Rice v. American Select, Unpublished Decision (5-23-2005)
Rice v. American Select, Unpublished Decision (5-23-2005)
Concurring Opinion
{¶ 22} I agree with the majority's disposition of both of appellant's assignments of error, but disagree with its reason for doing so.
{¶ 23} The majority apparently bases its decision on the fact Galatis effectively eliminated the underlying grounds for appellant's claim against appellee and because Galatis is to be retroactively applied. Unlike the majority, I do not find the issue "moot" because of the intervening Galatis decision. (Maj. Op. at para. 13). I find neither the fact Galatis is an intervening decision nor the fact Galatis applies retroactively is determinative of whether the alleged settlement agreement can be enforced. Although I concede Galatis arguably impacts whether there is adequate consideration on the part of appellant at the time appellant accepted the offer,1 I do not find Galatis, in and of itself, bars appellant from accepting an offer to settle prior to revocation of that offer.
{¶ 24} Nevertheless, I concur in the majority's decision to affirm the trial court's judgment. I do so because I find the trial court's determination the initial offer was materially modified relative to structuring of payment is supported by the evidence.2 I find unpersuasive appellant's argument the offering of a structured settlement is "completely irrelevant." (Appellant's Reply Brief at 6). Appellant confuses mode of payment with manner of payment. The issue is not merely one as to whether payment is to be made in dollar bills or pennies as suggested by appellant, but rather includes issues as to varying amounts and timing of payments.
{¶ 25} Accordingly, I join in affirming the trial court's decisions, but would limit my reason for doing so solely based upon the trial court's finding there was no meeting of the minds on all the material terms of the settlement before revocation of the offer.
Opinion of the Court
{¶ 2} "I. The trial court erred in determining that no contract of settlement was formed between the parties.
{¶ 3} "II. The trial court erred in denying appellant's motion for relief from judgment."
{¶ 4} In 1992, Chrisha Poto was seriously injured in an automobile crash. She was a passenger in a vehicle struck by a semi tractor-trailer. Appellant sought underinsured motorist coverage against the insurance carriers of various employers pursuant to Scott-Pontzer v.Liberty Mutual Insurance Company (1998),
{¶ 5} The parties agree on or about September 22, 2003, appellee extended a settlement offer of $75,000 to resolve all of appellant's claims against appellee. The offer contained no time restraints or additional conditions.
{¶ 6} On November 5, 2003, the Ohio Supreme Court announced its decision in Westfield Insurance v. Galatis (2003),
{¶ 7} Also on November 5, 2005, at approximately 11:15 a.m., appellant accepted appellee's settlement offer via facsimile. The fax requested a draft of the settlement agreement and release to be sent as soon as possible. On November 6, 2003, appellee notified appellant the offer was withdrawn.
{¶ 8} After some exchange between counsel, appellant filed a motion to enforce the settlement agreement. The trial court found there was no meeting of the minds and hence, no contract.
{¶ 9} Appellant then filed a motion for relief from judgment pursuant to Ohio Civ. R. 60 (B). In it, appellant challenged the affidavit of appellee's counsel, which the court had reviewed in making its original decision.
{¶ 11} Appellant denies appellee ever modified its settlement offer by suggesting a structured settlement. Appellant argues the trial court's judgment entry is incorrect in as far as it finds these facts are undisputed, and urges appellees' affidavit is hearsay to the extent it alleges how appellant responded to the offer to structure the settlement.
{¶ 12} As appellee points out, settlement agreements are contractual in nature, and the party asserting the existence of the settlement agreement has the burden of establishing the existence and the terms of the agreement, see Nilavar v. Osborn (1998),
{¶ 13} Here, we are presented with a factual dispute as to whether the settlement offer was modified by a proposal to offer a structured settlement. While the trial court may have been incorrect in finding the facts were undisputed, the court must weigh the evidence regarding any disputed fact, and choose which version to believe. Further, we find the issue is moot, because of the intervening decision of Galatis, supra.
{¶ 14} Appellant concedes the Supreme Court's decision in Galatis was announced prior to her attempt to accept the settlement offer. In overruling Ezawa, Galatis effectively eliminated the basis of appellant's claim against appellee's insurance policy. In addition to finding no meeting of the minds regarding the specific settlement terms, the trial court found any change in law made before acceptance will impact the settlement in this case.
{¶ 15} In Clark v. Bureau of Workers' Compensation (Franklin App. No. 02AP-743), 2003-Ohio-2193, the Tenth District Court of Appeals reviewed a settlement agreement entered into prior to the Supreme Court's decision in Holeton v. Crouse Cartage Company (2001),
{¶ 16} We find at the time appellant attempted to accept this settlement offer, the law in Ohio had changed and the basis for her claim, Esawa, had been overruled. Further, the Ohio Supreme Court has made it very clear its decision in Galatis applies retrospectively, seeIn Re: Uninsured Underinsured Motorist's Coverage Case,
{¶ 17} We find the trial court correctly determined the change in law as set forth in Galatis, supra, effectively destroyed appellant's cause of action brought pursuant to Ezawa, supra. Thus, any attempt to settle the claim after the change in law was ineffective.
{¶ 18} The first assignment of error is overruled.
{¶ 20} The second assignment of error is overruled.
{¶ 21} For the foregoing reasons, the judgments of the Court of Common Pleas of Stark County, Ohio, are affirmed.
Gwin, J., and Boggins, P.J., concur Hoffman, J., concurs separately.
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