Said v. Virginia Commonwealth University/Medical College

130 F.R.D. 60, 16 Fed. R. Serv. 3d 142, 1990 U.S. Dist. LEXIS 2406, 52 Fair Empl. Prac. Cas. (BNA) 339, 1990 WL 21022
CourtDistrict Court, E.D. Virginia
DecidedMarch 5, 1990
DocketNo. CA 89-00526-R
StatusPublished
Cited by24 cases

This text of 130 F.R.D. 60 (Said v. Virginia Commonwealth University/Medical College) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Said v. Virginia Commonwealth University/Medical College, 130 F.R.D. 60, 16 Fed. R. Serv. 3d 142, 1990 U.S. Dist. LEXIS 2406, 52 Fair Empl. Prac. Cas. (BNA) 339, 1990 WL 21022 (E.D. Va. 1990).

Opinion

MEMORANDUM OPINION

RICHARD L. WILLIAMS, District Judge.

This case is before the Court on the plaintiff’s petition for attorney’s fees and costs and the defendants’ motions to strike its offer of judgment and to reset this case for trial. For the reasons stated below, the plaintiff’s petition-is GRANTED AS MODIFIED and the defendants’ motions are DENIED.

I.

Wadie I. Said worked in the Department of Pathology of the Virginia Commonwealth University/Medical College of Virginia Hospitals (MCV) from January 1972 through November 30, 1988. At the end of his tenure there, Mr. Said was a Medical Technologist Senior conducting paternity testing services. In October of 1988, Said was notified by Dr. George Vennart, the Chairman of the Department of Pathology and a defendant in this suit, that his position was being abolished because of financial problems at the hospital.

In this lawsuit, Mr. Said alleges that his position was eliminated in retaliation for his prior complaints of discrimination filed with the EEOC and in federal court, in retaliation for his exercise of his first amendment rights in discussing financial irregularities in the paternity testing lab, and because of his national origin. After some of the counts of his complaint were dismissed by agreement of the parties, this case was scheduled for a trial to begin on February 27, 1990. The plaintiff’s remaining claims asserted causes of action against Dr. Vennart in his individual capacity under 42 U.S.C. § 1983, and against MCV under Title VII, 42 U.S.C. § 2000e-3.

After a deposition held on February 12, 1990, counsel for both sides met to discuss settlement of this case. The defendants offered a $5,000 lump sum settlement, but [62]*62counsel for the plaintiff stated that his client would be unlikely to accept that offer because his attorney’s fees already exceeded that amount. No further action was taken on that settlement offer.

On February 14, 1990, the defendants made a Rule 68 offer of judgment for $5,000 “together with costs accrued to this date.” The plaintiff accepted that offer on February 23, 1990, and filed a contemporaneous petition for his attorney’s fees and costs in this litigation. Specifically, the plaintiff asked that the Court order judgment to be entered against the defendants for the $5,000 plus $8,606.95 in costs. His itemized petition for costs includes $7,285.50 in attorney’s fees and costs, $1,111.45 court reporter fees for deposition transcripts, $120 for service of summons and the complaint, and $90 in filing charges.

The defendants then moved to strike their offer of judgment and the acceptance, and to reset this case for trial. In support of this motion, they allege that their offer of $5,000 was intended to include all recoverable costs and attorney’s fees, and that plaintiff’s counsel understood this to be their intention. Therefore, the defendants argue that the acceptance of the offer was invalid because there was no “meeting of the minds” as to the terms of that offer. Further, they assert that their attorney’s authority to compromise this case on the behalf of the Attorney General of Virginia was limited to $5,000, and that an offer made for more than that amount would be an ultra vires act by which the Commonwealth and its divisions could not be bound.

II.

The defendants’ argument that the offer of judgment was invalid because it constituted an ultra vires contract by which the Commonwealth cannot be bound is without merit. Virginia has given its assistant Attorneys General substantial authority to settle cases like this one:

[Wjhen any dispute, claim, or controversy involves the interests of any department, institution, division, board or bureau of the Commonwealth, and the amount in dispute does not exceed $50,-000, the Attorney General or an assistant Attorney General assigned to such department, institution, division, board or bureau shall have the authority to compromise and settle or discharge the same provided such action is approved by the head of the department, institution, division, board or bureau whose interests are in issue.

Va.Code § 2.1-127 (Supp.1989). The amount in dispute in this claim is well under $50,000, and the Commonwealth has not argued that the head of the institution involved here did not approve this settlement. Therefore, the assistant Attorney General involved in this case did have the statutory authority to enter into this settlement, and her offer of judgment was not an ultra vires contract that was void ab initio. Cf. Richard L. Deal & Assoc. v. Commonwealth, 224 Va. 618, 299 S.E.2d 346 (1983).

Nevertheless, counsel for the defendants asserts that her authority to settle this case was limited to $5,000. Her offer of judgment, however, was for $5,000 “with costs accrued.” Whether “costs” is interpreted to include attorney’s fees or not, it was clearly her intention that the ultimate payment by the Commonwealth to this plaintiff would be over $5,000. Her signature on the offer of judgment and the statutory language cited above belie her assertion that her authority was limited to $5,000 in total payment. The Court finds that her settlement authority extended to $5,000 “with costs accrued,” and the judgment imposed below is consistent with that authority.1

III.

Turning to the defendants’ Rule 68 argument, it is important to realize that [63]*63there are a number of ways to structure a negotiated settlement of an ongoing case. A normal settlement agreement is in nearly all respects just a garden-variety contract. Therefore, in order for a normal settlement to be effective, it must comply with the normal rules of contract law, and there must be a “meeting of the minds” as to the terms of the agreement. See, e.g., Cruz v. Pacific Am. Ins. Corp., 337 F.2d 746, 749 (9th Cir.1964).

A Rule 68 offer of judgment, though, has characteristics that distinguish it from a normal contract. When a defending party chooses to couch its settlement offer in terms of a Rule 68 offer of judgment, it is taking advantage of certain tactical advantages not available to the normal offeror. Under the terms of Rule 68, if a timely offer of judgment is not accepted and “the judgment finally obtained by the offeree is not more favorable than the offer, the offeree must pay the costs incurred after the making of the offer.” Fed.R.Civ.P. 68. Unlike the offeree of an ordinary contract, the Rule 68 offeree is bound by an offer of judgment whether it is accepted or not.

A normal final settlement offer, then, is like an ordinary contract offer in that it leaves the offeree two options: accept it on its terms, or reject it and run the risk of receiving a lesser judgment at trial. A Rule 68 offer of judgment, on the other hand, presents a more draconian choice to the plaintiff: accept it on its terms, or go to trial and run the risk of obtaining a less favorable judgment and paying the defending party’s post-offer costs.

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Bluebook (online)
130 F.R.D. 60, 16 Fed. R. Serv. 3d 142, 1990 U.S. Dist. LEXIS 2406, 52 Fair Empl. Prac. Cas. (BNA) 339, 1990 WL 21022, Counsel Stack Legal Research, https://law.counselstack.com/opinion/said-v-virginia-commonwealth-universitymedical-college-vaed-1990.