Gorman

Plaintiffs in an action for breach of contract and fraud appeal from an order of dismissal following the granting of defendant’s motion to dismiss for want of prosecution pursuant to Code of Civil Procedure section 583, subdivision (b). We reverse.

Plaintiffs filed their initial complaint on May 4, 1978, seeking compensatory and exemplary damages flowing from an alleged breach of a construction contract. Plaintiffs further alleged fraud, breach of warranties, negligence and conspiracy. Defendant filed a cross-complaint.

In March 1981 the parties filed at-issue memoranda. At a trial-setting conference in May 1982 the matter was set for a mandatory settlement conference on December 7, 1982, and for trial on December 28, 1982. The mandatory settlement conference was continued to December 28th, and on that date the parties agreed to entry of judgment for plaintiffs and cross-defendants as a complete settlement of their dispute. They stipulated to the terms of the settlement on the record in open court. We include that stipulation as appendix A. Plaintiffs’ counsel was to prepare an order for the court’s signature and submit it to defendant for approval as to form.

In…