Ashley Claxton v. Dale Adams

Court of Appeals of Georgia·Decided September 21, 2020·No. A20A0780·Published

Opinion

FOURTH DIVISION

DILLARD, P. J.,

RICKMAN and BROWN, JJ.

NOTICE: Motions for reconsideration must be physically received in our clerk’s office within ten days of the date of decision to be deemed timely filed.

https://www.gaappeals.us/rules

DEADLINES ARE NO LONGER TOLLED IN THIS COURT. ALL FILINGS MUST BE SUBMITTED WITHIN THE TIMES SET BY OUR COURT RULES.

September 21, 2020

In the Court of Appeals of Georgia A20A0780. CLAXTON v. ADAMS.

BROWN, Judge.

In this interlocutory appeal, Ashley Claxton appeals from the trial court’s order granting Dale Adams’ motion for reconsideration of its previous order enforcing a settlement between Claxton and Adams. Claxton asserts that the trial court erred in granting the motion for reconsideration and in failing to enforce the settlement because: (1) its previous order was final and the motion for reconsideration was untimely; (2) Adams waived arguments that were asserted in his motion for reconsideration for the first time; (3) Adams was estopped from challenging the form of the release because he attempted to cash the settlement check; and (4) the limited liability release did not impermissibly release property damage claims. For the reasons explained below, we affirm.

The record shows that on May 24, 2016, Claxton struck Adams’ vehicle while Adams was working in a construction zone; Claxton was charged with serious injury by vehicle, reckless driving, and failure to maintain a lane. In September 2016, Claxton’s insurer, Nationwide Affinity Insurance Company of North America (“Nationwide”) offered to pay its policy limits of $50,000 to settle Adams’ claims in exchange for a general release. On November 2, 2016, Adams filed a complaint against Claxton, asserting that he was permanently injured as a result of the accident and had incurred medical expenses in excess of $585,000. A copy of his complaint was also served upon The Hanover Insurance Company (“Hanover”) and Progressive Mountain Insurance Company (“Progressive”), in their capacity as uninsured motorist carriers.

In late November 2016, Nationwide received a time-limited demand letter from Adams’ counsel, the details of which will be explained in our analysis of Claxton’s claim that the trial court erred by failing to enforce a settlement. On December 19, 2016, counsel for Nationwide hand-delivered a check and other documents aimed at accepting the time-limited settlement demand. On December 28, 2016, Adams’ counsel notified Nationwide’s counsel that it was rejecting what he characterized as Nationwide’s counteroffer. One of the stated reasons was that

Mr. Adams’ offer of compromise could not have been more clear in its requirement that Nationwide deliver “a valid CHECK (not draft).” When the $50,000 instrument was presented to JPMorgan Chase Bank, N.A. (“Chase”) for payment, Chase stated that it could not provide cash in exchange for the instrument. Instead, Chase stated that the instrument had to be deposited into an account at Chase or another bank. Chase also refused to exchange the instrument for a check drawn directly against Chase’s funds. Upon further probing, Chase disclosed that the account had a limit set by Nationwide that prevented cashing any instrument in an amount higher than the pre-set limit. Since $50,000 was higher than the limit that was pre-set by Nationwide, Chase stated that it could not cash the instrument. Since the instrument exceeded the pre-set limit, it would have to be presented to Nationwide for approval, a process that Chase stated could take as long as nine (9) business days. Furthermore, Chase could not confirm that the instrument was, in fact, a check rather than a draft, but, since Chase would not cash the instrument, it was clear that the instrument was not a valid check.

...

Since this firm could not cash the instrument or exchange it for a guaranteed check drawn against Chase’s own funds, this firm could not immediately distribute funds to Mr. Adams. Mr. Adams was not willing to wait more than nine (9) business days for payment when he was accepting mere pennies compared to the true value of his case, and, rather than wait, he is accepting alternative arrangements to handle his financial situation. Nationwide had a full and fair opportunity to resolve

this case, and Nationwide squandered that opportunity by intentionally sending an instrument drawn against a restricted account.

The letter also rejected the “counteroffer” because “Nationwide also attempted to impose additional terms that would have invalidated part of the requirements of Mr. Adams’ offer of compromise.” It stated that the release provided by Nationwide was “under seal” and would have created a presumption of sufficiency of the consideration even though the $50,000 instrument could not be exchanged for cash upon demand.

Claxton filed a motion to enforce the settlement, and on February 27, 2018, the trial court granted the motion. Adams obtained a certificate of immediate review from the trial court, and this Court denied Adams’ application for an interlocutory appeal on April 18, 2018. On December 12, 2018, Adams filed a motion asking the trial court to reconsider its decision to enforce the settlement, or in the alternative, to enter a final judgment so that he could file an appeal from the order enforcing the settlement. On June 5, 2019, the trial court granted Adams’ motion for reconsideration because the release prepared by Nationwide constituted a counteroffer as it sought to release “‘any and all claims’ rather than just personal

injury claims.” This Court subsequently granted Claxton’s application for interlocutory appeal.

1. Claxton contends that the trial court’s initial order granting her motion to enforce the settlement became final when the last remaining co-defendant was dismissed from the case. According to Claxton, this rendered Adams’ motion for reconsideration, filed more than 30 days later, untimely. We disagree.

Over a decade ago, the Supreme Court of Georgia held “[i]t is clear that, notwithstanding the trial court’s grant of a motion to enforce a settlement, a case is not at an end until such time as the agreement has ‘been made the judgment of the court, thereby terminating the litigation.’ [Cit.]” Underwood v. Underwood, 282 Ga. 643, 644 (1) (651 SE2d 736) (2007). Accordingly, “the 30-day period for filing a notice of appeal begins to run only when the trial court explicitly enters final judgment, rather than when the trial court grants the motion to enforce the settlement agreement.” Torres v. Elkin, 317 Ga. App. 135, 139 (1) (730 SE2d 518) (2012). In this case, the trial court’s February 27, 2018 order granting Claxton’s motion to enforce the settlement did nothing more than grant a motion in the pending litigation; it therefore cannot be considered a final judgment. See Thomas v. Sheppard, 349 Ga. App. 871, 872 (827 SE2d 60) (2019). “[T]he rule against amending or revoking a

judgment after the expiration of the term in which it was entered has no application to interlocutory rulings so long as the case continues — from term to term, until final judgment.” Union Circulation Co. v. Trust Co. Bank, 143 Ga. App. 715, 718 (1) (240 SE2d 100) (1977), rev’d on other grounds, Trust Co. Bank v. Union Circulation Co., 241 Ga. 343, 345 (245 SE2d 297) (1978) (reversing division 2), vacated in part, Union Circulation Co. v. Trust Co. Bank, 146 Ga. App. 612 (247 SE2d 197) (1978) (reaffirming division 1 and vacating division 2 of original opinion). In civil cases, an interlocutory ruling does not pass from the control of the court at the end of the term if the cause remains pending.” (Citation and punctuation omitted.) Moon v. State, 287 Ga. 304 (696 SE2d 55) (2010).

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