Smith v. Hall
311 Ga. App. 99
| Ga. Ct. App. | 2011Background
- This is an appeal from a trial court’s order enforcing a settlement agreement in a Georgia personal injury case against Roxanne Hall.
- Smith offered to settle for $25,000, the policy limits, in a letter stating the offer would terminate at 4:00 p.m. on July 14, 2010 and that any deviation or delay in acceptance would be an automatic rejection.
- Hall’s counsel, extending the deadline, sent a letter stating acceptance and included a $25,000 check plus proposed release documents, while noting possible Limited Liability Release if other insurance existed.
- Smith’s counsel later returned the check and documents, arguing they were not an acceptance but a rejection and counteroffer.
- The trial court granted enforcement of the settlement; the issue on appeal is whether Hall’s acceptance formed a contract to settle the case.
- The Georgia Court of Appeals held that Hall’s acceptance was valid and rejected Smith’s counteroffer critique, applying Herring v. Dunning and Moreno v. Strickland as controlling authorities.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Hall’s response was an acceptance | Smith argues no acceptance; Hall conditioned on release broader than sole defendant | Hall’s letter unequivocally accepted the demand for settlement | Acceptance found; contract formed |
Key Cases Cited
- Johnson v. Martin, 142 Ga. App. 311, 235 S.E.2d 728 (Ga. App. 1977) (no settlement where release broadens scope of release beyond offer)
- Herring v. Dunning, 213 Ga. App. 695, 446 S.E.2d 199 (Ga. App. 1994) (acceptance can terminate litigation even if release not expressly promised)
- Moreno v. Strickland, 255 Ga. App. 850, 567 S.E.2d 90 (Ga. App. 2002) (release terms may be discussed but are not necessary for acceptance)
- Frickey v. Jones, 274 Ga. App. 398, 618 S.E.2d 29 (Ga. App. 2005) (settlement acceptance can be valid even with later release negotiations)
