Shelton Ex Rel. Heider v. Sloan

1999 NMCA 048, 977 P.2d 1012, 127 N.M. 92
CourtNew Mexico Court of Appeals
DecidedFebruary 15, 1999
Docket18525
StatusPublished
Cited by21 cases

This text of 1999 NMCA 048 (Shelton Ex Rel. Heider v. Sloan) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelton Ex Rel. Heider v. Sloan, 1999 NMCA 048, 977 P.2d 1012, 127 N.M. 92 (N.M. Ct. App. 1999).

Opinion

HARTZ, Judge.

{1} Rule 1-068 NMRA 1999 provides an incentive for defendants to make reasonable settlement offers before trial. Under the Rule a defendant may serve the plaintiff with an offer to allow judgment to be taken against the defendant for a specified amount, together with accrued costs. If the plaintiff does not accept the offer and ultimately obtains a judgment less favorable than the offer, the plaintiff must pay the costs incurred after the date of the offer. If the plaintiff accepts the offer within ten days of service of the offer, judgment may be entered in accordance with the offer.

{2} The threshold issue before us in this case is'whether a plaintiff may still accept an offer within the ten-day period despite making a previous counteroffer during the period. We hold that a Rule 1-068 offer is irrevocable during the ten-day period provided by the Rule, and a plaintiff can accept the offer any time during the period, regardless of whether the plaintiff has made a counteroffer to try to obtain a more favorable settlement.

{3} We then address (1) whether a plaintiff is no longer bound by a Rule 1-068 agreement when the defendant challenges the validity of the plaintiffs acceptance on the eve of trial and prior to entry of judgment on the agreement and (2) whether a district court can approve a settlement on behalf of a minor when an intervening jury verdict has found (a) that the minor suffered substantially greater damages than provided by the settlement and (b) that the defendant was almost totally responsible for the damages. We reverse the district court’s judgment and remand for a determination whether the settlement is fair to the children.

I. BACKGROUND

{4} Barbara and James Shelton (Plaintiffs), individually and on behalf of their children, Michael and Virginia Heider, sued Joseph E. Sloan and the New Mexico Highway Department after Sloan’s car crashed head-on into the Sheltons’ car during a snowstorm in December 1991. Mrs. Shelton was seriously injured. Mr. Shelton and Michael were less seriously injured. Virginia was not physically injured but suffered mental distress. Trial was held in Santa Fe in September 1996. This dispute arises from efforts by Sloan and Plaintiffs to settle the children’s claims during the month before trial.

{5} On August 28, 1996, Sloan mailed formal Rule 1-068 offers of judgment of $35,-001 plus costs for Michael and $20,001 plus costs for Virginia. Plaintiffs eounteroffered on September 5. Sloan responded the same day as follows:

This will confirm that you have ... made an offer to settle the claim of Mike for $50,000 and $35,000 for Virginia. This offer has been rejected. While we have repeatedly attempted to settle this matter, we want to re-extend the offer to Mike of $35,000 and Virginia of $20,000.

{6} On September 10, Plaintiffs filed in district court an Acceptance of Offers of Judgment (the Acceptance). They attached a bill of costs in the amount of $16,482.05. There is no dispute that the acceptance was within the ten-day period provided by Rule 1-068. See Rule 1-006 NMRA 1999 (computation of time).

{7} On Friday, September 20, three days before trial, Plaintiffs filed a motion in limine seeking to exclude from trial any reference to the settlement on behalf of the children. The record on appeal does not include a transcript of any hearing on the motion. No order was entered.

{8} On Sunday, the eve of trial, Sloan put the Plaintiffs’ acceptance in question by hand-delivering to their attorneys a Notice of Objection (the Notice). The Notice reads as follows:

COMES NOW, Defendant Sloan, by and through counsel, and hereby objects to the purported costs of the Plaintiffs. As grounds therefore [sic], the Defendant would state and show as follows:
1. The Plaintiffs rejected this Offer of Judgment and accordingly the Offer of Judgment is not withstanding [sic]. The Plaintiffs made a counter offer which, as a matter of law, serves to reject the Offer of Judgment.
2. In addition, the purported costs are not reasonable, proper, nor appropriate items to tax as costs. These fall into a number of raw categories. They include personal expenses such as flowers, nontaxable expenses such as phone calls, photocopies, facsimile charges and legal research to matters which were not properly taxable as costs as they did not involve this Defendant. This includes depositions unrelated to this Defendant including, but not limited to, Luke, Cantwell, etc. It further includes matters which are not proper such as a claim for Dr. McQuain when his deposition was not taken prior to any purported acceptance of the offer and did not testify as to any of the Plaintiffs. Furthermore, the [sic] claim airfare for Dr. McQuain yet no such airfare was paid. They have also made a claim for Dr. Jabczenski, and he did not testify at any time prior to the Offer of Judgment nor prior to the purported acceptance of the offer of judgment.

(Emphasis added.)

{9} Despite the Notice, Sloan’s insurer wrote two settlement checks to Plaintiffs. They were in the amounts stated in the Acceptance, except that they did not include costs. The checks, dated the first day of trial, were sent to the office of Plaintiffs’ attorneys, which was located in Albuquerque.

{10} Trial began in Santa Fe on September 26, with both Sloan and the State of New Mexico Highway Department as defendants. The two defendants had separate counsel. During their opening statements, Plaintiffs’ attorney described the children’s injuries and Sloan’s attorney stated that the children’s injuries were “minimal to nonexistent.” The children were not called as witnesses. In closing argument Plaintiffs’ attorney described Michael’s medical bills, Virginia’s emotional damages, and both children’s loss of their mother’s guidance and counseling. He argued that the children as well as the parents were “entitled to receive fair compensation” for Mrs. Shelton’s injury and future physical limitations. In response, Sloan’s attorney again referred to the children’s lack of injury, pointing out that they had failed to testify: “[W]hy a fifteen-year-old couldn’t come here is another question. Why didn’t they put on the kids? Because they’re doing well. Because they’ve done well. I think there’s no evidence of any problem with Michael or Virginia. Virginia had nothing. Michael was treated.” The attorney for the Highway Department did not allude to the children’s injuries or damages in his closing argument.

{11} The jury reached a verdict on Friday, September 28. It found Sloan to be 99 percent at fault and James Shelton to be one percent comparatively negligent. No fault was ascribed to the Highway Department. The jury assessed damages as $500,000 for Mrs. Shelton, $50,000 for Mr. Shelton, and $100,000 each for Michael and Virginia. When Plaintiffs’ attorneys returned to Albuquerque, they sent back the children’s settlement checks with the notation “Rejected.”

{12} After trial Sloan filed a Motion to Enforce Settlement and/or For Sanctions, requesting that judgment be entered on the acceptance of the Rule 1-068 offers. The district court granted the motion after a hearing.

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Cite This Page — Counsel Stack

Bluebook (online)
1999 NMCA 048, 977 P.2d 1012, 127 N.M. 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelton-ex-rel-heider-v-sloan-nmctapp-1999.