Condon v. Condon
Condon v. Condon
Opinion of the Court
¶1 In open court, appellant Vanessa Condon
FACTS AND PROCEDURAL HISTORY
¶2 On August 24, 1996, Fely Condon was driving with her daughter, Vanessa Condon, when they were struck by another vehicle. Vanessa was ejected from her mother’s car and sustained several injuries, including a concussion, a damaged tooth, and cuts and contusions. Vanessa was entitled to coverage by Farmers Insurance Company of Washington under an underinsured motorist (UIM) policy, which provided for arbitration of disputes. Her claim was arbitrated. The award of $108,000 was confirmed and judgment entered on February 10, 2011 in King County.
¶3 Vanessa also instituted an action in Kitsap Superior Court against Fely in 2005. The parties settled before trial. In open court on March 29, 2011, the parties agreed that
¶4 On March 30, 2011, prior to the dismissal, Fely’s counsel sent Vanessa’s counsel a receipt and release of claims form to sign. On April 1, 2011, Vanessa notified Fely that she would not sign the release. Fely then moved to enforce the settlement and compel Vanessa to sign the receipt and release. Vanessa objected to the motion, arguing that the release was never part of the settlement and that the stipulated order of dismissal with prejudice ended all litigation. She also asked for CR 11 sanctions against Fely. Fely argued that the separate release was a common practice in settlements and that she would not have entered into the agreement had she been aware that Vanessa did not intend to sign the release.
¶5 At the April 22, 2011 hearing on the motion, the trial court asked Vanessa’s attorney whether she objected to a particular part of the release or rather the “concept” of a release. Verbatim Report of Proceedings (VRP) (Apr. 22, 2011) at 5.
¶6 Her attorney replied that Vanessa had not agreed to any release. Referencing an unpublished case from California, El-Fadly v. Northridge Park Townhome Owners Ass’n, No. B172684, 2005 WL 1503857, 2005 Cal. App. Unpub. LEXIS 5498 (Cal. Ct. App. June 27,2005) (unpublished), the trial court ruled that the settlement would stand and that the settlement check would not be released until a release was signed. The parties were ordered to create a “customary and usual release.” VRP at 9.
¶7 At a subsequent hearing, the trial court heard the parties’ arguments on the release language provided by
ANALYSIS
¶8 Citing RAP 2.5(b), Fely contends that Vanessa waived her right to appeal because she received the benefit of the settlement when she cashed the $100,000 check. See Buckley v. Snapper Power Equip. Co., 61 Wn. App. 932, 941-42, 813 P.2d 125 (1991). RAP 2.5(b)(l)(iii) allows a party to accept the benefits of a trial court decision without losing the right to appeal under only four circumstances, including “if, regardless of the result of the review based solely on the issues raised by the party accepting benefits, the party will be entitled to at least the benefits of the trial court decision.” “The purpose of RAP 2.5(b) is to ensure that a party seeking review will be able to make restitution if a decision is reversed or modified on appeal.” Scott v. Cascade Structures, 100 Wn.2d 537, 541, 673 P.2d 179 (1983) (citing RAP 2.5(b)(2) cmt., 86 Wn.2d 1151 (1976)). In this case, even if the settlement was vacated, Vanessa would be entitled to the $100,000 through the King County UIM arbitration. We find no waiver on these facts.
¶9 Next, Vanessa argues that the trial court lacked jurisdiction to enforce a settlement following dismissal of
No agreement or consent between parties or attorneys in respect to the proceedings in a cause, the purport of which is disputed, will be regarded by the court unless the same shall have been made and assented to in open court on the record, or entered in the minutes, or unless the evidence thereof shall be in writing and subscribed by the attorneys denying the same.
CR 2A. The purpose of CR 2A is to give certainty and finality to settlements. Eddleman v. McGhan, 45 Wn.2d 430, 432, 275 P.2d 729 (1954) (discussing the predecessor of CR 2A, which used identical language).
¶10 Where the CR 2A requirements are met, a motion to enforce a settlement is a commonly accepted practice. See Ferree, 71 Wn. App. at 45 (trial court did not err when it enforced a settlement agreement); Brinkerhoff v. Campbell, 99 Wn. App. 692, 697, 994 P.2d 911 (2000) (determining a trial court abuses its discretion when it enforces a settlement without holding an evidentiary hearing when there are disputed issues of fact); Howard v. Dimaggio, 70 Wn. App. 734, 739, 855 P.2d 335 (1993) (trial court improperly enforced settlement where agreement prior to settlement was not reached on hold harmless and release documents); Kwiatkowski v. Drews, 142 Wn. App. 463, 479, 176 P.3d 510 (2008) (“We review a trial court’s order enforcing a settlement agreement de novo.”).
Ill The premise of Vanessa’s argument is that a dismissal with prejudice ends all litigation, thus removing the court’s jurisdiction. Vanessa cites Cork Insulation Sales Co. v. Torgeson, 54 Wn. App. 702, 705, 775 P.2d 970 (1989), as support for her position. In Cork, the Court of Appeals held that the trial court lacked jurisdiction to enter a judgment awarding terms against the defendant in connection with a
¶12 Although enforcement of a settlement is different from an award of attorney fees or costs provided by a contract or statute, there are similar concerns regarding subjecting courts to separate actions to enforce the very settlements upon which the dismissals are based. For instance, the United States Supreme Court considered a similar issue as it pertained to district courts retaining ancillary jurisdiction over a settlement. Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 380-81, 114 S. Ct. 1673, 128 L. Ed. 2d 391 (1994). There, the Court said that ancillary jurisdiction could exist following dismissal of a settlement in order to protect its proceedings and vindicate its authority
*159 if the parties’ obligation to comply with the terms of the settlement agreement had been made part of the order of dismissal — either by separate provision (such as a provision “retaining jurisdiction” over the settlement agreement) or by incorporating the terms of the settlement agreement in the order. In that event, a breach of the agreement would be a violation of the order, and ancillary jurisdiction to enforce the agreement would therefore exist.
Id. at 381. In the absence of ancillary jurisdiction, the court held that enforcement of the settlement could proceed only in state court. Id. at 382. Although Kokkonen does not address a state trial court’s jurisdiction, it does provide some guidance.
¶13 Several states have also grappled with this question, including Florida, California, and Illinois. In Florida, the supreme court in Paulucci v. General Dynamics Corp., 842 So. 2d 797, 803 (Fla. 2003), considered whether a court has jurisdiction to enforce a settlement agreement where the court has either incorporated the agreement into a final judgment or approved of the agreement by order and retained jurisdiction to enforce the terms. Paulucci affirmatively held that a court does have jurisdiction under those circumstances but noted that the extent of the court’s continuing jurisdiction was circumscribed by the terms of the agreement. Id.
¶14 Similarly, California amended its code in 1993 to permit the court to retain jurisdiction to enforce a settlement following dismissal, upon the parties’ request.
¶15 There is also authority in Illinois that grants a trial court jurisdiction to enforce a settlement following dismissal. Dir. of Ins. v. A&A Midwest Rebuilders, Inc., 383 Ill. App. 3d 721, 725, 891 N.E.2d 500, 322 Ill. Dec. 485 (2008). The Court of Appeals in A&A concluded that because the trial court expressly made the dismissal contingent on the terms of the settlement agreement and, most compellingly, because the court stated it retained jurisdiction, the trial court had jurisdiction to enforce the settlement. Id. It also noted that “a court retains the inherent authority to enforce its own orders.” Id. at 723 (citing County of Cook v. Ill. Fraternal Order of Police Labor Council, 358 Ill. App. 3d 667, 671, 832 N.E.2d 395, 295 Ill. Dec. 244 (2005)). Florida, California, and Illinois all appear to agree that a court can enforce a settlement following dismissal where it has expressly retained jurisdiction at the time of settlement.
¶16 Within Washington, several counties have enacted court rules addressing this issue. In King County, parties who have reached a settlement fully resolving all claims can delay dismissal for the purpose of enforcing a settlement agreement. King County Local R. 41(e)(3). Pierce County also acknowledges that enforcement may delay dismissal in Pierce County Superior Court Local Civil Rule (PCLR) 41(e)(4). There, if the parties have reached an agreement and file a stipulation with the court, and the execution of the settlement will take more than 90 days, an order of dismissal by the court under PCLR 41(e)(3) is waived.
¶17 Guidance can also be found within secondary sources. Washington Practice suggests that a party wishing to en
¶18 Here, the trial court acted informally to enforce the settlement. The best practice would have been for the court, at the time of the settlement, to expressly retain jurisdiction for purposes of enforcement or to enter a conditional or delayed dismissal. Since that did not occur, the parties could have moved to vacate the original dismissal under appropriate grounds and then made a motion to reinstate and enforce or commenced a new action for breach of the settlement. Assuming, however, that the process that the trial court followed was adequate, we nevertheless find the court improperly implied additional terms into the agreement, as discussed below.
¶19 The trial court follows summary judgment procedures when a moving party relies on affidavits or declarations to show that a settlement agreement is not genuinely disputed.
¶20 Settlements are considered under the common law of contracts. Ferree, 71 Wn. App. at 39 (CR 2A acts as a supplement to, but does not supplant, the common law of contracts in settlements). Washington follows the objective manifestation theory of contracts, which has us determine the intent of the parties based on the objective manifestations of the agreement, rather than any unexpressed subjective intent of the parties. Hearst Commc’ns, Inc. v. Seattle Times Co., 154 Wn.2d 493, 503, 115 P.3d 262 (2005). “It is the duty of the court to declare the meaning of what is written, and not what was intended to be written.” J.W. Seavey Hop Corp. v. Pollock, 20 Wn.2d 337, 349, 147 P.2d 310 (1944). Determining the intent of the parties is paramount in settlements. See, e.g., Evans & Son, Inc. v. City of Yakima, 136 Wn. App. 471, 479, 149 P.3d 691 (2006) (holding that there was a genuine issue of material fact over whether the parties agreed on all material terms); see also Nationwide Mut. Fire Ins. Co. v. Watson, 120 Wn.2d 178, 190, 840 P.2d 851 (1992) (considering whether there was mutual mistake by the parties). However, “the subjective intent of the parties is generally irrelevant if the intent can
¶21 Applying the principles of contract law to this settlement agreement, we conclude that the trial court erred by enforcing terms that were not implied within the agreement. Here, there is no indication in the record or transcripts that the release agreement was intended by the parties. Instead, the record suggests that the settlement consisted entirely of Fely’s payment to Vanessa and dismissal of the dispute, which is sufficient consideration for an enforceable settlement. See Rogich v. Dressel, 45 Wn.2d 829, 843, 278 P.2d 367 (1954) (stating that in a settlement, consideration takes the form of payment and release of claims, acting as an accord and satisfaction); Nationwide, 120 Wn.2d at 195 (“A good faith settlement of a dispute has been held to be sufficient consideration for a compromise to settle that claim.”). We cannot read the release proposed by Fely into this otherwise valid settlement agreement when there is no evidence that the parties intended such terms.
¶22 The trial court concluded the release was implied by incorrectly interpreting an unpublished opinion from Cali
¶23 Although the trial court improperly implied Fely’s proposed release into the agreement, its inclination to believe the parties intended a general release was correct because a dismissal with prejudice has the effect of limiting future claims. However, the release the court deemed signed went far beyond the scope of a release that is achieved through a dismissal with prejudice. For instance, the release stated:
The undersigned, in consideration of FARMERS INSURANCE COMPANY tendering the settlement check directly to releasor’s attorney, without naming lien holders as payees, further hereby covenants to defend, to indemnify, and hold harmless FARMERS INSURANCE COMPANY, its attorneys, agents, employees and assigns from and against all such lien and subrogation claims, including all costs and attorney’s fees incurred in the defense of such claims.
Clerk’s Papers at 70. Yet there is no evidence from the record that these terms were contemplated by the parties. When Vanessa agreed to dismiss her claims she released Fely only as to those claims; she did not agree to indemnify or hold Farmers harmless as to any other claims.
¶25 Both parties are seeking sanctions and attorney fees. Fely is requesting sanctions against Vanessa for citing to unpublished authority and citing to matters outside the record. In Vanessa’s motion for discretionary review, she cited to an unpublished case, Thurston v. Godsil, No. 48959-3-1, 2003 WL 21690529, 2003 Wash. App. LEXIS 1549 (Wash. Ct. App. July 21, 2003) (unpublished), in violation of GR 14.1(a).
¶27 Nor will we impose sanctions against Fely, as Vanessa requests. Vanessa argues that we should sanction Fely for bringing a claim that is not well grounded in fact or warranted by existing law under CR 11(a). This is not the type of meritless appeal that requires sanctions. See Bryant v. Joseph Tree, Inc., 119 Wn.2d 210, 219, 829 P.2d 1099 (1992) (stating that “[t]he purpose behind CR 11 is to deter baseless filings and to curb abuses of the judicial system,” but “the rule is not intended to chill an attorney’s enthusiasm or creativity in pursuing factual or legal theories”).
¶28 Fely is requesting attorney fees under RAP 18.1, contending that Vanessa’s appeal was not based on law and facts and that the criteria for direct review are not satisfied. Since this court accepted review, Fely is not entitled to attorney fees.
¶29 Vanessa also is not entitled to attorney fees under Olympic Steamship Co. v. Centennial Insurance Co., 117 Wn.2d 37, 53-54, 811 P.2d 673 (1991). In Colorado
CONCLUSION
¶30 We hold that Vanessa Condon did not waive her right to appeal by taking the settlement check. Additionally, we hold that the trial court erred when it implied and enforced additional terms that were not agreed to by the parties. We reverse the trial court. Sanctions and attorney fees will not be imposed.
For clarity, the parties will be referred to by their first names.
Commissioner Steven Goff ruled that “[t]he notice for discretionary review shall be given the same effect as a notice of appeal.” Ruling, Condon v. Condon, No. 86130-7, at 4 (Wash. Oct. 25, 2011).
“If parties to pending litigation stipulate, in a writing signed by the parties outside the presence of the court or orally before the court, for settlement of the case, or part thereof, the court, upon motion, may enter judgment pursuant to the terms of the settlement. If requested by the parties, the court may retain jurisdiction over the parties to enforce the settlement until performance in full of the terms of the settlement.” Cal. Civ. Peoc. § 664.6.
Although the Court of Appeals has used an abuse of discretion standard in the past when reviewing the enforcement of a settlement agreement, its more recent
GR 14.1(a) states that “[a] party may not cite as an authority an unpublished opinion of the Court of Appeals. Unpublished opinions of the Court of Appeals are those opinions not published in the Washington Appellate Reports.”
Although Pely claims in her brief that the Woodall court sanctioned the party making the improper citation, this is inaccurate. The court said only that the superior court relied heavily upon an unpublished opinion and stated the aforementioned rule that unpublished opinions should not be relied upon. Woodall, 104 Wn. App. at 536 n.11.
Reference
- Full Case Name
- Vanessa Condon v. Fely Condon
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- 66 cases
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- Published