Omni Builders Risk, Inc. v. Bennett
313 Ga. App. 358
Ga. Ct. App.2011Background
- Omni Builders Risk, Inc. (n/k/a Best Value Insurance Services) appeals a trial-court order enforcing a mediated settlement with Lori Bennett.
- Bennett sued Omni for breach of contract, expenses of litigation, and fraudulent inducement after mediation produced a proposed settlement.
- The trial court granted Bennett’s motion to enforce the settlement and denied Omni’s cross-motion for summary judgment.
- Omni argued the mediator lacked authority and Bennett’s signature did not bind Omni because Dillard’s signature was required.
- The EEOC dismissal occurred after the mediation and before the litigation proceeded, affecting the context but not the core contract dispute.
- The appellate court later reversed, holding Omni’s attorney lacked apparent authority to bind Omni under the settlement memorandum.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Omni is bound by the attorney’s signature under apparent authority. | Omni’s attorney acted with apparent authority; Bennett relied on the signature. | No apparent authority; Dillard’s signature was required; no express restrictions were known. | No binding settlement; attorney lacked apparent authority to bind Omni. |
| Whether the Settlement Memorandum was an enforceable contract. | Settlement memorandum memorialized an oral agreement and is enforceable. | Memorandum required Dillard’s signature; without it, no enforceable contract. | Not enforceable; no binding contract without Dillard’s signature. |
Key Cases Cited
- Devereaux v. C. & S. Nat. Bank, 172 Ga. App. 53 (1984) (apparent authority to enter settlements for client; binding if no known limitations)
- Brumbelow v. Northern & Co., 251 Ga. 674 (1983) (attorney authority to bind client in settlements; USCR 4.12)
- Morris v. Williams, 214 Ga. App. 526 (1994) (apparent authority based on principal’s conduct; no authority without claimant knowledge)
- Capital Color Printing v. Ahern, 291 Ga. App. 101 (2008) (apparent authority requires principal’s conduct creating reasonable belief)
- Powerhouse Custom Homes v. 84 Lumber Co., 307 Ga. App. 605 (2011) (mediation proposal not enforceable if one party rejects settlement)
- Int’l Indem. Co. v. Odom, 174 Ga. App. 6 (1985) (definitions and scope of apparent authority in settlements)
- Rodebaugh v. Robbins, 180 Ga. App. 338 (1986) (principle of apparent authority in absence of express restrictions)