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Geery v. Travelers Insurance Company2/13/2003
less shown such fact on an uncontroverted basis. Rather it argues that the facts admitted by the claimant demonstrate he "ratified" the agreement. It says:
. . . Petitioner was notified via U.S. mail about the settlement agreement and the stipulation. See Respt.'s Br., p. 6. As already explained, Petitioner ratified the settlement agreement by allowing the stipulation to be filed, cashing the settlement check and accepting the benefits of the negotiated settlement. . . .
Travelers' characterization of the facts is inaccurate. First, claimant was only "copied" with a letter that was from his counsel to the Court. The letter stated that the stipulation was being enclosed and provided "a complete resolution of all issues pending in the Petition for Hearing in this Matter." It did not indicate that the stipulation was sent to claimant and claimant's affidavit contains an implicit denial that he saw the stipulation prior to entry of judgment. It also did not inform claimant of the nature of the resolution. From all that appears in the letter, the stipulation could have been nothing more than an acknowledgment of liability for benefits alleged in the petition. Such stipulations have been filed and approved by the Court.
Second, Travelers has presented no evidence that claimant signed the settlement check. While it is likely that he did, it is also likely that, in light of the express provision for the 20% attorney fee to be taken from the settlement proceeds, the check was jointly payable to him and his attorney thus claimant may well have signed without understanding the terms and nature of the stipulation or payment.
Third, there is no showing that claimant accepted the settlement proceeds with the knowledge that the agreement finally settled his entire entitlement to compensation benefits. According to his affidavit, he was told by his attorney that he would be receiving additional benefits.
Ratification requires proof of three elements. The three elements are:
"(1) acceptance by the principal of the benefits of the agent's acts,
"(2) with full knowledge of the facts and,
"(3) circumstances or an affirmative election indicating an intention to adopt the unauthorized arrangement."
Moore v. Adolph, 242 Mont. 221, 223, 789 P.2d 1239, 1241 (1990) (emphasis added). Travelers has failed to prove as an uncontroverted matter that claimant had "full knowledge of the facts."
Travelers has therefore failed to establish as a matter of law that the claimant either authorized his attorney to enter into the stipulated settlement or that he ratified the settlement.
The more troublesome issue involves res judicata. "The doctrine of res judicata states that a final judgment on the merits by a court of competent jurisdiction is conclusive as to causes of action or issues thereby litigated, as to the parties and their privies, in all other actions in the same or any other judicial tribunal of concurrent jurisdiction." Hollister v. Forsythe, 277 Mont. 23, 27, 918 P.2d 665, 667 (1996). Thus, unless set aside, the prior judgment bars all claims for compensation except as to future medical expenses.
While not artfully pleaded, the petition attacks not only the validity of the settlement agreement but the validity of the Court's entry of judgment pursuant to the stipulation. I construe the petition as requesting the Court to set aside or nullify the judgment. However, neither party has addressed the Court's authority to do so. Rule 60 of the Montana Rules of Civil Procedure sets out the grounds and procedure for setting aside a district court judgment. This Court has
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