The facts material to this appeal are basically undisputed. This aсtion was instituted by appellant in July, 1981, for recovery of property damage allegedly accruing from the negligence of appelleе. In May, 1982, after initial discovery, counsel for both parties entered into sеttlement negotiations, which ultimately resulted in an offer from appellеe of $12,000 to settle the entire case, including the subrogated interest of аppellant’s insurer. On the same date, June 4, 1982, appellant’s counsel, who also represented the subrogated interest, informed appellеe’s counsel that he had received both appellant’s and her insurеr’s consent to settle the action for $12,000. Pursuant to this agreement, appellee’s counsel prepared the necessary settlement documents. Three days later, on June 7, 1982, appellant’s counsel contacted appellee’s counsel and advised him that appellаnt “had changed her mind and no longer wanted to settle the case.” A pretrial conference originally scheduled for June 7 had been canсelled in view of the purported settlement.
Appellant has produсed no evidence to dispute the fact that an oral agreement was reached between her attorney and appellee’s attorney or to dispute the terms of that agreement; however, she maintаins that her attorney had no authority to enter into such an agreement. She contends, among other things, that she never approved of the settlеment and that she was “defrauded” as to her attorney’s representation of the subrogated interest of her insurer and as to the nature of that interest. Appellant discharged her attorney and retained new counsel аs a result of the settlement dispute. According to the record on appeal, appellant has not executed the release оr negotiated the check forwarded by appellee’s counsеl.
Appellee moved for summary judgment based upon the oral settlemеnt agreement. The motion was unopposed by appellant’s insurer, represented by appellant’s former counsel, who verified by affidavit thе existence of the agreement and appellant’s approval of it. After a hearing, the transcript of which is not included in the record оn appeal, the trial court granted appellee’s motion.
Aftеr oral argument, we certified the following questions to the Supreme Court for opinion:
1. Is a settlement agreement enforceable by a defendant when it is undisputed that plaintiffs attorney communicated to defendant’s attorney acceptance of a settlement offer but it is subsequently
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dеnied that plaintiff ever consented to the settlement? See OCGA § 15-19-6 (Code Ann. § 9-606);
Kaiser & Bro. v. Hancock,
2. Where there is no “detrimental reliance” on such a settlement agreement by the defendant, is the oral nature of thаt agreement fatal where plaintiff does not dispute the existencе of the agreement but disputes her attorney’s authority to enter into it? See Superior Court Rule 39 (Code Ann. § 24-3339);
General Communications Service v. Ga. Public Service Comm.,
The Supreme Court answered the first question affirmatively and the second question negatively.
Brumbelow v. Northern Propane Gas Co.,
Judgment affirmed.
