Myerchin v. Family Benefits, Inc

In Myerchin v. Family Benefits, Inc. (2008) 162 Cal.App.4th 1526, the plaintiff entered into a written settlement agreement releasing his breach of contract claim against the defendant in exchange for payments totaling approximately $71,000. (Id. at p. 1530.) The plaintiff also agreed to dismiss the lawsuit within 10 days of executing the settlement agreement. (Ibid.) The defendant made the agreed-upon payments, but the plaintiff refused to dismiss the action. (Ibid.) The defendant then moved for summary judgment, contending the settlement agreement constituted a complete defense to the action. The defendant pointed out it had performed its obligations under the agreement while the plaintiff made no attempt to return the money he had been paid in consideration of the settlement, and further contended the plaintiff could not both retain the money and continue to pursue the litigation. (Ibid.) The plaintiff opposed the summary judgment motion, arguing the settlement agreement was unenforceable on various grounds, including fraud, undue influence and duress. (Myerchin, supra, 162 Cal.App.4th at p. 1531.) The trial court granted summary judgment in favor of the defendant, and the Court of Appeal affirmed, "agreeing with the trial court's determination that the plaintiff's failure to make any effort to actually rescind the agreement, specifically including any offer to refund the money he received in consideration of the settlement, precluded his assertion that the agreement could not be relied upon to defeat his claim." (Id. at pp. 1529-1530.)