Arnold v. Neal

738 S.E.2d 707, 320 Ga. App. 289, 2013 Fulton County D. Rep. 448, 2013 WL 646414, 2013 Ga. App. LEXIS 99
CourtCourt of Appeals of Georgia
DecidedFebruary 22, 2013
DocketA12A2464
StatusPublished
Cited by1 cases

This text of 738 S.E.2d 707 (Arnold v. Neal) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arnold v. Neal, 738 S.E.2d 707, 320 Ga. App. 289, 2013 Fulton County D. Rep. 448, 2013 WL 646414, 2013 Ga. App. LEXIS 99 (Ga. Ct. App. 2013).

Opinion

Dillard, Judge.

In this personal-injury action arising from a motor-vehicle accident, Donna Arnold appeals the trial court’s orders granting Danny Neal’s motion to enforce settlement and his motion for summary judgment. Specifically, Arnold contends that Neal’s insurance company’s tender was not identical to the terms of her settlement offer and, therefore, did not constitute an acceptance. For the reasons set forth infra, we conclude that the parties entered into an enforceable settlement agreement and, thus, we affirm the trial court’s orders.

[290]*290The record in this case shows that on December 20,2010, Arnold and Neal were involved in a motor-vehicle accident, in which Neal’s vehicle crossed the road’s double yellow line and collided head-on with Arnold’s vehicle. As a result, Arnold suffered injuries so severe that she incurred over $700,000 in medical expenses. Neal’s vehicle was covered by an insurance policy issued by Allstate Fire & Casualty Insurance Company (“Allstate”), and the applicable policy limit was $100,000 for bodily-injury claims.

On February 14, 2011, Arnold’s attorney sent a letter to an Allstate claims adjuster entitled “Policy Limit Demand In Exchange of a Limited Release.” The letter, in relevant part, noted:

It is my understanding that your insured’s policy limits are only $100,000. If I am incorrect, please contact me immediately. However, relying on this information, Ms. Arnold has authorized me to demand your insured’s policy limits of $100,000. We will only agree to this pursuant [sic] a limited release and you must not deny any liability on behalf of Allstate or your insured in said release. Additionally, the release must not contain any indemnification language as we are unwilling to provide indemnification, however, [Ms. Arnold] is on Medicaid and we will take care of any Medicaid lien as a result of this wreck. Finally, afterwards, we ask to speak to your insured for the sole purpose of seeking any other insurance policies he may hold that would potentially cover this incident.
We must receive the policy limits no later than February 28, 2011 [,] by 5:00 p.m. at my office (fourteen days). Again the limited release must not contain any indemnification language other than for Medicaid Liens. All communication must be in writing after receipt of this demand.

On February 18, 2011, the Allstate claims adjuster responded to Arnold’s attorney’s demand letter with correspondence noting that “Allstate is extending an offer of policy limits of $100,000 as full and final settlement of the bodily injury claim.” In addition, the claims adjuster’s letter requested that Arnold’s attorney contact her to discuss the manner in which to issue the check. And on February 22, 2011, Arnold’s attorney replied, informing the claims adjuster as to how to issue the check and adding “Please note the conditions that must be met that were made in our initial demand. These conditions must be met.”

[291]*291On February 24, 2011, Allstate’s counsel, who had been retained the day before for purposes of preparing the limited release, sent a letter to Arnold’s attorney, which provided, in relevant part, as follows:

I understand that your client has accepted Allstate’s $100,000.00 policy limits, pursuant to a Limited Liability Release, to settle and compromise the claims of your client arising out of the December 20,2010 motor vehicle accident. In that regard, please find enclosed our proposed[ ] form Limited Liability Release and Lien Affidavit for your review. As you requested I have taken out all indemnification language, but have indicated that Medicaid liens will be satisfied, negotiated and/or resolved out of the settlement proceeds. If you are not agreeable to my proposed language I am sure we can agree to language agreeable to all parties. I have also taken out the language concerning denial of liability as you requested.

The letter included a limited-liability release and lien affidavit that had been drafted as characterized by Allstate’s counsel. And the following day, Arnold’s attorney received the $100,000 check from Allstate, which had been hand-written by the claims adjuster and included the following notation: “Full + final settlement of any and all claims for bodily injury arising from loss 12/20/10.”

Arnold’s attorney did not immediately respond after receiving the settlement check. Instead, on March 4, 2011, Arnold filed a personal-injury lawsuit against Neal and several John Doe defendants for injuries and other damages that she suffered as a result of the motor-vehicle accident. Subsequently, on March 11,2011, Arnold’s attorney sent a letter to Allstate’s counsel, noting that by writing “Full and Final Settlement of any and all claims for bodily injury arising from her loss on 12/20/10,” Allstate attempted to preclude Arnold from pursuing “any other remedies that the law would allow,” and, therefore, rejected Arnold’s settlement offer. Allstate’s counsel responded with correspondence a few days later, which noted the following:

Allstate certainly does not contend, and has never contended, that the settlement in this case was for anything other than a limited release as is clear from my February 24, 2011 letter to you. Allstate further denies that the language on the settlement check contains any kind of counter offer. This case has been settled pursuant to a limited release and the language on the check does not affect that.

[292]*292Allstate’s counsel further added that Arnold could cash the check as written with full knowledge that the settlement was pursuant to the limited release, but that in light of Arnold’s attorney’s concerns, a second check without the objectionable language would be immediately issued. Nevertheless, Arnold’s attorney responded the same day via e-mail, maintaining that “[h]ad Ms. Arnold cashed the check, she would have been prohibited to pursue any other claims for her injuries, which is the only reason to have a limited release.”

Thereafter, Neal filed an answer to Arnold’s complaint. And on June 8, 2011, Neal filed a motion to enforce settlement, arguing that Allstate settled with Arnold on Neal’s behalf by its letter of February 24, 2011, which accepted all the terms of Arnold’s offer and enclosed the limited release. On July 28, 2011, the trial court granted Neal’s motion to enforce settlement, finding that Allstate counsel’s February 24, 2011 letter and the accompanying limited release constituted an acceptance of Arnold’s offer. But because Arnold had claims remaining against the John Doe defendants, the trial court did not immediately dismiss the case. Several months later, however, Neal filed a motion for summary judgment, arguing that the settlement extinguished all of Arnold’s claims against him. The trial court granted Neal’s motion, and this appeal follows.

1. Arnold contends that the trial court erred in granting Neal’s motion to enforce settlement, arguing that Allstate’s tender was not identical to the terms of her settlement offer and, therefore, did not constitute an acceptance. We disagree.

At the outset, we note that in reviewing the trial court’s order on both a motion to enforce a settlement agreement and a motion for summary judgment, “we apply a de novo standard of review and, thus, view the evidence in a light most favorable to the nonmoving party.”1

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Bluebook (online)
738 S.E.2d 707, 320 Ga. App. 289, 2013 Fulton County D. Rep. 448, 2013 WL 646414, 2013 Ga. App. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arnold-v-neal-gactapp-2013.