PARK HOTELS & RESORTS, INC. v. MICHAEL SMITH

CourtCourt of Appeals of Georgia
DecidedJune 8, 2022
DocketA22A0389
StatusPublished

This text of PARK HOTELS & RESORTS, INC. v. MICHAEL SMITH (PARK HOTELS & RESORTS, INC. v. MICHAEL SMITH) 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
PARK HOTELS & RESORTS, INC. v. MICHAEL SMITH, (Ga. Ct. App. 2022).

Opinion

FOURTH DIVISION DILLARD, P. J., MERCIER and MARKLE, 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

June 8, 2022

In the Court of Appeals of Georgia A22A0388, A22A0389. MICHAEL SMITH v. PARKS HOTELS & RESORTS, INC. et al.; and vice versa.

DILLARD, Presiding Judge.

In Case No. A22A0388, Michael Smith—as conservator of five minor children

whose mother was killed during a shift working as a housekeeper for Parks Hotels &

Resorts, Inc. (“Hilton”)—appeals the trial court’s denial of his motion to set aside a

workers’ compensation award issued by the Georgia State Board of Workers’

Compensation (the “Board”), reflecting its approval of a settlement agreement and

stipulation entered into by Hilton and Smith’s predecessor, Claire Cottingham. In

doing so, Smith argues the trial court erred by (1) finding that he invited or induced

any error in the award because the settlement was executed before he was appointed

as the children’s conservator; (2) permitting Hilton to seek equitable relief to protect a void settlement agreement it drafted and submitted for approval; and (3) relying on

principles of estoppel in denying his motion.

In Case No. A22A0389, Hilton cross-appeals, arguing that—although it

correctly denied Smith’s motion to set aside the workers’ compensation award—the

trial court erred in finding there was a non-amendable defect on the face of the record

because (1) the Board had statutory authority to approve the settlement, even with the

limited powers the probate court granted to Cottingham as the initial conservator for

the children; and (2) even if Cottingham needed additional powers or an additional

appointment by the Board to legally compromise the children’s claim arising from

their mother’s death, the Board had an express right to easily correct any such defect,

rendering it amendable. For the reasons set forth infra, we affirm the trial court’s

decision in both cases.1

Here, the undisputed record shows that in 2016, Stephanie Riddle—the mother

of the five children at issue—worked as a housekeeper at a Hilton hotel. On July 7,

2016, while Riddle was at work, her boyfriend went to her workplace, and after being

1 Oral argument was held in these consolidated appeals on February 1, 2022, and is archived on the Court’s website. See Court of Appeals of Georgia, Oral Argument, Case No. A22A0388 and A22A0399 (Feb. 1, 2022), available at https://www.gaappeals.us/oav/A22A0388.php

2 told by another Hilton employee where to find her, entered the room she was cleaning

and shot her to death. Thereafter, Cottingham (Riddle’s aunt) was appointed by the

probate court to be the permanent legal guardian of four of Riddle’s children and

temporary guardian of the other child. Cottingham then retained attorney Leighton

Deming to represent her in her capacity as the children’s guardian.

On August 1, 2016, Deming and Cottingham (on behalf of the children) filed

a workers’ compensation claim with the Board related to Riddle’s death. Hilton

responded that even though Riddle was shot at work, Cottingham’s claim was “not

a compensable accident” under Georgia law. Subsequently, on October 27, 2016, the

Board sent a notice of mediation to the parties, ordering them to attend mediation and

noting that Deming requested “mediation to resolve [Riddle’s] entitlement to income

benefits, medical treatment/expenses, and any other pending issues, including but not

limited to settlement.”

On November 21, 2016, the probate court (in five separate orders) issued letters

of conservatorship, appointing Cottingham as the conservator of all five children.

And after the Board-ordered mediation, Cottingham—individually and on behalf of

the children—reached a settlement with Hilton, under which Hilton agreed to pay a

lump sum of $150,000 to settle the claim. In exchange for this payment, Cottingham

3 signed a settlement, release, and indemnification, which provided, in part, that she

agreed to

completely release and forever discharge [Hilton] from any and all past, present, or future claims, demands, obligations, actions, causes of action, wrongful death claims, loss of consortium claims, contribution or indemnity claims, rights, damages, costs, losses of services, expenses and compensation of any nature whatsoever, whether based on workers’ compensation, a tort, [or] contract . . . .2

In the settlement agreement, Cottingham also executed a “warranty of capacity to

execute agreement[,]” certifying that she had the sole right and exclusive authority

to execute the agreement and receive the sums specified in it. Further, the settlement

agreement contained a provision requiring both parties to “cooperate fully and

execute any and all supplementary documents and to take all additional actions,

which may be necessary or appropriate to give full force and effect to the basic terms

and intent of [the] [s]ettlement [a]greement to specifically include a dismissal of [any]

lawsuit in its entirety with prejudice.”

In conjunction with the settlement agreement, the parties submitted a so-called

“throw away memorandum” to the Board, explaining that the $150,000 lump sum

2 (Emphasis supplied).

4 payment included (1) $37,500 for Cottingham’s attorney fees; (2) $2,639 for

reimbursement of expenses; and (3) $109,861 to be paid to Cottingham for the benefit

of the Riddle children. The memorandum also stated that the parties “specifically

agree[d] that the conservatorships for all minor children will be funded as required

by law and specifically approved by the [p]robate [c]ourt.”

Thereafter, on March 2, 2017, the probate court appointed Ann Herrera as the

administrator of Riddle’s estate, which authorized her to receive the settlement funds,

and she later obtained the bond necessary to do so. The next day, one of Hilton’s

representatives sent a revised settlement agreement and throw away memorandum to

Herrera, indicating that the primary change was that the funds owed to the children

would now be paid to her as the administrator of the estate. Herrera agreed to this

revision. Then, on March 4, 2017, Cottingham and Hilton filed a “stipulation and

agreement” with the Board. In the stipulation, Hilton denied liability for Riddle’s

death, and the parties agreed that it did not arise in the course of her employment. The

parties requested that the Board adopt the stipulation as its findings of fact and “enter

its [a]ward in terms of law based upon the [s]tipulations adjudicating the absence of

liability on the part of Hilton . . . .” Cottingham signed the stipulation as both the

guardian and conservator of Riddle’s children.

5 Subsequently, on March 29, 2017, the Board adopted the parties’ stipulation

and approved the settlement agreement. And approximately one year later, on March

27, 2018, Herrera filed a notice in the probate court, detailing the dates and amounts

for when Hilton paid her different portions of the settlement funds. Then, after

deducting various fees and expenses, Herrera received $98,740.67 from Hilton, which

is approximately $20,000 for the benefit of each child.

In early 2018, Herrera filed a petition to remove Cottingham as the children’s

conservator and appoint a county conservator to replace her, contending that

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