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Jones v. Frickey6/21/2005
SMITH, P. J., ELLINGTON and ADAMS, JJ.
After a hearing, the Superior Court of Paulding County granted the motion to enforce a settlement filed by Rocky Frickey in Keith Jones' personal injury action. Jones appeals, contending the trial court erred in concluding there was an enforceable agreement to settle the case. For the following reasons, we reverse.
The following facts are undisputed. On July 4, 2001, Frickey, who carried a $100,000 automobile liability policy with State Farm Insurance Co., caused a collision with Jones' car. Jones sustained catastrophic injuries, resulting in medical expenses well over $100,000. Early in the process of negotiating Jones' claim, State Farm conceded that Frickey was liable to Jones and that the medical expenses from Jones' "horrendous" injuries exceeded the limits of Frickey's policy. A State Farm claim representative communicated to Jones' lawyer its intention to tender the policy limit of $100,000 upon receipt of some documentation of Jones' medical expenses. In letters sent in June and August 2002 and in April 2003, State Farm reiterated its request for documentation of Jones' special damages and restated its intention to settle the claim by tendering the policy limit. In one of those letters, the claim representative stated, "I do not wish to `sit' on your client's money."
With the deadline for filing a complaint on Jones' claim just two weeks away, Jones' lawyer sent State Farm a letter on June 18, 2003, formally demanding the policy limit and, for the first time, providing copies of medical bills totaling more than $100,000. The letter stated that if a written response was not received within five days from the date of the letter then the offer to settle would be "automatically withdrawn according to its terms." State Farm responded in writing, sent by mail and by facsimile, on June 25, 2003, seven days after the date of the letter, agreeing to the demand. State Farm's response stated, we are willing to tender our full policy limits of $100,000.00[.] . . . We stand ready to issue payment upon receipt of the fully executed release enclosed. Obviously, payment is complicated by what appears to be a Grady Hospital lien as well as potential liens by [Jones'] health carrier. Please advise me of the status of these liens.
Jones filed his complaint on June 27, 2003. Ten days later, on July 7, 2003, Jones' lawyer sent State Farm a letter reporting on the status of the liens. On October 9, 2003, Jones' lawyer sent State Farm a letter formally withdrawing the June 18 settlement demand, saying that State Farm has refused to tender the policy limits available without putting certain conditions on the settlement, including suggesting that [Jones] execute a release prior to the receipt of settlement funds, effectively settling all claims against [Frickey]. State Farm has indicated they would not tender the settlement check until all potential lien or claims for reimbursement have been resolved with insurance companies that have provided benefits to [Jones]."
Jones' lawyer concluded, "We feel State Farm has dealt in bad faith." On October 20, 2003, State Farm sent a written offer to settle for the policy limit, conditioned on "the standard hold harmless language as to any ERISA issues or other liens in our release." Receiving no response, on November 18, 2003, State Farm sent a check for $100,000, a general release for Jones to execute, and a draft dismissal with prejudice. Jones' lawyer returned the check and rejected the offer. On December 2, 2003, State Farm again sent a written offer to settle for the policy limit, which Jones refused to accept.
On December 29, 2003, Frickey filed a motion to enforce a set
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