New Settlement Case: 7-1-25

I help California lawyers get excellent results several ways:

• I help attorneys settle cases as a mediator, decide cases as an arbitrator, and decide issues as a referee with ADR Services, Inc. 
• I help California attorneys save time, know more, and win more by making it easy to know the new case law in their practice areas with my online publication California Case Summaries™.
• I help attorneys become excellent civil trial lawyers with my Trial Alchemy™ podcast where I interview outstanding plaintiff and defense civil trial lawyers and civil trial judges who are members of the American Board of Trial Advocates. 

New CA Settlement Case

Can a derivative action be settled without
express trial court approval?

Last month, the California Court of Appeal decided this important issue:

Norman v. Strateman et al. (2025) __ Cal.App.5th __, 2025 WL 1718303: The Court of Appeal reversed the trial court’s order granting defendants’ motion to enforce a settlement agreement and its order denying plaintiff’s motion to set aside a settlement agreement. After defendants closed Intersango, a start-up cryptocurrency exchange, plaintiff filed a derivative action alleging numerous causes of action against defendants. Defendants later filed a derivative cross-complaint against plaintiff. Before trial the parties entered into a settlement agreement and put it on the record before a settlement judge, not the trial judge. Neither the settlement judge nor the trial judge expressly approved the settlement of the case. When the parties later filed their motions to set aside and enforce the settlement, the trial judge granted the motion to enforce the agreement. The trial court reasoned that because all three of the shareholders were involved in the settlement and derivative lawsuits were designed to protect shareholders, the settlement agreement did protect the shareholders. The Court of Appeal disagreed. In derivative actions trial court approval of the settlement is required, and the trial court must evaluate factors similar to those considered in class action settlements. Because no evidence was presented that the settlement judge or the trial judge undertook a review, the trial court’s order was reversed and the case was remanded. (C.A. 1st, June 20, 2025.)

Mediation, Arbitration and Referee Services

I help attorneys throughout California settle cases as a mediator, decide cases as an arbitrator and decide issues as a referee at ADR Services, Inc. I handle business, commercial, employment, insurance, probate, real property, and tort cases. As a neutral I use my extensive experience as a California civil trial lawyer since 1980 who has represented both plaintiffs and defendants in these areas. I've been a member of the American Board of Trial Advocates (ABOTA) since 1995. I've tried over 100 civil cases including numerous civil jury trials. I'm a past president of the San Diego County Bar Association, and a past president of the San Diego Chapter of ABOTA. To schedule a new matter, please contact one of my case managers at ADR services, Inc.:
Haward Cho, [email protected], (213) 683-1600, or
Rachael Boughan, [email protected], (619) 233-1323

When you conduct a half-day or full-day private mediation or arbitration with me you'll get a free 5-month subscription (a $1,000 value) to my invaluable online publication California Case Summaries™.  

California Case Summaries™

Best regards,
Monty A. McIntyre, Esq.
Mediator, Arbitrator & Referee
Podcaster: Trial Alchemy™ Learn from Civil Jury Trial Experts.
Publisher: California Case Summaries™ Save Time. Know More. Win More.
ABOTA Member Since 1995
Past President: San Diego County Bar Assn.
Past President: SD ABOTA Chapter
Phone: (619) 990-4312. Email: [email protected]