Townsend v. Square

643 So. 2d 787, 1994 WL 528485
CourtLouisiana Court of Appeal
DecidedSeptember 29, 1994
Docket94-CA-0758
StatusPublished
Cited by20 cases

This text of 643 So. 2d 787 (Townsend v. Square) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Townsend v. Square, 643 So. 2d 787, 1994 WL 528485 (La. Ct. App. 1994).

Opinion

643 So.2d 787 (1994)

Phillip TOWNSEND
v.
John SQUARE, Regional Transit Authority, et al.

No. 94-CA-0758.

Court of Appeal of Louisiana, Fourth Circuit.

September 29, 1994.

Robert G. Harvey, Sr., William J. Larzelere, III, Robert G. Harvey, Sr. & Associates, New Orleans, for plaintiff-appellant.

Veronica E. Henry, David Belfield, III, Wilkerson & Henry, L.L.C., New Orleans, for defendants-appellees.

Before SCHOTT, C.J., and BYRNES and WALTZER, JJ.

*788 BYRNES, Judge.

Plaintiff Phillip Townsend (Townsend) appeals from a judgment granting a motion to enforce a settlement agreement.[1] We reverse.

On or about October 25, 1989, Townsend was allegedly injured when the Regional Transit Authority (RTA) bus on which he was riding collided with a van.

On June 8, 1990, Townsend filed suit against, among others, RTA and John Square, the driver of the RTA bus on which Townsend was injured (hereinafter referred to collectively as "defendants").

Townsend's suit was filed by attorney Robert G. Harvey (Harvey). At some point unclear from the record, Townsend discharged Harvey and hired William Daniel Dyess (Dyess) as his counsel of record.

Dyess entered into settlement negotiations with defendants. The record contains a number of letters detailing these negotiations. These letters form the basis of defendants' motion to enforce settlement agreement.

On April 17, 1993, Townsend sent Dyess a letter which provided:

After our conversation of April 16, 1993 advising me that RTA desired to pay me approximately $25,000.00 I talked to my wife and we decided that this amount is insufficient.
Additionally, I would like to return to my former attorney and would request that you return my file to Mr. Robert Harvey
...

I would appreciate if you would do no further work on my case.

On April 21, 1993, Dyess sent counsel for defendants a letter which provided:

This is to confirm our telephone conversation of April 21, 1993 wherein we agreed upon a settlement of $23,250.00 in the above mentioned matter.
I look forward to hearing from you in the future. If you have any questions regarding this matter, please give me a call.

On April 23, 1993, counsel for defendants sent Dyess a letter which provided:

This will confirm our telephone conversation of April 21, 1993 during which agreement was reached to recommend settlement of the captioned claim to our respective clients in the sum of $23,250. [Emphasis added]

On June 22, 1993, counsel for defendants sent Dyess the following letter:

Please find enclosed the original and one copy of the Motion and Order of Dismissal and Release and the Regional Transit Authority's checks in the amounts of $18,870.25 made payable to Phillip Townsend and you; $3,954.75 made payable to Phillip Townsend, you, St. Charles General and Edward F. Bukaty, III; and $425 made payable to Phillip Townsend, you, Jay C. Zainey and the Medical Center of Louisiana, representing settlement of the claims brought by the plaintiff in this matter.
Please have the documents properly executed and returned to the undersigned. (Emphasis added).

Townsend did not execute the dismissal and release, nor negotiate the checks.

On December 21, 1993, defendants filed a motion to enforce settlement agreement. In their motion, defendants argued that by his letter of April 21, 1993, Dyess confirmed settlement of Townsend's claim for $23,250.

Townsend filed an opposition in which he argued that Dyess did not have authority to settle his claim on April 21, 1993; that Townsend did not agree to settle his claim for $23,250; and that LSA-C.C. Art. 3071's requirements for perfecting a binding settlement agreement had not been fulfilled. Attached to Townsend's opposition was Townsend's letter of April 17, 1993, plus the following affidavit, which was executed by Dyess on January 11, 1994:

I did enter into settlement negotiations with defendants' counsel in April of 1993. By April 21, 1993, I had been discharged *789 by a letter from Phillip Townsend, however, I had no knowledge of this letter at the time.

LSA-C.C. Art. 3071 provides:

A transaction or compromise is an agreement between two or more persons, who, for preventing or putting an end to a lawsuit, adjust their differences by mutual consent, in the manner which they agree on, and which every one of them prefers to the hope of gaining, balanced by the danger of losing.
This contract must be either reduced to writing or recited in open court and capable of being transcribed from the record of the proceeding. The agreement recited in open court confers upon each of them the right of judicially enforcing its performance, although its substance may thereafter be written in a more convenient form. [Emphasis added]

Although LSA-C.C. Art. 3071 requires a written contract signed by both parties, the agreement need not be contained in one document. Felder v. Georgia Pacific Corp., 405 So.2d 521, 523 (La.1981); McRae v. Ellis, 632 So.2d 841, 843 (La.App. 4th Cir.1994), writ den. 637 So.2d 157 (La.1994).

Defendants-appellees' case ultimately stands or falls on their reliance on Felder, supra. Felder does not support their position. In Felder the defendant prepared a release document which was presented to the plaintiff for execution requiring the defendant to pay plaintiff $700. Defendant sent a draft for $700 signed by an authorized agent to the plaintiff the next day.

Similarly, in the instant case, the defendants prepared and sent to Townsend in the previously mentioned letter of June 22, 1993, a Motion and Order of Dismissal and Release along with three RTA settlement checks. Here the similarities end. In Felder the plaintiff himself signed the release form furnished by the defendant and the defendant signed as a witness on the same form. Defendant got the performance he wanted, i.e., a written release signed by the plaintiff. Plaintiff got what he bargained for, a draft for $700 from the defendant.

In the instant case, although a copy of defendants' Motion and Order of Dismissal and Release is not in the record, it is undisputed that the signature of the plaintiff does not appear thereon in any capacity, whether as principal or as witness. There is no proof in the record that the defendants' signatures appeared anywhere on the documents either. See McRae v. Ellis, supra, where this Court had before it unsigned documents very similar to the instant case. There are no cases in which unsigned settlement documents have been held to satisfy the requirements of LSA-C.C. art. 3071. No Louisiana court has ever enforced such documents unsigned, including the Felder court.

Doga v. Southern Farm Bureau Ins. Co., 511 So.2d 78 (La.App. 3 Cir.1987) represents the outer limits of what has been held to satisfy the requirements of LSA-C.C. art. 3071. In Doga the court stated that: "A draft may serve as a written compromise where it recites that it is in full payment for all claims as a result of an accident and the draft is endorsed and negotiated." (Emphasis added). Plaintiff neither endorsed nor negotiated the settlement checks in the instant case.

In Felder there was no requirement to hold the draft pending execution of the release. Plaintiff had already signed it.

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Cite This Page — Counsel Stack

Bluebook (online)
643 So. 2d 787, 1994 WL 528485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsend-v-square-lactapp-1994.