Jason Torres v. Cassandra Elkin

Court of Appeals of Georgia·Decided July 12, 2012·No. A12A0278·Published

Opinion

FIRST DIVISION

ELLINGTON, C. J.,

PHIPPS, P. J., and DILLARD, J.

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.

(Court of Appeals Rule 4 (b) and Rule 37 (b), February 21, 2008)

http://www.gaappeals.us/rules/

July 12, 2012

In the Court of Appeals of Georgia A12A0278. TORRES v. ELKIN.

DILLARD, Judge In this personal-injury action arising from a motor-vehicle accident, Jason Torres appeals the trial court’s order granting Cassandra Lee Elkin’s motion to enforce settlement and denying his motion for partial summary judgment. Torres argues that Elkin’s insurance company’s purported acceptance was neither identical to the terms of his offer nor unconditional and unequivocal. For the reasons discussed infra, we conclude that the parties failed to enter into an enforceable settlement agreement and thus reverse the trial court’s order.

The record in this case shows that on March 27, 2008, Torres and Elkin were involved in a motor-vehicle accident, which resulted in Torres suffering injuries so severe that he incurred over $500,000 in medical expenses. Elkin’s vehicle was

covered by an insurance policy issued by Infinity Standard Insurance Company (“Infinity”). After the accident, Infinity offered to settle Torres’s bodily-injury claims for $25,000 in exchange for Torres executing an enclosed release and agreeing to satisfy any medical liens. Torres’s attorney rejected the offer and returned the check for $25,000, indicating that his client had not yet made a decision about whether to settle the case. Subsequently, Infinity resent a check for $25,000 and proposed a new settlement agreement, according to which Infinity would settle Torres’s claims in exchange for Torres’s execution of a limited-liability release.

Torres’s attorney rejected Infinity’s proposed offer in a letter dated February 12, 2010, and made a counteroffer to settle Torres’s claims if certain conditions were met by “the end of the month.” Torres’s attorney’s letter stated in relevant part:

We will need to [sic] a release of your insured that reserves Mr. Torres’

rights to recover uninsured motorist benefits and that does not contain any language about how my client has not relied upon any representations by your side in signing the release. If you get me that described release with a check for $250.00 and all of the statements and insurance documents requested above by the end of the month, then my client will sign the release. Please note that acceptance may only occur by my timely receipt of all of the requested items.

The “documents requested above” consisted of the following: (1) any recorded statements from eyewitnesses to the accident; (2) recorded statements obtained by Infinity from Elkin; (3) verification under oath that the previously offered $25,000 represented the full amount of available bodily-injury insurance coverage; (4) a copy of each insurance policy issued by Infinity with a statement under oath from a corporate officer or claims manager verifying that the documents were complete and accurate copies of each policy; and (5) a release that reserved Torres’s rights to recover uninsured-motor-vehicle benefits and that did not contain any language that Torres “had not relied upon any representations” by Infinity.

Infinity faxed Torres’s attorney a letter on February 22, 2010, asking whether the $250.00 represented an additional property-damage claim. On February 24, 2010, Infinity wrote Torres’s attorney, advising him that Infinity was preparing a response to his February 12, 2010 letter and asking whether his client would agree to satisfy any medical liens arising from the accident.

In a separate letter dated February 24, 2010, Infinity responded to the February 12 offer to settle Torres’s claims, noting that Torres’s attorney had already received the requested affidavits, a check for $25,000, and the declarations page. Infinity also attached a certified copy of Elkin’s liability-insurance policy, Elkin’s recorded

statement, a check for $250.00, and a third proposed limited-liability release. The letter from the Infinity representative further stated, “Please note that I have included indemnification language in the release due to the hospital lien notices we have received. I have not received a response to the question in my letter faxed to you yesterday in which I asked if you intended to protect the liens.” Infinity went on to emphasize its “trust that your office will satisfy any liens arising out of this matter.” Infinity’s enclosed release required Torres to indemnify Infinity for all claims for liens arising out of the accident and to pay all reasonable costs in defending against liens, including attorney’s fees.1 At the close of the letter, Infinity asked to be informed immediately “if any items are deficient in any manner” and emphasized Infinity’s “intent to comply with all conditions of [Torres’s] demand.” There were no further communications between the parties before the settlement offer expired on February 28, 2010.

1 The release provided in relevant part, “As further consideration for payment of said sum, the Undersigned hereby agrees to completely indemnify and hold harmless the Limited Releasee and his Insurance Carrier, identified above, for any and all claims for liens (including but not limited to all attorney, hospital, physician, ERISA, Medicare, and Medicaid liens) arising out of personal injuries to the Undersigned asserted by anyone or any entity resulting from the above-described occurrence, said indemnity to include all reasonable costs in defending against such liens including attorney’s fees.”

On March 4, 2010, Torres’s attorney wrote to Infinity, acknowledging the receipt of what he described as Infinity’s “counteroffer to settle [his] client’s bodily injury claims” and insisting that his client would not agree to defend Infinity or Elkin against claims by third parties. The next day Infinity sent another release that did not contain indemnification language, but which did contain language stating that Torres had not relied on any representations outside of the agreement. The parties communicated further regarding the documentation Infinity provided, but they were unable to resolve the matter.

On March 9, 2010, Torres filed suit against Elkins and the other motorists involved, Cathy Isola and Michael Carter, for injuries and other damages that he suffered as a result of the motor-vehicle accident.2 Shortly thereafter, uninsured- motorist carriers Progressive Max Insurance Company and Progressive Premier Insurance Company of Illinois entered appearances as unnamed defendants in this suit. On February 1, 2011, Elkin filed a motion to enforce settlement, contending that Infinity had settled with Torres on Elkin’s behalf by its letter of February 24, 2010. Torres opposed the settlement motion and moved for partial summary judgment on

2 Torres dismissed defendant Carter without prejudice on May 27, 2010.

the same issue. The trial court granted Elkin’s motion to enforce the settlement and denied Torres’s motion for partial summary judgment on April 18, 2011, holding that Infinity had accepted Torres’s settlement offer via its February 24, 2010 letter.

On May 13, 2011, Torres filed a notice of appeal from the April 18 order.

However, this Court dismissed the appeal because the April 18 order did not dispose of all claims against all parties. A few months later, Torres filed a motion to dismiss defendant Isola and the two defendant insurance carriers and for entry of final judgment, and on August 15, 2011, the trial court granted this motion, stating, “[t]he issues having been duly heard and a decision having been rendered, it is hereby ordered and adjudged that judgment is entered in favor of Defendant Elkin, and that Plaintiff takes nothing by this action.”

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