Edith HARROP and Alice Lewis, Plaintiffs-Appellants, v. WESTERN AIRLINES, INC., Defendant-Appellee

Edith Harrop and Alice Lewis brought an action against Western Airlines under the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e et seq. (1970 & Supp. V 1975). After numerous continuances, the attorneys for the parties informed the district court that the case had been settled and that the only remaining task was to draft settlement papers. The trial court advised counsel that it would enter an order dismissing the action, with the condition that the order could be vacated within sixty days if the terms of the settlement could not be effected. The order dismissing the action with prejudice was entered the following day.

The plaintiffs, however, apparently declined to execute the formal settlement documents presented by their attorney. Three months after entry of the order of dismissal, the plaintiffs moved to substitute attorneys. The court denied the motion on the ground that the action had earlier been dismissed. Thereafter, exactly one year after the order of dismissal had been entered, the plaintiffs filed a motion under Fed.R. Civ.P. 60(b) seeking to set aside the order on the ground that the plaintiffs had not agreed to the settlement and had not authorized their attorney to…