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by Shannon O'Malley

Picture this: an insurer and its insured are engaged in a dispute concerning a property insurance claim. They engage in litigation and the discovery process, and eventually go to mediation. At the mediation, the parties seem to reach an agreement, which culminates in a signed Mediation Settlement Agreement. Everyone sighs a breath of relief – the dispute is over, right? In Harris v. Meridian Security Ins. Co., No. 4:24-CV-387, 2025 WL 3543606 (5th Cir. Dec. 10, 2025), the answer was not the expected “yes,” but rather – “Not yet!”

In Harris, the parties disputed coverage for property damage arising from the 2021 Winter Storm. The parties reached an agreement to settle at mediation, but when the more fulsome confidential settlement agreement was sent to the plaintiff, he refused to sign. Plaintiff argued his counsel did not have authority to settle. When the insurer filed a motion to enforce settlement, though, the district court agreed. The plaintiff appealed to the 5th Circuit.

The plaintiff, appearing pro se, raised three arguments: (1) the settlement was procured through fraud, duress, elder abuse, coercion, and material misrepresentation by his former counsel; (2) the settlement agreement was voidable due to the attorneys’ breach of fiduciary duty; and (3) the district court’s enforcement violated the plaintiff’s due process rights.

The 5th Circuit summarily rejected the plaintiff’s arguments. The Court determined arguments (1) and (2) were based on his own counsel’s purported coercive conduct. But a contract may only be invalidated when the coercion is by the opposing party to an agreement, not the claimant’s attorney.

As to the third argument, the Court disregarded that as well. The Court found it was not raised with the district court and, again, the allegations of misconduct were levied against his own counsel, not the insurer’s counsel. For those reasons, the Court affirmed the lower court’s order enforcing the settlement.

This kind of dispute occurs more often than you’d think, especially when an insured/plaintiff is unsophisticated. To avoid these disputes down the road, make sure any agreement is followed up in writing, and be sure to cc the insured on that follow-up. If there is a formal mediation, be sure the insured is present, and the mediator gets buy-in and approval from the insured specifically. If the mediation is virtual or the insured is not present, before the mediation is finalized, again be sure the insured talks to the mediator and agrees with the settlement. These little assurances will avoid ongoing litigation and challenges when the dispute should be resolved.