Rost ex rel. Rost v. Atkinson

2012 COA 74, 292 P.3d 1041, 2012 WL 1436136, 2012 Colo. App. LEXIS 635
CourtColorado Court of Appeals
DecidedApril 26, 2012
DocketNo. 11CA0727
StatusPublished
Cited by3 cases

This text of 2012 COA 74 (Rost ex rel. Rost v. Atkinson) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rost ex rel. Rost v. Atkinson, 2012 COA 74, 292 P.3d 1041, 2012 WL 1436136, 2012 Colo. App. LEXIS 635 (Colo. Ct. App. 2012).

Opinion

Opinion by

Judge HAWTHORNE.

€ 1 Defendant, Lynn Atkinson, appeals the trial court's order enforcing the settlement agreement she entered into with plaintiff, Kristine Rost, on her minor daughter's behalf.

12 In this case of first impression, we conclude that a summary judgment order resolving all issues in a case does not terminate a valid statutory settlement offer. Accordingly, we affirm.

I. Procedural Background

3 Plaintiff sued defendant for injuries her daughter sustained on defendant's property.

T4 Pursuant to section 13-17-202, C.R.S. 2011, defendant served plaintiff with a statutory settlement offer on February 15, 2011. The next day, at about 4 p.m., the court issued an order granting summary judgment for defendant, resolving all issues in the case. Plaintiff's counsel received notice of the ruling by e-file, before defendant received it via regular mail. At about 9 a.m. on February 17, plaintiff accepted the settlement offer via e-file. At about 11 am. on February 17, defendant e-mailed plaintiffs counsel and withdrew the settlement offer. The court rejected defendant's argument that the summary judgment order terminated the settlement offer and entered an order enforcing the settlement agreement. This appeal followed.

IL - Analysis

T5 Defendant contends that the court erred in enforcing the settlement agreement because the entry of summary judgment in her favor nullified the settlement offer before she accepted it. We disagree.

T6 Defendant's contention presents an issue of statutory interpretation, which we review de novo. Colorado Water Conservation Bd. v. Upper Gunmison River Water Conservancy Dist., 109 P.3d 585, 593 (Colo.2005). In interpreting a statute, we attempt to effectuate the General Assembly's purpose by looking first to the statutory language's plain and ordinary meaning. See id.

T7 Section 183-17-202(1)(a), C.R.S.2011, governs statutory settlement offers. It provides, in relevant part:

(IV) If an offer of settlement is accepted in writing within fourteen days after service of the offer, the offer of settlement shall constitute a binding settlement agreement, fully enforceable by the court in which the civil action is pending.
(V) An offer of settlement under this seetion shall remain open for at least fourteen days from the date of service unless withdrawn by service of withdrawal of the offer of settlement. ~

18 Thus, only two conditions terminate a valid settlement offer under section 18-17-202(1)(a):(1) the offer's withdrawal, or (2) expiration of the fourteen-day period.

T9 Here, neither condition occurred before plaintiff's acceptance, and the offer therefore became a binding settlement agreement once plaintiff accepted it.

$10 Although the statute does not explicitly address a summary judgment order's effect on a settlement offer, "[the general rule is that a settlement agreement supersedes a judgment and, so long as the agreement exists, the judgment merges into it" and "is thereby extinguished." Carpenter v. Young, 773 P.2d 561, 568 (Colo.1989). Consistent with this rule, our supreme court rejected the argument that summary judgment terminates a settlement offer in Centric-Jones Co. v. Hufnagel, 848 P.2d 942, 945 (Colo.1998).

{11 Nonetheless, defendant argues that Centric-Jones is distinguishable because that case involved summary judgment for only one of the two offerors-defendants; whereas here, summary judgment entirely resolved the case because there was only one defendant. She argues that Larson v. A.T.S.I, 859 P.2d 273 (Colo.App.1993), and not Centric-Jones, controls. We are not persuaded.

{12 In Larson, another division of this court concluded that Centric-Jones was inap-posite because the statutory settlement offer, which was made three days before trial start[1043]*1043ed, was not served within the prescribed statutory period, and the attempted acceptance occurred after a jury verdict. Larson, 859 P.2d at 275. The division reasoned that post-verdict acceptance did not further the statute's legislative intent to encourage settlements before trial. Id.

1 13 Here, in contrast, the settlement offer was made within the statutory period and the acceptance occurred before trial. See § 13-17-202(1)(a)(D)-(II), C.R.S.2011 (statutory settlement offer must be made more than fourteen days before trial and accepted within fourteen days after service). Moreover, Centric-Jones, which addressed a summary judgment's effect on a settlement offer, is more factually similar to this case than is Larson.

' 14 In concluding that summary judgment does not terminate a valid settlement offer, the supreme court reasoned that allowing a trial court's order to preempt a settlement offer would undermine the statute's purpose. Centric-Jones, $48 P.2d at 948. And the court emphasized the statutory framework governing settlement offers, not the fact that summary judgment in only one defendant offeror's favor had not resolved all claims in the case. Id.

115 Defendant asserts that in Centric-Jones the remaining defendant's liability was an outstanding issue, and thus the court's order did not constitute a final judgment. Here, in contrast, the trial court's summary judgment in defendant's favor completely resolved the case and therefore constituted a final judgment. Relying on Justice Erickson's concurrence in Centric-Jones, defendant argues that because summary judgment in her favor constituted a final appealable judgment, the trial court lacked authority to enforce the parties' settlement agreement. See id. at 950 (Erickson, J., concurring) ("because no final appealable judgment had been entered prior to Centric's acceptance of the defendants' offer, any rulings of the court remained open to modification, reconsideration, and withdrawal"). We are not persuaded, for two reasons.

T16 First, Justice Erickson's reasoning was not adopted by the majority. Instead of relying on the absence of a final appealable judgment, the majority concluded that a court must enforce a settlement offer accepted within the prescribed statutory period because "allow[ing] the trial court's order to preempt the running of the [statutory acceptance] period would be completely contrary to the statute." Id. at 948. We must follow this reasoning. See People v. White, 179 P.3d 58, 62 (Colo.App.2007) (when the Colorado Supreme Court announces an interpretative decision, its construction must be regarded as an authoritative statement of what the statute means).

T17 Second, the statute's plain language supports our conclusion. Section 183-17-202(1)(a)[II) provides that a settlement offer must be made more than fourteen days before trial, and must be accepted within fourteen days. Thus, these time periods, not the court's entry of final judgment, govern whether a statutory settlement offer has been validly accepted.

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Cite This Page — Counsel Stack

Bluebook (online)
2012 COA 74, 292 P.3d 1041, 2012 WL 1436136, 2012 Colo. App. LEXIS 635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rost-ex-rel-rost-v-atkinson-coloctapp-2012.