Ashden Anderson (formerly Norton) filed suit against her father, Scott Norton, and attorney Billy Jones and Jones’ law firm, Jones, Osteen and Jones (collectively “Jones”), alleging that Norton and
Viewed favorably to Anderson,
Norton and Cantey retained Jones’ law firm to represent the family in their personal injury actions. Under the Retainer Agreements, Jones would be paid 33 1/3 percent of all sums recovered without the filing of a lawsuit, or 40 percent of all sums recovered if suit were filed, plus out-of-pocket expenses. After investigating the case, Jones filed two lawsuits in connection with the accident: one on behalf of Norton and Cantey, as Anderson’s parents and natural guardians, for Anderson’s injuries and one on behalf of Norton for his own injuries. The parties’ attorneys quickly began discussing settlement; an attorney for Del Monte’s insurers agreed that the “real
Days before trial was scheduled to begin in Anderson’s suit, Jones obtained written authority from Norton and Cantey to settle all of the family’s claims as follows: $1.75 million for Anderson’s injuries; $2.5 million for Norton’s injuries; and $300,000 for Cantey’s injuries; for a total of $4.5 million. Jones communicated this demand to Del Monte’s insurers as his “rock bottom” to settle all of the family’s claims, including those asserted in the two pending lawsuits. Jones testified that he had evaluated each family member’s case separately, discussed those values with Norton and Cantey, and then negotiated four separate settlements with Del Monte’s insurers. On February 28, 1997, the defendants accepted,
Norton and Cantey petitioned the Superior Court of Liberty County to approve the $1.75 million settlement for Anderson’s injuries.
On March 31,1997, Norton and Cantey, for themselves individually and as the parents of Anderson and of Jared Norton, executed a “Release of All Claims” arising from the accident, in favor of Del Monte, its employee, and its insurers, and they acknowledged the receipt of “the gross settlement sum” of $4.5 million. The “Release of All Claims” named Del Monte, its employee, and its two insurers as the entities being released and provided that the payment was in full settlement of the two pending lawsuits. Norton and Cantey also executed a “Settlement Agreement and Release” which specified that the $1.75 million settlement for their claims for Anderson’s injuries would be paid as follows: $1 million cash to them as Anderson’s parents and guardians of her property, and $750,000 for the annuity as provided in the probate court’s approval order. This “Settlement Agreement and Release” also named Del Monte, its employee, and its insurers as the entities being released.
A few months after the settlement, Norton filed for divorce from Cantey; he was awarded custody of Anderson. While the divorce was pending, the probate court appointed Thomas Ratcliffe as a guardian ad litem for Anderson. Ratcliffe petitioned for an accounting of the funds from her settlement. In August 2008, the parties reached a settlement to close the accounting proceeding, with Norton and Cantey each agreeing to pay Anderson $3,200. The parties, including Anderson, who had turned 18 on April 8, 2008, executed a document entitled “Consent Order Regarding the Obligations of Lisa Cantey,... Scott M. Norton and Thomas J. Ratcliffe, Guardian Ad Litem.” In that consent order, entered August 5, 2008, Anderson agreed, inter alia, that “Norton and . . . Cantey never knowingly or wrongfully obtained any money from [Anderson’s] annuity[.]” In addition, she agreed that Norton’s “total monetary obligation” to her was $3,200 and that, upon tender of that amount, all of Norton’s financial obligation to her as a result of the accounting proceeding would be fully satisfied.
In April 2012, Anderson filed the instant action, alleging that Norton breached his fiduciary duty as guardian of her interests. In addition, she alleged that Jones breached his fiduciary duty to her and committed legal malpractice in his representation of her. She attached the affidavit of an expert who opined that, once the family’s personal injury claims were settled for a lump sum of $4.5 million,
Case No. A13A0507
1. Anderson contends that the trial court erred in granting summary judgment on her legal malpractice claim against Jones.
In a legal malpractice action, the plaintiff must establish three elements: (1) employment of the defendant attorney, (2) failure of the attorney to exercise ordinary care, skill and diligence, and (3) that such negligence was the proximate cause of damage to the plaintiff. . . . [W]ith respect to the “ordinary care, skill and diligence” element, the law imposes upon persons performing professional services the duty to exercise a reasonable degree of skill and care, as determined by the degree of skill and care ordinarily employed by their respective professions under similar conditions and like surrounding circumstances.
(Citation and punctuation omitted.) Leibel v. Johnson,
(a) Anderson’s malpractice claim is premised, in part, on her contention that Jones negotiated a $4.5 million global settlement with Del Monte’s insurers and then, in concert with Norton, divided the proceeds among the four family members, with Anderson receiving an unfairly small portion, considering her severe and permanent injuries. Anderson contends that Jones had a conflict of interest in representing all four plaintiffs (or potential plaintiffs) in apportioning the settlement, because the family members were then effectively competing against each other for a share of a finite amount of money.
There is no competent evidence in the record, however, to support Anderson’s position that Jones negotiated a lump sum settlement and then allocated the proceeds among the four family members. It is undisputed that Jones negotiated the settlements with attorneys for Del Monte’s insurers. Jones is the only person who participated in those negotiations who provided sworn testimony in this case. As noted earlier, he testified that he had evaluated each family member’s case separately, discussed those values with Norton and Cantey, and negotiated four separate settlements with Del Monte’s insurers.
Even assuming that Jones breached his fiduciary duty in his manner of settling Anderson’s claims, Anderson is unable to recover for legal malpractice because she is unable to show that she was damaged by such breach. There is no evidence that a $1.75 million
(b) In addition, Anderson contends that, because parents are legally obligated to pay for their children’s medical treatment, Jones breached his professional duty to her by not structuring the settlement so that her medical expenses were paid out of Norton’s settlement instead of hers.
As Anderson contends, parents are responsible for medical expenses incurred in the treatment of their minor children. Wilson v. Obstetrics & Gynecology of Atlanta,
In addition, there is no expert opinion evidence that Jones breached a professional duty to Anderson by structuring the settlement so that her medical expenses were paid out of the $1.75 million settlement. See Leibel v. Johnson,
Based on the foregoing, we conclude that the trial court properly granted Jones summary judgment on Anderson’s legal malpractice claim.
2. Anderson contends that the trial court erred in granting summary judgment on her claim against Jones for breach of fiduciary duty. The record shows that the claim duplicated her legal malpractice claim: the duties arose from the same source (that is, the attorney-client relationship), were allegedly breached by the same conduct, and allegedly caused the same damages. We conclude that Jones is entitled to summary judgment for the reasons explained in Division 1, supra. Oehlerich v. Llewellyn,
At the time Norton and Cantey agreed to settle Anderson’s claims, Georgia law provided for the protection of minors through judicial oversight of settlements under former OCGA § 29-2-16 (1997).
Anderson argues that our decision in Zepp v. Toporek authorizes a claim for breach of fiduciary duty against her father, despite former OCGA § 29-2-16 (j). In that case, however, we held that an attorney could not assert the court-approved settlement of the minor plaintiff’s claim as a bar to the plaintiff’s malpractice claim because the attorney was not a party to the judgment approving the settlement, and because the judgment did not approve a settlement between the plaintiff and the attorney.
4. Anderson contends that, even though the petition to compel Norton and Cantey to account for funds from her $1.75 million settlement was resolved when the superior court approved the consent order, the doctrine of collateral estoppel does not bar her claim that Norton breached his fiduciary duty to her in the manner in which he applied those funds.
In Georgia, the collateral estoppel doctrine precludes the re-adjudication of an issue that has previously been litigated and adjudicated on the merits in another action between the same parties or their privies. Like res judicata, collateral*321 estoppel requires the identity of the parties or their privies in both actions. However, unlike res judicata, collateral estoppel does not require identity of the claim — so long as the issue was determined in the previous action and there is identity of the parties, that issue may not be re-litigated, even as part of a different claim.
(Citations and punctuation omitted.) Shields v. BellSouth Advertising & Publishing Corp.,
The final adjudication of the petition for an accounting bars Anderson’s claim against Norton. As noted above, Anderson, as an adult, consented to an order that settled the accounting proceeding and the claim that Norton improperly applied her settlement funds. Based upon the identity of parties and issues, collateral estoppel bars Anderson from relitigating this issue in the guise of a breach of fiduciary duty claim. Shields,
5. Because the trial court did not err in granting the motions for summary judgment filed by Norton and Jones, their cross-appeals, Case Nos. A13A0508 and A13A0509, are dismissed as moot.
Judgment affirmed in Case No. A13A0507. Appeals dismissed as moot in Case Nos. A13A0S08 and A13A0509.
Notes
Norton and Jones also filed motions to dismiss, which the trial court denied. Norton and Jones filed cross-appeals from the denial of their motions to dismiss, Case Nos. A13A0508 and A13A0509, respectively. Because the trial court’s grant of summary judgment was correct, as explained in Divisions 1-4, infra, the cross-appeals in Case Nos. A13A0508 and A13A0509 are moot. See Division 5, infra.
“[T]° prevail on a motion for summary judgment, the moving party must demonstrate that there is no genuine issue of material fact, so that the party is entitled to judgment as a matter of law[.]” (Citations and punctuation omitted.) Cowart v. Widener,
Del Monte’s applicable insurance policies had combined policy limits of $37 million.
The final settlement amounts were as follows: $1.75 million for Anderson’s claims; $2,448 million for Norton’s claims; $300,000 for Cantey’s claims; and $2,000 for Jared Norton’s claim; for a total of $4.5 million.
See Division 3, infra.
See Jackson v. Cavalry Portfolio Svcs.,
Jackson v. Cavalry Portfolio Svcs.,
Anderson’s expert testified that, based solely on the merits of Anderson’s case, it would not he his opinion that $1.75 million was not a fair settlement and that he “would have no basis to say that Mr. Jones committed a legal malpractice in obtaining that settlement,” considering Anderson’s case alone.
See Charles R. Adams, Ga. Law of Torts § 30:1 (2012-2013 ed.); John Bourdeau, 13 Ga. Jur. Personal Injury & Torts § 6:5 (updated June 2013).
Lacking the capacity to sue, an unemancipated minor must he represented by a representative, such as a guardian ad litem or next friend. See OCGA § 9-11-17 (c) (“Whenever an infant or incompetent person has a representative, such as a general guardian, committee, conservator, or other like fiduciary, the representative may bring or defend an action on behalf of the infant or incompetent person.”); Jackson v. Sanders,
See OCGA § 9-11-20 (a) (“All persons may join in one action as plaintiffs if they assert any right to relief jointly, severally, or in the alternative in respect of or arising out of the same transaction, occurrence, or series of transactions or occurrences and if any question of law or fact common to all of them will arise in the action.”).
See OCGA § 29-3-3 (a) (2013) (The term “gross settlement” means “the present value of all amounts paid or to be paid in settlement of the claim, including cash, medical expenses, expenses of litigation, attorney’s fees, and any amounts paid to purchase an annuity or other similar financial arrangement.”); former OCGA § 29-2-16 (k) (1997) (“The term‘net settlement’ shall mean the gross settlement less attorneys’ fees, expenses of litigation, and medical expenses for the ward which will be paid from the settlement proceeds.”).
Former OCGA § 29-2-16 (1997) provided, in pertinent part, as follows:
(a) A guardian is authorized to compromise all contested or doubtful claims for or against the ward he represents and may submit such matters to arbitration. A debtor may be released by the guardian if the release is in the interest of the ward. Furthermore, the guardian may appoint an attorney in fact in the matter, for whose acts the guardian shall be responsible.
(b) If an order of approval is obtained from the judge of the probate court based upon the best interest of the ward, the guardian is authorized to compromise any contested or doubtful claim in favor of the ward he represents without receiving the consideration for such compromise as a lump sum. Without limiting the foregoing, such compromise may be in exchange for an arrangement which defers receipt of part or all of the consideration for the compromise until after the ward reaches majority and may involve a structured settlement or creation of a trust on such terms as the court approves.. . .
(g) If legal action has been initiated through a natural guardian as next friend and a settlement has been proposed under subsection (f) of this Code section and the net settlement amount is $10,000.00 or greater, or where the trial judge otherwise requires a legally qualified guardian, the natural guardian shall apply to become the legally qualified guardian and shall file with the judge of the probate court an initial bond payable to the probate court in an amount set by the trial judge prior to compromising or terminating such claim or receiving any sums paid pursuant to a compromise or judgment.. ..
(i) If legal action has been instituted and the guardian and the defendant in such action have agreed upon a settlement, the settlement must be approved by the judge of the court before whom the action is pending. The guardian shall not be permitted to dismiss the action and present the settlement to the probate court for approval without the approval of the trial judge before whom the action is pending.
(j) Any settlement entered consistent with the provisions of this Code section shall be final and binding upon all parties, including the minor child.
(k) The term “net settlement” shall mean the gross settlement less attorneys’ fees, expenses of litigation, and medical expenses for the ward which will be paid from the settlement proceeds. For purposes of determining whether a settlement must be submitted to a court for approval, the “gross settlement” shall include the present value of amounts received after majority, but for purposes of whether a guardian of the property is necessary, “gross settlement” and “net settlement” shall not include amounts to be received after maj ority. In determining the present value for purposes of this Code section, the present value of any payments to be received in the future by or on behalf of the minor shall be deemed to be the cost paid by or on behalf of the alleged tortfeasor to purchase any annuity or other financial arrangement; and if the alleged tortfeasor or his or her insurer undertakes to make such future payments without purchasing an annuity or other financial arrangement, the present value shall be deemed to be the value in current dollars as calculated in good faith by the alleged tortfeasor or his or her insurer.
See Ga. L. 1995, p. 1171, § 2 (adding subsections (c) through (k), effective July 1, 1995); Ga. L. 2004, p. 161, § 1 (repealing former OCGA § 29-2-16).
City of Atlanta v. City of College Park,
