Simple Fraud Is Insufficient to Challenge Settlement

Simple fraud won’t support an independent action to have a settlement set aside, the U.S. Court of Appeals for the Sixth Circuit said Sept. 20 (Giasson Aerospace Sci. Inc. v. RCO Eng’g Inc., 2017 BL 331441, 6th Cir., No. 16-1769, 9/20/17).

A settlement agreement will be upheld unless allowing it to stand amounts to a grave miscarriage of justice, the court said in an opinion by Judge Richard A. Griffin.

Giasson Aerospace Science Inc. and RCO Engineering worked together to get a contract to make airline seats, but RCO cut Giasson out of the deal.

In Giasson’s subsequent ...