in Re: AAA Texas County Mutual Insurance Company
12-15-00277-CV
Tex. App.Dec 22, 2015Background
- Jackson, a Real-Party-in-Interest, pursued UIM benefits from AAA Texas County Mutual Insurance Co. in Gregg County; AAA made a settlement offer to resolve the entire UIM claim for $20,000.00, which was in addition to other payments already made; Jackson counter-offered and allegedly rejected AAA’s offer; the trial court denied AAA’s motion to sever and abate the extra-contractual claim; AAA moved to sever/abate based on the offer/acceptance record; the trial court relied on its file and documents in denying the motion to sever and abate.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did AAA’s offer intend to settle the entire UIM claim? | Jackson maintains the offer was only for undisputed amount. | AAA's offer was a settlement of the entire UIM claim. | Yes, AAA’s offer was to settle the entire UIM claim. |
| Did Jackson's counter-offer terminate AAA’s offer? | Jackson counter-offered, thus rejecting the initial offer. | Counter-offer terminated the original offer and nullified its terms. | Yes, the counter-offer terminated AAA’s offer. |
| Did the trial court abuse its discretion by denying sever/abate based on the offer record? | The record showed AAA’s offer and Jackson’s rejection; court should sever/abate. | The proceeding and offers were not properly considered for severance/abatement. | Yes, the court abused its discretion by denying sever/abate based on the settlement record. |
Key Cases Cited
- American Nat’l Ins. Co. v. Warnock, 114 S.W.2d 1161 (Tex. 1938) (clear and definite offer and acceptance required for settlement contract)
- Gulf Coast Farmers Co-op v. Valley Co-op Oil Mill, 572 S.W.2d 726 (Tex. Civ. App.—Corpus Christi 1978) (offer must be clear and definite; acceptance of all terms)
- Donzis v. McLaughlin, 981 S.W.2d 58 (Tex. App.—San Antonio 1998) (settlement enforceability requires a meeting of the minds and unconditional acceptance)
- Hernandez v. Telles, 663 S.W.2d 91 (Tex. App.—El Paso 1983) (unconditional acceptance within the terms is required for contract formation)
- Blackstone v. Thalman, 949 S.W.2d 470 (Tex. App.—Houston [14th Dist.] 1997) (a counteroffer is a rejection of the original offer)