Jackson v. Con-Way Transportation Services, Inc.

222 F. App'x 887
CourtCourt of Appeals for the Eleventh Circuit
DecidedMarch 15, 2007
Docket06-14417
StatusUnpublished
Cited by1 cases

This text of 222 F. App'x 887 (Jackson v. Con-Way Transportation Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jackson v. Con-Way Transportation Services, Inc., 222 F. App'x 887 (11th Cir. 2007).

Opinion

PER CURIAM:

Baron Jackson and Michelle Jackson appeal the district court’s order denying their motion for reconsideration under Federal Rule of Civil Procedure 60(b), in which they challenge the denial of their motion to reinstate their underlying diversity action. We AFFIRM.

I. BACKGROUND

The Jacksons filed a complaint against defendant Con-Way Southern Express and defendant-appellee Fikes Truck Line, Inc. for injuries suffered in an vehicular collision. They alleged that their automobile was involved in a collision caused by the defendants’ negligent operation of two tractor trailers. The Jacksons sought compensatory and punitive damages. Both named defendants filed a notice of removal to federal court which removed this case to the Southern District of Alabama based on diversity under 28 U.S.C. § 1332.

Subsequently, the Jacksons settled their case with Con-Way Transportation Services, Inc., and the district judge dismissed the complaint against Con-Way with prejudice. The remaining defendant, Fikes, filed a notice of settlement to notify the court that a confidential settlement agreement had been negotiated. The district judge entered an order dismissing the case with prejudice, but the order also provided for “the right of any party to reinstate the action within thirty (30) days of the date of this order should the settlement agreement not be consummated.” Doc. 24 at 2. Within the thirty days, the Jacksons’ attorney and the attorney for Fikes filed a Joint Stipulation for Dismissal for the dismissal with prejudice of all claims against Fikes.

The Jacksons, proceeding pro se, filed a motion for reinstatement and sought to reinstate their case against Fikes because the Jacksons rejected the settlement offer and did not consummate a settlement. Fikes filed an objection and argued that the Jacksons executed a general release and settlement agreement that provided for the release of “all claims arising out of the [collision at issue].” Doc. 27, Ex. A at 1 (General Release and Confidential Settlement Agreement, May 30, 2006). Additionally, the release provided that the Jacksons “acknowledge that they have read and understand this Release and Confidential Settlement Agreement and execute it freely with the express knowledge and consent of counsel for the undersigned.” Id. at 3.

Fikes further argued that the Jacksons endorsed the settlement check, which read, “IN FULL PAYMENT OF ANY AND ALL CLAIMS.” Doe. 27 at 2. The settle *889 ment check was attached to a piece of paper that read, “WHEN YOU SIGN (ENDORSE) THE ATTACHED SETTLEMENT CHECK, YOU HAVE ACCEPTED PAYMENT IN FULL FOR ANY AND ALL CLAIMS. ACCEPTANCE OF THIS PAYMENT SHALL OPERATE AS A RELEASE OF ALL LIABILITY FOR ALL DAMAGES ARISING OUT OF THE ACCIDENT OF 06/30/03.” Id.

The Jacksons’ former attorney filed a response to the plaintiffs’ motion to reinstate their case, wherein he states that, on May 4, 2006, the Jacksons had authorized him to settle their claims against Fikes for $25,000, that he had received a settlement check for $25,000 on May 22, 2006, and that he had deposited the check into his trust account that day. Filed with the response was a copy of the $25,000 settlement check. On May 30, 2006, the Jack-sons signed the settlement agreement and received a check from their attorney’s trust account for their proceeds of the settlement. The Jacksons’ former attorney also filed the signed copy of the settlement statement, a copy of the check issued from his trust account with his response, a letter to the Jacksons regarding the disbursement of the settlement proceeds, a disbursement summary sheet signed by the Jacksons that itemized the disbursement of the proceeds, and a copy of a letter sent to the Jacksons in which their former attorney verified the amount of the medical lien.

The settlement agreement provided that, in exchange for $25,000, the Jacksons agreed to release Fikes and Fikes’s insurer from claims arising out of the underlying collision. The settlement agreement also states, “the settlement amount shall be kept confidential and shall not be disclosed, made public, disseminated, released, or otherwise referenced, alluded to, or suggested to any person in any manner whatsoever.” Doc. 27, Ex. A at 2. Additionally, the settlement agreement prohibited the disclosure “of the settlement or the demands and offers involved in negotiations and discussions leading up to this settlement.” Id. The settlement agreement further prohibited any “statement or implication that the settlement is greater or lesser than any specified amount, or any other direct or indirect quantification of the settlement amount.” Id.

The Jacksons’ former attorney stated that he was notified of two contracts that the Jacksons had signed on July 8, 2003, with a healthcare provider, which created a lien in the amount of $5,585.09 against any settlement proceeds. He submitted copies of these contracts with his response. In addition to creating a lien, the contracts state, “I, further authorize my attorney ... to disclose ... the settlement status and amount of any settlement, if requested by [the healthcare provider] for any reason.” Doc. 28, Doctor’s Lien Exs. The contract also provided that, at the time of settlement, the balance due would be paid in full, but that payment was not contingent on settlement. The Jacksons’ attorney informed them that he would have to use the settlement proceeds to pay the amount owed their healthcare provider. The morning after executing the settlement documents, Michelle Jackson returned the trust account check to her attorney’s office and informed an employee at the office that they no longer wished to settle.

The district judge denied the Jacksons’ motion to reinstate their case. The judge explained that the Jacksons, pro se, stated that they had rejected and not consummated the settlement. Their counsel and Fikes, however, submitted copies of the settlement agreement, executed by the Jacksons, and evidence that the Jacksons *890 had accepted a check from Fikes for settlement of their claims.

Eleven business days later, on July 11, 2006, the Jacksons moved for reconsideration of the order denying their pro se motion for reinstatement. They did not dispute that their attorney had received the settlement check and deposited it into his trust account, nor did they dispute that they had signed the settlement agreement. Instead, they argued that they did not instruct their attorney to mail the executed settlement documents, that they did not authorize their attorney to submit the notice of settlement, and that they did not authorize their attorney to enter into a settlement on their behalf or to accept the settlement check. Essentially, the Jack-sons argued that fraud and misrepresentation on part of their attorney to the court made the settlement agreement void.

The Jacksons further contended that they had repudiated the settlement agreement. The settlement agreement provided that the settlement would remain confidential, and that confidentiality was a material part of the settlement agreement.

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Bluebook (online)
222 F. App'x 887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-con-way-transportation-services-inc-ca11-2007.