How many times have you entered into a stipulation and the Court simply approves the stipulation? So what does that actually mean? The Eighth Circuit BAP was forced to analyze this situation in which a party failed to comply with the stipulation. The Court order simply stated that the stipulation is approved except for two paragraphs. The Debtors complied but the Bank did not (failed to timely file a release of its financing statement).
The Court stated that the stipulation imposed duties but he order did not. The text of the order did not incorporate the terms of the stipulation nor that the parties were required to abide by the terms of the stipulation. (In my opinion, you now had a simple breach of contract issue).
The Court further indicated that this factual situation was different than others in which Court's have enforced a stipulation. In those situations, there was clear and unambiguous language that the terms of the stipulation are ordered by the court and enforceable by contempt.
The bottom line is if you enter into a stipulation and want to enforce it as a court order, incorporate it by reference and state that the stipulation is part of the order and enforceable by contempt.
In re Fischer - 8th Cir. BAP
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