Shanghai Shenda II LLC v. Feinstein

Background

Shanghai Shenda II LLC sued Steven Feinstein, alleging that he breached an employment agreement and failed to repay loan amounts advanced to him. On March 12, 2021, the parties entered into a written settlement agreement. Feinstein agreed to pay $162,500 plus interest at 2.5% per year under a fixed payment schedule.

The agreement defined an event of default to include failing to make a required payment within 10 days after receiving a notice of default. If a default occurred, the agreement made the entire debt—$237,500—immediately due and payable, with credit for payments already made. It also allowed Shanghai Shenda II to recover the costs of enforcing the judgment, including reasonable attorney’s fees.

On March 19, 2021, the court approved the parties’ joint request to dismiss the case while retaining jurisdiction to enforce the settlement agreement.

Default and Enforcement Motion

Shanghai Shenda II represented that Feinstein made the first six payments but failed to make timely payments beginning September 1, 2022. The opinion states that Feinstein’s last payment was made on June 13, 2022, and that he had paid $37,500. Shanghai Shenda II sent a notice of default to Feinstein’s attorney by email on September 9, 2022. The company represented that Feinstein had not cured the default. Feinstein did not respond to the motion.

The court explained that enforcing a settlement agreement is treated as enforcing a contract. It found that the agreement was valid and enforceable and that Feinstein had defaulted under its terms.

Ruling

The court granted Shanghai Shenda II LLC’s motion to enforce the settlement agreement. It directed the Clerk of Court to enter judgment for $200,000, plus interest on that amount at 2.5% per year from March 12, 2021, and $9,457 in attorney’s fees. The court found the requested attorney’s fees reasonable. Judge Ronnie Abrams also directed the Clerk to terminate the pending motion.