Richardson v. Locklyn
339 Ga. App. 457
| Ga. Ct. App. | 2016Background
- Locklyn sued Richardson for injuries from a 2012 car collision; medical bills produced totaled $18,927.25 and Locklyn sought damages for medical bills, pain and suffering, and lost wages (no evidence of wages at trial).
- In July 2014 Richardson (defendant) served a written OCGA § 9-11-68 settlement offer for $12,500; Locklyn rejected it.
- At trial Richardson stipulated liability but contested causation and extent of injuries; the jury awarded Locklyn $6,948.25 (the emergency-day medical bills).
- Richardson moved for attorney fees and costs under OCGA § 9-11-68 based on Locklyn’s rejection; Locklyn responded alleging the offer was not made in good faith.
- The trial court denied fees, reasoning the offer was not in good faith because it was below disclosed medical bills and defendant had stipulated liability; Richardson appealed.
- The Court of Appeals vacated and remanded for an evidentiary hearing on fees, holding a hearing is required when the offeree timely contests good faith; remand to determine reasonableness of fees and whether the offer lacked good faith.
Issues
| Issue | Plaintiff's Argument (Locklyn) | Defendant's Argument (Richardson) | Held |
|---|---|---|---|
| Whether a hearing is required before a trial court denies attorney fees under OCGA § 9-11-68(d)(2) | A hearing was not necessary; trial court’s factual decision can be made from the record (dissent) | A hearing is required so offeree can contest good faith and the reasonableness of fees (majority) | Majority: A hearing is required when the offeree timely contests good faith; vacated and remanded for evidentiary hearing |
| Whether Richardson was entitled to fees as a matter of statutory entitlement under OCGA § 9-11-68(b)(1) because the judgment was less than 75% of the offer | N/A (Locklyn sought to avoid fees by proving lack of good faith) | Richardson argued entitlement because verdict < 75% of offer | Court: Richardson was undisputedly entitled under (b)(1) absent a good-faith finding to the contrary; entitlement triggered award subject to hearing on good faith and reasonableness of fees |
| Proper standard for determining "good faith" of an offer under OCGA § 9-11-68(d)(2) | Good faith can be evaluated by objective factors (trial court/dissent) | Offeror’s subjective reasonable belief and objective evidence both relevant; offeree bears burden to prove lack of good faith (majority relying on Florida guidance) | Court: Trial court must consider offeror’s subjective justification along with objective evidence; offeree bears burden to prove absence of good faith; hearing required to resolve facts |
| Allocation of burden to prove absence of good faith | Offeree must show offer lacked good faith | Same | Court: Burden on offeree to prove lack of good faith at the hearing |
Key Cases Cited
- Bell v. Waffle House, 331 Ga. App. 443 (Ga. Ct. App. 2015) (discussing evidentiary hearing needs for fee awards and procedural protections)
- Williams v. Cooper, 280 Ga. 145 (Ga. 2006) (consideration of party and counsel conduct when awarding fees under OCGA § 9-15-14)
- Arrowood Indem. Co. v. Acosta, Inc., 58 So.3d 286 (Fla. Dist. Ct. App. 2011) (good-faith inquiry requires subjective offeror belief plus objective evidence)
- Gawtrey v. Hayward, 50 So.3d 739 (Fla. Dist. Ct. App. 2010) (offeree bears burden to show lack of good faith; objective factors relevant but not dispositive)
- Gurney v. State Farm Mut. Auto., 889 So.2d 97 (Fla. Dist. Ct. App. 2004) (objective evidence like medical records and discovery relevant to good-faith analysis)
- Schapiro v. Rubinson, 784 So.2d 1135 (Fla. Dist. Ct. App. 2001) (requiring hearing on offer-of-judgment good-faith disputes)
- Menchise v. Senterfitt, 532 F.3d 1146 (11th Cir. 2008) (noting a hearing may be necessary if court inclines to deny fees on bad-faith offer)
- Great West Cas. Co. v. Bloomfield, 313 Ga. App. 180 (Ga. Ct. App. 2011) (trial court’s factual discretion in assessing reasonableness and good faith of offers)