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Court of Appeals — Settlement Agreement: IDT Corp v. Tyco Group, SARL

New York State Court of Appeals 

Settlement Agreement

Agreement to Negotiate — Good Faith

IDT Corp v. Tyco Group, SARL
No. 96
Judge Smith

Background: The plaintiff claimed that the defendant breached its obligations under a 2000 settlement agreement to negotiate additional agreements in good faith. The parties have been litigating and negotiating the development and use of a telecommunications system.

Ruling: The Court of Appeals held that parties who agree to negotiate are not bound to negotiate forever. The parties have reached an impasse and the plaintiff has no valid cause of action.

Thomas E. L. Dewy for the appellants; Hillel I. Parness for the respondents