Cunningham v. Zurich American Insurance Co.

352 S.W.3d 519, 2011 Tex. App. LEXIS 7567, 2011 WL 4345214
CourtCourt of Appeals of Texas
DecidedSeptember 15, 2011
Docket02-09-00177-CV
StatusPublished
Cited by34 cases

This text of 352 S.W.3d 519 (Cunningham v. Zurich American Insurance Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cunningham v. Zurich American Insurance Co., 352 S.W.3d 519, 2011 Tex. App. LEXIS 7567, 2011 WL 4345214 (Tex. Ct. App. 2011).

Opinion

OPINION

LEE ANN DAUPHINOT, Justice.

This appeal arises from a breach of contract claim against the insurance carriers *522 for two defendants in a medical malpractice case. Appellant Robert Gene Cunningham, Individually and as Representative of the Estate of Patricia Maudine Cunningham, Deceased, (Cunningham) appeals from the trial court’s order denying his motion for summary judgment and granting summary judgment for Appellees Zurich American Insurance Company, its affiliated company Assurance Company of America (collectively Zurich), and Texas Medical Liability Insurance Underwriting Association (also referred to as the Joint Underwriting Association) (JUA). Because we hold the trial court did not err by granting summary judgment for Zurich and JUA, we affirm.

I. Facts and Procedural History

In a suit brought by Cunningham against Dr. Noble Ezukanma, Dr. Ladi Haroona, their employer HealthFirst Medical Group, P.A., and others for medical malpractice, the trial court rendered judgment against Ezukanma and HealthFirst, jointly and severally, in the amount of $1,041,944.80. The trial court rendered a take-nothing judgment on Cunningham’s claim against Haroona. Ezukanma and HealthFirst appealed the judgment against them, and Cunningham appealed the take-nothing judgment for Haroona. JUA, the malpractice insurance carrier for Ezukanma, deposited policy proceeds in the amount of $236,115.66 into the registry of the court on Ezukanma’s behalf in lieu of a supersedeas bond.

The trial court ordered the parties to attend post-judgment mediation, and before, during, and after mediation and while the case was pending on appeal, Cunningham, Ezukanma, and HealthFirst engaged in negotiations for a possible settlement. JUA and Zurich, the insurance carrier for HealthFirst, were also involved in the settlement negotiations. Zurich was represented by Laura Grabouski. Stephen Johnson represented Haroona, Mike Shee-han represented HealthFirst, Kevin Carey represented Ezukanma, and John Wilson represented JUA. The parties would later dispute whether Carey also represented JUA.

Cunningham’s attorney, Katherine Youngblood, made a “take-it-or-leave-it” demand to Ezukanma and HealthFirst. The demand, which Youngblood said would expire at noon on May 23, 2008, was for $650,000 from Zurich plus the funds that JUA had deposited into the trial court’s registry. In exchange, Cunningham would sign a release of at least some of his claims; the parties later disagreed about whether they had intended for Haroona to be included in the release.

On the date of the deadline, Grabouski sent Youngblood an email at 10:29 a.m. that stated:

This confirms that you have made a “take or leave it” demand to HealthFirst and [Ezukanma] and their carriers ... for payment of $650,000 plus the amount ... currently in the court’s registry, in exchange for a complete release of those parties and dismissal of all proceedings against such parties; and further that this demand expires at noon today, Friday, May 23, 2008. Based on that understanding, Zurich, on behalf of HealthFirst and [Ezukanma], agrees to pay [Cunningham] $650,000, provided that such amount is combined with payment of [Ezukanma’s] JUA policy (and upon any necessary consents to same), in exchange for [Cunningham’s] complete release of the above parties and dismissal of the proceedings. Zurich’s agreement to do so is further conditioned on execution of a satisfactory Rule 11 agreement by counsel ... and a subsequent execution of a more formal agreement and release by the parties.

*523 In the days following Grabouski’s email, Youngblood, Grabouski, and Carey exchanged a series of emails and letters that showed a disagreement over whether Ha-roona was intended to be included in the release. On May 27, 2008, Grabouski sent Youngblood a proposed Rule 11 agreement that, in addition to the terms mentioned in her email, included the release of Cunningham’s claims against Haroona. Young-blood struck out the portion regarding Ha-roona, signed the agreement, and returned it. She later prepared an “Agreement for Release of Judgment” that Zurich and JUA declined to sign. After Youngblood and Grabouski exchanged emails and letters disputing whether Haroona was to be included and whether they had a binding agreement, Carey notified Youngblood that he was “convinced that there has not been a ‘meeting of the minds’ relevant to any settlement” in the case and that he would not sign any agreed order abating or dismissing the appeal until the parties had “a valid, fully executed [R]ule 11 agreement on file with the [trial court] resolving all claims with indemnification to the benefit of [Ezukanma].”

Cunningham filed suit against Zurich and JUA for breach of contract in Dallas County. In October 2008, on Zurich and JUA’s motion, the Dallas trial court transferred that suit to Tarrant County under civil practice and remedies code section 15.002(b). 1 This breach of contract action is the underlying suit in the appeal now before us.

While the breach of contract action was pending, Cunningham, Ezukanma, and HealthFirst entered into a confidential settlement agreement regarding the judgment in the malpractice suit. Accordingly, in December 2008, Ezukanma, Health-First, and Cunningham filed an agreed motion for partial nonsuit in the breach of contract suit, seeking dismissal of all claims “seeking enforcement and collection of the [judgment which have been or which could have been asserted by [Cunningham] against any other party to this suit,” including a claim seeking the full amount of the judgment from the malpractice action. The motion expressly states that the parties did not address Cunningham’s breach of contract claim based on the alleged settlement agreement. The trial court signed an order of partial non-suit in accordance with the motion. Cunningham, Ezukanma, and HealthFirst also filed in this court an agreed motion to dismiss Ezukanma’s and HealthFirst’s appeals in the malpractice suit, which this court granted.

In the breach of contract action, Zurich, JUA, and Cunningham all filed motions for summary judgment. Zurich’s motion for summary judgment asserted, among other grounds, that Grabouski’s May 23, 2008 email was a mere offer that was withdrawn prior to acceptance; that the email did not meet the requirements of Rule 11 of the rules of civil procedure and was therefore not an enforceable settlement agreement; and that the email was not signed, prohibiting enforcement under Rule 11.

JUA’s motion for summary judgment adopted by reference Zurich’s motion and also asserted that JUA never entered into a valid contract with Cunningham because the email from Grabouski did not bind JUA; that there was no offer, acceptance, or meeting of the minds between Cunningham and JUA; and that the email did not satisfy Rule 11.

Cunningham argued in his motion that the email constituted an acceptance of the material terms necessary to constitute a valid contract. The trial court denied Cunningham’s motion and granted Zurich’s and JUA’s motions. Cunningham now appeals.

*524 II. Standard of Review for Summary Judgment

We review a summary judgment de novo.

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Bluebook (online)
352 S.W.3d 519, 2011 Tex. App. LEXIS 7567, 2011 WL 4345214, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cunningham-v-zurich-american-insurance-co-texapp-2011.