REPPY v. Winters
351 S.W.3d 717
Mo. Ct. App.2011Background
- Reppy was seriously injured in a head-on collision on August 12, 2006.
- Reppy's counsel sent a March 16, 2007 letter to Farmers proposing settlement for the policy limits with a release and affidavits, valid for 90 days.
- Winters's counsel responded June 12, 2007 accepting the settlement but added a condition that Reppy indemnify for any medical liens.
- Reppy replied June 14, 2007 declining indemnification and stating acceptance did not include such an obligation.
- Winters's counsel notified a medical lien of $96,489.94 on June 22, 2007 and sought lien satisfaction guidance.
- Reppy filed suit on July 16, 2007; Winters moved to dismiss and enforce settlement in February 2008; trial court granted in February 2009; Reppy appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did a settlement exist with June 12 acceptance? | Reppy argues June 12 acceptance was not mirror-image and added terms, so no contract. | Winters argues June 12 acceptance formed a binding settlement within policy limits. | No enforceable settlement; acceptance added new terms. |
| Did indemnification term defeat mutual assent? | Indemnification was not part of the offer and cannot be implied; it prevents a meeting of the minds. | Indemnification issue was a standard condition affecting settlement viability. | Term not present in offer; constitutes a counter-offer, defeating mutual assent. |
Key Cases Cited
- Murphy v. Carron, 536 S.W.2d 30 (Mo. banc 1976) (standard for appellate review of factual sufficiency in trial-court judgments)
- Ste. Genevieve Cnty. Levee Dist. #2 v. Luhr Bros., Inc., 288 S.W.3d 779 (Mo.App. E.D.2009) (contract formation requires offer, acceptance, and consideration)
- Emerick v. Mut. Benefit Life Ins. Co., 756 S.W.2d 513 (Mo. banc 1988) (determines essential terms for contract settlement)
- Pride v. Lewis, 179 S.W.3d 375 (Mo.App. W.D.2005) (mirror-image acceptance required; new terms create counter-offer)
- Arrowhead Contracting, Inc. v. M.H. Washington, L.L.C., 243 S.W.3d 532 (Mo.App. W.D.2008) (negotiations on terms do not equal contract)
- J.H. v. Brown, 331 S.W.3d 692 (Mo.App. W.D.2011) (clear and convincing standard for settlement existence in court-tried cases)