 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
White v. Allied Mutual Insurance Co.9/21/2001
Appeal from Osage District Court; JAMES J. SMITH, judge.
Reversed and remanded with directions.
This case requires us to decide whether an insurance company is bound to a settlement agreement negotiated on behalf of an injured minor if the company changes its mind about the value of the claim before scheduling a "friendly" hearing intended by both sides to obtain approval of the settlement.
Elizabeth White, 15, was a passenger in a car driven by her boyfriend and owned by her father, Steven, when the car was involved in a single-car accident. She suffered severe and permanent injuries to her right hand. Defendant Allied Mutual Insurance Company (Allied) was the liability carrier on the car.
Allied agreed with Steven to settle Elizabeth's claim for $45,000, subject to approval of the court in a "friendly" hearing, and Allied turned the matter over to counsel to arrange for and conduct the hearing. Allied's counsel made initial contact with Steven about the hearing. Then there was a sudden and lengthy silence.
Several months later, Steven contacted Allied because Allied had neither initiated the hearing nor paid the $45,000. Allied informed Steven that it had decided not to settle after all. Since negotiating with Steven and arriving at the $45,000 settlement amount, it had become aware of legal authority supporting a defense to Elizabeth's claim.
Steven sought specific enforcement of the settlement agreement. The district court granted summary judgment in favor of Allied, finding Steven "had no legal authority to enter into a binding settlement contract on behalf of his minor daughter and, therefore, Allied lawfully withdrew its offer to settle. Without the existence of a settlement contract the plaintiff's breach of contract lawsuit must be dismissed."
The standard of review for a motion for summary judgment is well established and often recited:
"Summary judgment is appropriate when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. K.S.A. 60-256(c). On appeal, we apply the same rules, and where we find reasonable minds could differ as to the conclusions drawn from the evidence, summary judgment must be denied." Jackson v. U.S.D. 259, 268 Kan. 319, 322, 995 P.2d 844 (2000).
A settlement agreement is a type of contract and, therefore, governed by contract law. See Marquis v. State Farm Fire & Cas. Co, 265 Kan. 317, 323-24, 961 P.2d 1213 (1998). To create a contract, the parties involved in making the contract must have the capacity to contract. See Aetna Life & Cas. v. Americas Truckway Systems, Inc., 23 Kan. App. 2d 315, 319, 929 P.2d 807 (1997) (there must be at least two parties to a contract); see also U.S.D. No. 443 v. Kansas State Board of Education, 266 Kan. 75, 88, 966 P.2d 68 (1998) (municipal corporations cannot bind themselves by a contract in a manner that is beyond the scope of their powers).
Steven argues that he and Allied had a binding oral contract. Allied argues that there was no contract because the court never approved the settlement agreement and Steven lacked the capacity or legal authority to enter into an enforceable contract on his own.
Both parties cite Railway Co. v. Lasca, 79 Kan. 311, 99 Pac. 616 (1909). In Lasca, the minor plaintiff was 18 months old when his hands were run over by the wheel of a railroad car. His parents settled his claim against the railway company for $100, and the settlement was approved by the district court. Lat
Page 1 2 3 4 5 Kansas Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|