Most people think settlement ends a dispute. But a settlement agreement is a legally binding contract, and disputes regarding compliance can arise. A recent decision from the Washington Court of Appeals, Cai v. Wen, illustrates how a settlement compliance dispute unfolds.
Following an investment dispute, Daoying Cai and Boheng Wen entered into a settlement agreement in which Wen agreed to pay $650,000 to Cai in June 2022. Because Wen did not have the funds, his children agreed to sell their homes to fund the payment. However, post-settlement enforcement action went on for years. When Wen failed to provide a deed of trust against one of the homes as promised, Cai moved the court to enforce the settlement agreement. The court granted the motion. When Wen’s daughter refused to provide requested assurances to the title company handling the sale of her home, the court granted Cai’s motion and declared Cai’s legal authority to sell the property. When the sale stalled because the title
