Proctor v. Capital One, N.A.

UNITEI) STA']`ES I)ISTRICT COURT F()R THE I)ISTRICT OF COLUMBIA Cl-IARNITA PROC'I`OR, Plaintiff, V~ Civii Action No. 17-1966 (CKK) LIBERTY MUTUAL AUTO AND HOME SERVICES, LLC, et a!., Defendants. AMENDEI) REI)ACTEI) MEMORANDUM oPINioN (Apni 3, 2018) Defendants Capital One, N.A. and Capitai One Auto Finance, lnc. (collectively, “Capital One”) seek the Court’s enforcement oi`a settlement agreement between Capitai One and Plaintiff Charnita Proctor. Ms. Proctor does not dispute that she entered into an agreement Rather, she objects to its putative scope, arguing that it pertains only to a specific auto loan frorn Capital One.1 Upon consideration of the briefing and evidence,?' the relevant legal authorities, and the record as a wliole, the Court GRANTS-IN-PART and I)ENIES-IN"I’ART Capital One’s Motion to § The Court held a hearing to confirm that this Was the only remaining dispute 2 "I`iie Court’s consideration has focused on the following briefing and the evidence contained in attachments thereto: 0 Capital One, N.A. and Capital One Auto Finance, lnc.’s Mot. to Enforce Settleznent, ECF No. 17 (“Del".’s l\/lot. to Eni`orce”); ¢ Capital One, N.A. and Capital One Auto Finance, lnc.’S Sealed l\/lem. in Supp. of Their i\/lot. to Enforce Settlement, ECF No. 18-1 (“Def.’s Me:n.”); 0 Pl.’s Opp’n to Capitai One’s l\/Iot. to Eni"orce Settlement Agreement, ECF No. 26 (“Pl.’s Opp’n”); and 0 Capital One, N.A. and Capital One Auto Finance, inc.’s Sealed Reply in Supp. of Their l\/lot. to Eni"orce Settlenient, ECF No. 27~1 (“Dei".’s Repiy”). l Enforce Settiement, ECF No. 17. Except with respect to certain adjustments to paragraphs 2, 3, 4, and 6, the settlement agreement shail be enforced as Capital One has set forth. See Confidential Settlement Agreement and Release of Claims, ECF No. 18*2, Ex. 2. lt is helpful to begin in reference to l\/Is. Proctor’s request foran evidentiary hearing on this motion. l\/ls. Proctor ciaims an entitlement to such a hearing “to determine Whether the parties entered into a binding contract.” Pl.’s Opp’n at 3 (citing, e.g., Um`fed Siafe.r v. Mahoney, 247 F.3d 279, 285 (D.C. Cir. 200})). “When there is a genuine dispute about Whether the parties have entered into a binding settlement, the district court must hold an evidentiary hearing that includes the opportunity for cross-examination.” Ma)'roney, 247 I*`.Bd at 285. However, such a hearing is not necessary if the Court is persuaded on the basis of the briefing that a settlement agreement exists [T]he existence or lack of factual disputes concerning the validity of a settlement agreement cannot, ex ante, require that the Court hold an evidentiary hearing to resolve a motion to enforce that agreement Rather, the Court must first determine vvhether, despite Whatever factual disputes may exist, the moving party has nevertheless carried the burden of proving the existence of a settlement agreement by clear and convincing evidence Sanim v. Shaheen Bus. & [nv. Grp,, Inc., 355 F. Supp. 2d 483, 494 (D.D.C. 2005). Accordingly, the Court shall proceed to consider Whether Capitai One has discharged its burden to prove a settlement agreement between Capital One and l\/ls. Proctor. 'I`he parties urge the Court to apply District of Coiumbia law for the formation of eontracts, in partieuiar, settlement agreements See Def.’s l\/iem. at 6; Pl.’s Opp’n at 1. The Court is unaware of any reason to do otherwise “ln the District of Columbia, an enforceable contract exists When there is an agreement about all material terms and an intention of the parties to be bound.” Ma/ioney, 247 F.3d at 285. “ln the context of settlement agreenients, court [sic] have found that the amount to be paid and the elaimant’s release of liability are the material terms” under D.C. law. chick.rrone v. Brink, 63 F. Supp. 3d 68, 77 (D.D.C. 2014). Capital One considers the material terms to consist of: Def.’s l\/iem. at 6. lBecause this statement of materiai terms includes the amount to be paid and the release of liability, an agreement containing these terms Would suffice under D.C. law if the parties intended to be bound by it. See Bri'nk, 63 F. Supp. 3d at 77. l\/Is. Proctor does not dispute Capital One’s characterization of the material terms, except insofar as the settlement agreement could be read to include a release of claims she may have that are unrelated to the specific auto loan presently at issue. See Pl.’s Opp’n at 2. She objects in particular to language in Paragraph 6 that Would require her, in pertinent part, to release - _ Confidential Settlement Agreement and Release of Claims, l§CF No. lS-Z, Ex. 2 il 6;, See also Pl.’s Opp’n at 2. She is especially concerned about any claims against Capital One that she may pursue- related to three charged-off credit cards. See Pl.’s Opp’n at 2. Although Capital One’s correspondence suggests that the parties’ orai agreement included _ _ ECF No. 18-2, Ex. l Proctor006; see also Coni"idential Settiement Agreement and Release of Ciaims, l;`:CF No. 18-2, Ex. 2 il 2 (_ -), Capital One confirms that the parties did not discuss anything about charged~off credit cards, see Def.‘s Reply at 4-5. In turn, the agreement drafted by Capital One expressly identifies only the car loan as a claim at issue, for purposes of this litigation and the settlement agreement See Cont`idential Settlement Agreement and Relcase of Claims, ECF No. 18~2, Ex. 2 (i'ecitals). Accordingly, the Court construes the parties as agreeing only to release claims that could arise related to this auto loan. 'l`he parties concede their intention to enter into a settlement Det`.’s Mein. at 6; Pi.’s Opp’n at l. l\doreover, Capital Oiie’s execution of the Confidential Settlement Agreement and Release of Claiins, ECF No. 18~2, Ex. 3, demonstrates Capital One’s intention to be bound by this particular document, which it represents as containing the material terms to which the parties agreed in their discussions orally and by email. Def.’s Mern. at 6»8. Only in two respects has l\/ls. Proctor disputed that this document reflects the parties’ agreement 'l`he first is her prior objectione»»not raised again in her Opposition--to Paragraphs 3 and 4, which would require - _. See Def.’s l\/lem. at 8~9. Notwithstanding Capital One’s argument that this is a standard provision, Capital One concedes that the parties did not discuss it orally, and argues that it accordingly may be considered immateriall fci at 8 (citing Bri'nk, 63 F. Supp. 3d at 77). Capital One also agreed, long before the instant motion, to drop - -. See 1a a 9; D@@i. Oi’ionaihan s. nubbard, ESq., ncr NO. is-z, EX. A ii 1a rite other issue l\/Is. Proctor raised more recently is the scope of the agreement, which the Court has addressed above. There is no evidence in the record to suggest that the parties intended their agreement to apply to anything other than the specific car loan described in the settlement agreement Because l\/is. Proctor has not at any time objected to any other portion of the settlement agreement prepared by Capital One, which contains the material terms to which they agreed, the Court lfinds that the parties intended to be bound by it. >|<>l<>l< 'l`he Court finds that Ms. Proctor and Capital One agreed to a settlement agreement that does not include _ and contains a release only as to the car loan expressly at issue in this litigation and in the settlement agreement The settlement agreement shall adopt language in Paragraphs 2 and 6 that more clearly indicates the limited scope of the agreement 'l`he settlement agreement also shall be revised in Paragraphs 3 and 4 to omit _, as Ms. Proctor and Capital One agreed Pursuant to the terms of the parties’ settlement agreement, l\/ls. Proctor shall file a Notice cf Dismissal of Capital One only in accordance with Paragraph 2, as amended An appropriate Order accompanies this Memorandum ()pinion. Dated: April 3, 2018 /s/ COLLEEN KOLLAR-KOTELLY United States District Judge