. An acceptance occurs if
the acts are “deemed a manifestation of assent when evaluated under an
objective standard.” Holman
Erection Co. v. Orville E. Madsen & Sons, Inc., 330 N.W.2d 693,
695 (Minn. 1983) (citation omitted).
The matter had been set for a pretrial conference when
Pietsch’s counsel advised the court that the parties had agreed to settle. After some discussion in which Darling, who
was appearing pro se, expressed his desire to discuss the matter with an
attorney, the district court advised Darling that he must decide whether to
agree to the settlement. The district
court said the settlement appeared reasonable and went on to state:
And
you acknowledge that I’ll give you a ten-day period of time that unless I am
convinced after counsel of your choice talks with [Pietsch’s attorney] and
approaches me, unless I’m convinced there is a valid reason to withdraw, then
the agreement you’re agreeing to is going to be final. Is that all right with you?
Darling responded, “Works
with me.” Darling’s claim that this
does not objectively constitute a manifestation of assent has no merit.
Darling also argues that the district court has a duty to
ensure fairness to a pro se litigant by allowing reasonable accommodations so
long as the adverse party is not prejudiced.
Kasson
State Bank v. Haugen, 410 N.W.2d 392, 395 (Minn. App. 1987). The district court did ensure fairness when
it reviewed the agreement, which allowed Darling to contact an attorney, and
specifically found it was reasonable.
Next, Darling claims that he complied with the terms of
the agreement. There is no evidence
that he did so; he did not contact Pietsch’s counsel or provide a valid reason
for withdrawing. As the district court
found, “[t]he reason Mr. Darling apparently advances is that he struck a bad
bargain.” Even in his appellate brief,
Darling does not provide a specific reason for wishing to withdraw, other than
stating that he decided to reject the agreement once he sought the advice of an
attorney. We agree that this does not
constitute a valid reason.
Darling also argues that he should be released from the
agreement based on a mutual mistake theory.
See
Speckel
v.
Perkins, 364 N.W.2d 890, 893 (Minn. App. 1985) (holding that when
the defendant’s attorney sent an offer of settlement that was internally
inconsistent, it raised a presumption of error and imposed a duty to
investigate). Darling does not argue that there was any internal inconsistency
in the agreement, but simply contends that he subjectively understood there was
no settlement until he had the opportunity to review the agreement with
counsel. Contracts are enforced
objectively, not subjectively. Cederstrand
v. Lutheran Bhd., 263 Minn. 520, 532, 117 N.W.2d 213, 221
(1962). Consequently, Darling cannot
prevail in this argument.
Darling also argues that this case should be analyzed in
a manner analogous to Minn. R. Civ. P. 60.02 to find that he made an excusable
mistake. See Gould v. Johnson, 379 N.W.2d
643, 646 (Minn. App. 1986) (analyzing district court decision denying motion to
set aside settlement under Minn. R. Civ. P. 60.01, .02), review denied (Minn. Mar.
14, 1986). Unlike Gould, the district court
here did not analyze the case under this rule. This court cannot address an
issue not decided by the trial court. Thiele v.
Stich, 425 N.W.2d 580, 582 (Minn. 1988).
We also address Darling’s contention that the equitable
remedy of rescission should relieve him of the settlement, based on his
understanding of the agreement and because he acted promptly in seeking relief
and Pietsch was not prejudiced. “Equity
will set aside a release and settlement if improvident or unconscionable and will
prevent one party from taking an unconscionable advantage of another’s
mistake.” Jacobs v. Farmland Mut. Ins. Co.,
377 N.W.2d 441, 444 (Minn. 1985) (citation omitted). Darling’s allegations do not show the settlement should be set
aside on equitable grounds.
Finally, Darling argued that he was given insufficient
notice of the hearing on Pietsch’s motion to enforce the settlement. Because Darling has not shown prejudice, he
cannot prevail. Brault v. Acceptance Indem. Ins. Co.,
538 N.W.2d 144, 149 (Minn. App. 1995), review denied (Minn. Nov. 21, 1995).
The district court did not abuse its discretion or commit
errors of law when it granted Pietsch's motion to enforce the parties'
settlement agreement.
Affirmed.
* Retired judge of the Minnesota Court of Appeals, serving by appointment pursuant to Minn. Const. art. VI, § 10.