You’ve Got Contract: An Email Establishes Binding Settlement in the Second Circuit
A recent Second Circuit opinion provides a reminder of the importance of reserving rights pending final documentation and the risks of being bound despite the absence of definitive agreements in place, writes Rama Douglas of Kramer Levin Naftalis & Frankel.
The circuit upheld the bankruptcy court’s and district court’s ruling that an email by defendant’s counsel to the opposing side stating that the defendant will sign a settlement agreement creates a binding contract even if the defendant later chooses not to sign the settlement agreement.
The case is Shinhan Bank v. Lehman Brothers Holdings Inc.