The First Circuit just delivered a stark warning about settlement remorse in employment cases
A Siemens employee settled her wage lawsuit during mediation, then refused to sign the paperwork. A federal appeals court made clear that won't fly.
Ann Marie Maccarone thought she could walk away from a settlement she agreed to in open court. The First Circuit Court of Appeals told her otherwise on January 29, delivering a decision that should get the attention of anyone handling employment disputes.
Maccarone had sued her former employer, Siemens Industry, over wage-and-hour violations under federal and Rhode Island law. After discovery and partial summary judgment, a jury trial was set for April 2024. But the parties headed to settlement talks first.
On March 6, 2024, the parties and their attorneys gathered for a court-supervised mediation. Maccarone joined by Zoom. After negotiations, they hammered out a deal. The magistrate judge carefully spelled out every term on the record, which was being recorded. Siemens would pay Maccarone a specific sum within about 30 days of signing the paperwork. There would be confidentiality provisions, non-defamation and no-rehire clauses, and a full release of all claims. The case would be dismissed with prejudice, each side covering its own costs.
Counsel for both sides confirmed the agreement on the record. Maccarone, listening in on Zoom with the ability to speak up, said nothing.
The court canceled the jury trial. Siemens drafted the...
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