United States v. Billy J. Sparks

The district court denied the Government’s motion made under Fed.R.Civ.P. 60(b) to set aside the court’s order dismissing the Government’s case for lack of prosecution. The United States appeals. For the reasons stated below, we reverse and remand the district court’s order.

Appellee Sparks was convicted in 1973 of possessing stolen mail. The crime occurred in 1971. In 1977, shortly before the applicable 6-year statute of limitations ran, the Government brought an action against Sparks for conversion, seeking the repayment of more than $66,000. On April 16, 1979, the date set for trial, the parties reached an oral agreement to settle the case. The terms of the oral settlement included repayment of $64,000 in five years at 5 percent interest. The court entered a minute order stating that a settlement agreement was to be filed.

The Justice Department tentatively approved the settlement on the same day, and the Government shortly thereafter sent proposed settlement documents to Spark’s attorney. The parties then began to work out the details of settlement, attempting to reach agreements regarding the security to be used for Sparks’s payment of the money, and the exact time within…