The defendant, Medcap Real Estate Holdings Inc., brought motions to dismiss or stay actions by Bennington Financial Corp. and Heffner Investments Limited.
Medcap alleged that the plaintiffs, along with other non-parties, entered into an undisclosed agreement to only settle collectively, which Medcap argued constituted an abuse of process requiring immediate disclosure.
The court found that such a verbal "settle with one, settle with all" agreement existed.
However, the court determined that this agreement was not required to be disclosed because it did not "entirely change the landscape of the litigation in a way that significantly altered the adversarial relationship among the parties or the dynamics of the litigation," as the plaintiffs were already aligned in interest through prior agreements and conduct.
Consequently, Medcap's motions were dismissed.