When parties reach a settlement at a mediation, and memorialize their agreement in writing, the obvious expectation is that both parties will perform their obligations. Of course, it doesn’t always work out that way, and so the writing should also address the remedies for any breach.
There are essentially two choices: if one party fails to perform, is the non-breaching party’s remedy simply to enforce the agreement? Or does a material breach “blow up” the settlement and restore the parties to their pre-settlement positions? This question was recently addressed by a Massachusetts District Court in Pazol v. Tough Mudder Inc., 384 F. Supp. 3d 191 (D. Mass. 2019).
In Pazol, the plaintiffs registered and paid to participate in a Tough Mudder obstacle course event scheduled for September 6, 2014, in Haverhill, Massachusetts. Days before the event, Tough Mudder moved the location. Plaintiffs were unable to attend, but Tough Mudder refused to refund their registration fees. Many registrants were apparently in the same boat and the plaintiffs commenced a class action.
The plaintiffs and Tough Mudder eventually agreed to mediate, resulting in a settlement...
