Tuesday, December 3, 2013

New England Educational Training Service, Inc. v. Silver Street Partnership case brief

New England Educational Training Service, Inc. v. Silver Street Partnership case brief summary
528 A.2d 1117 (1987)

The Bennington Superior Court (Vermont) granted plaintiff corporation's motion for summary judgment in its action to enforce a settlement agreement with defendant partnership. The partnership appealed.

The partnership was the record owner of a parcel of real estate encumbered by a mortgage in favor of the corporation. After the corporation acquired the parcel, it notified the partnership about the outstanding encumbrance. When the parties were unable to settle the dispute, the corporation filed a foreclosure action against the partnership. The trial court granted summary judgment to the corporation on the basis of a settlement agreement the trial court found was made by the parties' attorneys and enforceable against the partnership.


  • On appeal, the court determined that the partnership's counsel had permission or authority to enter into the disputed settlement agreement. 
  • However, the court found no evidence that the partnership's counsel was expressly authorized to agree to the amount of the settlement. 
  • The court held that there was no implied authority to reach an agreement binding on the partnership. 
  • Also, the court held that there was no apparent authority to reach a binding settlement agreement. 
  • Therefore, the court concluded that summary judgment was improper.

The court reversed and remanded the trial court's decision granting summary judgment to the corporation.

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