Texas: Rule 11 agreement was enforceable, but fact issues of performance preclude summary judgment

Originally published by Gene Roberts.

In MKM Engineers, Inc. v. Guzder, the Fourteenth Court of Appeals held that a Rule 11 agreement entered into by the parties was enforceable, but there were issues of fact preventing summary judgment on a breach of contract claim.
The Court’s 24-page opinion outlines a complex factual and procedural history. The parties attended a mediation and settlement conferences that resulted in a Rule 11 agreement with future duties, such as a side-letter, the drafting and execution of a “final settlement agreement” with mutual releases and payment of the settlement amount.
The Court held that the Rule 11 agreement was enforceable, despite one of the party’s challenge that the agreement did not contain all of the material terms. The Court noted that Texas law allows courts to enforce “settlement agreements that contemplate additional documentation or leave open certain terms for future negotiation.” According to the Court:

The critical issue for determining enforceability when the parties agree that some term …

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