364 Ga. App. 364
Ga. Ct. App.2022Background
- Jan. 12, 2020 motorcycle collision: Novas struck by Ronda Bennett while she made a left turn; Novas suffered serious injuries.
- Progressive Mountain Insurance insured John Bennett (named insured); Ronda Bennett was listed as a driver under the policy.
- June 4, 2020: Novas sent a settlement demand under OCGA § 9-11-67.1 seeking the $25,000 policy limit in exchange for a limited liability release naming only Ronda Bennett and Progressive, and conditioned on an affidavit that no other policies covered the wreck.
- Progressive responded asking whether John F. Bennett could also be named on the limited liability release (using the word "clarify").
- Progressive later mailed a purported acceptance with a $25,000 check and an affidavit; Novas returned the check and sued, asserting the insurer’s earlier request was a counteroffer. Bennett moved to enforce the settlement; the trial court denied the motion, finding a counteroffer, and the Court of Appeals affirmed.
Issues
| Issue | Plaintiff's Argument (Novas) | Defendant's Argument (Bennett/Progressive) | Held |
|---|---|---|---|
| Whether Progressive's request to add John Bennett was a permissible clarification under OCGA § 9-11-67.1(d) or a counteroffer | The request varied an essential term (who would be released) and therefore was a counteroffer | The insurer merely sought clarification about the release and did not change the offer's terms | Court: It was a counteroffer, not a mere clarification; no meeting of the minds |
| Whether Progressive's later mailing of a check constituted a binding acceptance despite its earlier counteroffer | Novas: the earlier counteroffer terminated Progressive’s power to accept; later payment could not revive the original offer absent renewal | Bennett: later "acceptance" and payment within the offer period created a binding settlement | Court: Counteroffer terminated the offer; later acceptance without renewal was ineffective, so no binding agreement |
Key Cases Cited
- Yim v. Carr, 349 Ga. App. 892 (2019) (insurer’s inquiry about including additional insureds in a release treated as negotiation/counteroffer)
- Herring v. Dunning, 213 Ga. App. 695 (1994) (an acceptance that attempts to release parties other than the named offeree is a counteroffer)
- Pritchard v. Mendoza, 357 Ga. App. 283 (2020) (a purported acceptance that varies even one term is a counteroffer)
- Duval & Co. v. Malcom, 233 Ga. 784 (1975) (a counteroffer rejects the original offer and terminates the offeree’s power of acceptance)
- Sherman v. Dickey, 322 Ga. App. 228 (2013) (requests that merely confirm prior assertions can be reasonable clarifications and not counteroffers)
- Wright v. Nelson, 358 Ga. App. 871 (2021) (contract formation requires objective meeting of the minds on essential terms)