THI RD DI VI SI ON

M C FA DDEN, C. J.

, D OYLE, P. J.

, and HODGES, J.

N O T IC E : M otions for r e c ons i de r a tion m us t be

ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n

da y s of the da te of de c is ion to be de e m ed tim e ly file d.

https ://w w w

. ga a ppe a ls .us /r ule s

D E A D LIN E S A R E N O LO N G E R TO LLE D IN T

H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

.

M ar ch 11, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A1 86 8 . W RIGHT v . NELSON. DO-0 6 4

D O Y LE , Pres i d i n g J u d g e.

J o h n Nel s o n fi l ed t hi s p ers o n al in ju r y s u i t ag ai n st Ho ward W ri g ht an d t h ree

J o h n Do es

, s eek i n g d am ag es fo r i n ju ri es al l eg ed l y cau s ed b y W ri g h t i n an au t o m o b i l e

co l l i s i o n

. W ri g h t no w a p p eal s fro m t h e t ri al co urt ’ s d en i al o f h is m o t i on t o en fo rce

a s et t l em en t ag reem en t

, co n t en d i n g t h at t h e tri al co u rt erred b y ru l i n g t hat h e d i d n ot

accep t Nel s o n ’ s o ffer o f set t lem en t d em an d i n g t h e i n s u ran ce p ol i cy li m i t i n ex ch an g e

fo r a l i m it ed l i ab il i t y rel eas e co n t ai n i n g cert ai n t erm s s p eci fi ed b y N e l s o n.

Sp eci fi cal l y

, W ri g h t arg u es th at h e accep t ed t h e o ffer o f s et tl em en t wh en he t en d ered

t h e req u es t ed p o l i cy li m it an d i n d i cat ed h i s i n ten t t o fo l l o w u p wi t h a rel eas e, t h ereb y

ren d eri n g t h e part ies ’ s u b s eq u en t fai l u re t o ex ecu te t h e rel eas e a m at t er o f co n t ra c t

p erfo rm an ce, n o t co nt ract fo rm at i o n . W e ag ree an d rev ers e.W e ap p ly a d e n o v o s t an d ard o f rev i ew t o a t ri al co u rt ’ s o rd er o n

a m o t io n t o en fo rc e a set t l em en t ag reem en t

. Becau s e t h e is s u es rai s ed

are an al og o u s t o th os e i n a m o t i o n fo r s u m m ary ju dg m en t

, in o rd er t o

s u cceed o n a m o t i o n t o en fo rce a s e t t l em en t ag reem en t

, a p art y m u s t

s h o w t h e co u rt t h at t h e d o cu m en t s

, aff i d a v i ts

, dep o s i t i o n s an d o t h er

ev i d en ce i n t h e reco rd rev eal t h at t h ere i s no ev i d en ce s u ffi ci en t t o

creat e a ju ry i s su e o n at l eas t o n e es s en t i al el em en t o f t h e ap pel l an t [‘ s ]

cas e. Th u s

, we v iew t h e ev i d en ce i n a l i g h t m o s t fav o rab le t o th e

n o n m o v i n g p art y

. 1

So v iewed

, t he reco rd s h o ws t h at on Ap ri l 1 8

, 2 0 19

, Nel s o n fi l ed a co m p l ai nt

s eek i n g dam ag es fro m W ri g h t an d th ree J o hn Do e d efen dan t s b as ed o n a car co l l i s i o n

i n v o l v i n g N e l s o n a n d W ri gh t

. Th e s am e d ay

, N el s on ’ s at t o rn ey s en t an o ffer o f

s et t l em en t v ia fax an d cert i fi ed m ai l t o W ri g h t ’ s i n s u ran ce ca rri er, Al l s t at e M et ro

M CO, o f f eri n g “ to set t le Mr. Nel s o n ’ s cl ai m fo r

. . . $ 25 ,0 0 0

. ” T he o ffer l et t er

req u es t ed Al l s tat e to “ i m

m ed iat el y n o t i fy y o u r i n s ured t h at i t i s p res en t l y p os s i b l e to

s et t l e t h e cl ai m s t h at m

y cl ien t h as ag ai n s t h i m wi t h i n th e l i m i t s o f av ai l ab l e i n s u ran ce

co v erag e” an d s t at ed t h at t h e o ffer wo u l d rem ai n o p en fo r accep t an ce u n t i l M ay 2 8,

2 0 1 9 , aft er wh i ch t i m e i t wo u l d b e d eem ed au t o m at i cal l y wi t hd rawn

.

1 (Pu n ct u at i o n o m i t t ed

. ) Ti l l ma n v. Mej a b i

, 33 1 G a. Ap p

. 4 1 5 (7 7 1 SE2 d 1 1 0 )

(2 0 1 5), q u o t i n g Jo h n s o n v. DeKa l b Co u n t y

, 3 1 4 Ga. Ap p

. 7 9 0

, 7 9 1 (7 2 6 SE2 d 1 0 2 )

(2 0 1 2).

2In ex ch an ge fo r accep t i n g t h e $ 2 5 ,0 0 0 p o l i cy l i m i t

, t h e l et t er st at ed t hat Nel so n

wo u l d “ s i g n a ‘ Li m i t ed Li ab i l i t y Rel eas e’ as t h at t erm i s u s ed an d co n tem p l at ed u n d er

Geo rg i a law.” Th e l et t er c o n t ai n ed ex p l ici t co n d i t io n s up o n wh i ch t h e o ffer was

co n ti n g en t :

(1 ) m

y cl i en t w i l l o n l y rel eas e an d di s ch arg e Ho ward W ri g ht

,

A l l s t at e M et ro M CO, i n cl u d i n g i t s ag en t s

, em p l o y ees an d t h e l i k e,

p u rs uan t t o a l i m i t ed l i ab i l i t y rel eas e;

(2 ) m y cl ien t wi l l e x e c u t e a l i m i t ed l i ab i l i t y rel eas e an d o n l y

rel eas e an d d i s ch arg e t h e ab o v e n am ed i n d i v i d ual an d Al ls t at e M et ro

M CO Po l i cy No

. 8 0 3 1 7 0 7 5 9

, an d n o -o n e el s e, fro m an y cl ai m s

,

d em an d s

, ri gh t s an d cau s es o f act io n fo r i n ju ry as a res u l t o f t h i s l o s s

—

m ean i n g al l cl ai m s fo r u n d eri n s u red m o t o ri s t co v erag e, ex ces s co v erag e

o r u m b rel l a co v erag e, t o t h e ex t en t an y s u ch cl ai m s ex i s t

, are n o t

rel eas ed ;

( 3 ) m y cl i en t wi l l o n l y ag ree t o pro v id e an i n d em n i fi cat i o n fo r

“ l eg al l y en fo rceab le” l ien s as s ert ed b y an y h os p it al

, n u rs i n g h o m e,

p h y s i ci an p ract i ce o r trau m at i c bu rn care m ed i cal p ract i ce wh o i s s u b ject

t o t h e [Ho s p i t al Li en St at u t e] ;

(4 ) m y cl i en t wi l l o n l y ag re e t o p ro v i d e an i nd em n i fi cat i o n fo r

“ l eg al l y en fo rceab l e” l i en s a s s e rt ed b y an y g o vern m en t al ag en cy s u ch

as M ed i cai d , M ed i care, Ch am p u s , Tri -Care o r t h e l i k e;

3(5 ) m y cl i en t wi l l n o t ag ree t o affi rm o r warran t to p ay an y l ien s

,

ri gh ts o f rei m

b u rs em en t o r s u b ro g at i o n b ecau s e h e h as no t b een m ad e

wh o le;

(6 ) m y c l i e n t wi l l n o t wai ve an y ri g h t s d i s cu s sed i n Po s ev v.

Med i ca l Cen t er W

es t

, In c

., 2 5 7 Ga. 5 5 (3 5 4 SE2 d 4 1 7 ) (1 9 8 7 ) as t h i s i s

co n t rary t o t h e l aw es t ab l i s h ed b y Po s ey ;

(7 ) m y cl i en t wi l l n o t ag ree t o an y l an g u ag e i nd i cat i n g t h a t [h e]

h as b een co u n s el ed o r en co urag ed t o ei t h e r r e v i ew o r t o ex ecu t e an y

rel eas e as t h i s reci t at io n wo u l d i n t ro d u ce a co n fl i ct o f i n t eres t ;

(8 ) t he u n d ers ig n ed w i l l o n l y wi t n es s t h e e x e c u t ed rel eas e an d

wi l l n o t s u p p l y a reci t a l p u rp o rt i n g t o rat i fy

, ap p ro v e, ex p l ai n o r

g u aran t ee s i gn at u re o f s ai d rel eas e as t h is reci t at i o n wo u l d i n t ro d u ce a

co n fl i ct o f i n teres t ;

(9 ) m y cl i en t wi l l o n l y ex ecu t e an affi d av it v eri fy i n g h i s

k n o wl ed g e o f an y “ p ro p erl y fi led ” l i en s as s ert ed b y a n y h o s p i t al

,

n u rs in g ho m e, ph y s i ci an p ract i ce o r t rau m at i c bu rn care m ed i c a l pr a c tic e

wh o i s s u bject t o t h e p ro v i s i o n s o f OCGA § 4 4 -1 4 -4 70

.

On M ay 1 5

, 2 0 1 9

, an Al l s t at e rep res en t at i ve s en t a l et t er s t at i ng “ Al l s t at e h as

ag reed t o p ay o u r po l i cy li m it s o f $ 2 5 ,0 0 0

. W e w i l l h av e o n e o f o u r d efen s e at t o rn ey s

co n tact y o u ab ou t t he rel eas e.” A week l at er, o n M ay 2 2 , Nel s o n ’ s at t o rn ey

wro t e a

4l et t er co n fi rm i ng recei pt o f t h e ch eck an d s t at i n g, “ Yo u i n d i cat ed t h at Al l s t at e w i l l

h av e a defen s e at t o rn ey co n t act m e ab o ut a Rel eas e. I h av e n o t h eard fro m an y o n e o n

t h i s i s s u e an d d o n o t h av e a Rel eas e. Can y o u p leas e fo l lo w u p ? ” Recei v i n g n o

i m m ed i at e res p o n s e, Nel s on ’ s at t o rn ey sen t ad d i t i o n a l r e que s t s fo r t he rel eas e o n M ay

3 0

, J u ne 5

, an d J u n e 1 3. On J u n e 1 7

, A l l st at e’ s at t orn e y s e n t an em ai l wi t h an

at t ach ed rel eas e (“ Al l s t at e Rel eas e”), s tat i n g

, “ Pl eas e fi nd Al l s t at e’ s p ro p o s ed LLR

at t ach ed t o t hi s em ai l. A hard co p y i s b ei n g m ai l ed t o y o u t o d a y

. I f t h i s m eet s wi th

y o u r ap pro v al

, p l e a s e h a v e yo u r cl i en t s i g n i t an d ret urn th e o ri g i n al t o m e.”

Ap p ro x i m at el y t wo week s l at er, o n J u l y 3

, W ri g h t ’ s at to rn ey

fi l ed an an s wer t o t h e

co m p l ai n t al o n g wi t h a co u nt ercl ai m

.

On J u l y 2 1 , Nel s o n ’ s at to rn ey

s en t a l et t er t o Al l s t at e st at in g t h at t h e Al l s t at e

Rel eas e “ v ari es cert ai n m at eri al t erm s an d co n s t i t u tes a reject i on / co un t ero ffer.” Th e

l et t er i d en t ifi ed t h e al l eg ed i n co n s i s t en t t erm s

, i n cl u d i n g : rel eas i n g Al l s t at e Fi re an d

Cas ual ty In s u ran ce Co m

p an y “ i n it s en t i r et y ” (as o p p o s ed t o o n l y Al l s tat e M et ro

M CO), ad d i n g a rel eas e of p ro p ert y d am ag e n o t i n cl u ded i n th e s et t l em en t o ffer, an d

ad d in g an affi rm at i o n t h at th ere are n o un p ai d l ien s or cl ai m s fo r b en efi t s “ o f an y

k i n d ” (n o t ju st l eg al l y

en fo rceab l e h os p i t al l i en s).

5On Sep t em b er 2 6

, Al l s tat e’ s at t o rn ey rep l i ed b y em ai l

, p u rp o rt in g t o at t ach an

ed i t ed v ers i o n wi t h rev i s i o n s pert i n en t t o t h e fi rs t t wo i s s u es an d ad d res si n g t h e t h i rd

i s su e b y p o i n t i n g o u t t h at t he rel eas e o f Al l st at e was t o t h e ex t en t o f i t s li ab i l i t y fo r

i t s i n s u red

, b u t n o t to t he ex t en t o f an y un i n s u red / u n d eri n s ured m o t o ri s t co v erag e o r

o t h er in s u ran ce. Des p i t e t hi s d es cri p t i o n i n t h e em ai l

, t h e at t ach e d r e l eas e was

i d en t i cal t o t h e fi rs t v ers i on Al l s t at e s en t , ap paren t l y i n cl ud ed b y

m i st ak e.

In Oct o b er 2 0 19

, W ri gh t ’ s at t o r n ey fi led a m o t i o n t o en fo rce t h e set t l em en t

ag reem en t

. Nel s o n o p p o sed t h e m ot i o n

, an d f oll owi n g a h eari n g

, t he t ri al co urt d en i ed

t h e m o t i o n , g i v i n g ri s e t o t h i s ap p eal

.

W ri g h t co n t en d s th at th e t r i a l c o u rt erred b y ru l in g t hat Al l s t at e’ s M ay 1 5

res p o n s e was n o t an u neq u i v o cal accep t an ce o f Nel s o n ’ s o ffer t o s et t l e t h e cas e fo r

t h e p o li cy l i m i ts . W e ag ree.

Un d er Geo rg i a l aw, an ag reem en t al l eg ed t o b e i n s et t l em en t an d

co m p ro m is e o f a pe n d i n g l aws u i t m u s t m eet t h e s am e req u is it es o f

fo rm at i o n an d en fo rceab i l i t y as an y o t her co n t ract

. In t h i s r e g a r d

, i t i s

wel l s et t l ed t h at an ag reem en t b et ween t wo p art ies wi l l o ccu r on l y wh en

t h e m i n d s o f t h e p art i es m eet at t h e s am e t i m e, u p o n th e s am e s u b ject

m at t er, an d i n t h e s am e sen s e. An an s wer t o an offer wi l l no t am o u n t t o

an accep t an ce, s o as t o res u l t i n a co n t ract

, u n l es s i t i s u nco nd i t i o nal an d

6i d en ti cal wi t h t h e t erm s o f t h e o ffer. T o co n s t i t u t e a co n t r a ct

, t he o ffer

m u s t b e acc e p t ed u n eq u i v o cal l y an d wi t h ou t v ari an ce o f an y so rt

. No

co n t ract ex i s t s u n t i l al l e s s e n t i a l t erm s h av e b een ag reed t o

, an d th e

fai l u re t o ag ree to ev en o n e es s en t i al t erm m ean s t h ere i s no ag reem en t

t o b e en fo rced

. In d et erm i ni n g i f p art i es h ad th e m u t u a l as s en t o r

m eet i ng o f t h e m i n d s n eces s a r y t o r e ach ag reem en t

, co u rt s ap p l y an

o b ject i v e th eo ry o f in t en t wh ereb y o n e p art y ’ s i nt en t io n is d eem ed t o be

t h at m ean i n g a reas o nab l e p ers o n i n t h e p o s it io n o f t h e o t h er co n t ract i n g

p art y wo u l d as cri be t o t h e fi rs t p art y ’ s m an i fes t at i on s o f as s en t

. 2

Here, i t i s u n d i sp u t ed t h at Nel s on o ffered to s et t l e t h e cas e fo r $ 2 5 ,0 0 0 in

ex ch an g e fo r a l i m i t ed l i ab il i ty rel eas e m eet i n g cert ai n s p eci fi ed co n d i t io n s o u t l i n ed

i n hi s Ap ri l 1 8 l et t er to Al l s t at e. Th e o ffer referen ced OGGA § 9 -1 1-6 7 .1 an d

i n cl u d ed t h e es sen ti al t erm s co n t em p l at ed by t h at Co d e sect i o n : t i m e peri o d o f

accep t an ce, am o u n t of p ay m en t

, a rel eas e req ui rem en t

, t h e t yp e o f rel eas e, an d t h e

cl ai m s t o b e rel eas ed

. Al ls t at e t i m el y res p o n d ed t h at it “ ag reed t o p ay o u r p o l i cy

l i m i ts o f $ 2 5 ,0 0 0 ,” l is t ed t h e cl ai m n u m b er an d i n s u red

, t en d ered t he ch ec k

, a n d

s t at ed t h at i t wo u l d h av e i t s at t o rn ey co nt act Nel s o n ’ s at t o rn ey ab o ut t h e rel eas e.

A l l s t at e’ s res p o n se d i d n o t ad d an y co n d i t i on s t o it s ag reem en t t o p ay t h e p o l i c y

l i m i ts , n o r d i d i t i nd i cat e an y o b ject i o n t o t h e rel eas e t erm s req u es t ed b y Nel s o n

.

2 (Ci t at i on s an d p u n ct u at i o n o m i t t ed .) Y i m v. Ca r r

, 3 4 9 G a. Ap p

. 8 92

, 9 0 3 -9 0 4

(2 ) (8 27 SE2 d 6 85 ) (2 0 1 9 ).

7Un d er t hes e ci rcu m s tan ces

, th e p art i es h ad reach ed an en fo rceab l e set t l em en t

ag reem en t : “ A n o f

fer m ay b e accep t ed

. . . ei t h er b y a p ro m is e t o d o t h e t h i n g

co n tem p l at ed t h erei n

, or b y t he act u al d o i ng o f t h e t h i n g

. ” 3 Al l s t at e p ai d t h e $ 2 5 ,0 0 0

an d i n di cat ed i t s i n t en t t o b eg in t h e p ro ces s o f ex ecu ti n g a rel eas e.

Fro m t h at m om en t o n

, t h e p r es en tat i o n o f a p ro p er rel eas e in a fo rm

accep t ab l e t o p l ai n t iff m ay hav e been a co nd i t i o n o f [Al l s t at e’ s ]

p erfo rm an ce b ut [ab s en t an ex p l i ci t req u i rem en t fro m Nel s o n, Al l s t at e’ s

act u al t en d er of an accep tab l e rel eas e] was n o t an act neces s ary t o

accep t an ce o f [Nel s o n’ s ] o ffer t o s et t l e fo r t he po l i cy l i m it s

. M o reo v er,

s i nce t h e ag reem en t t o t erm i n at e t h e co n tro v ers y al read y h ad b een

creat ed

, [Al l s t at e’ s] s u bs eq u en t p ro ffer o f a rel eas e fo rm wh ich [Nel s o n ]

b el i ev ed w as n o t i n co m

p l i an ce w i th t h e u n d e rs t an di n g o f t h e p art i es

[was ] n o t . . . a reject io n o f t h e p rev i o us l y accep ted o ffer. 4

Th i s i s tru e p art icu l arl y i n l ig h t o f th e l an g u ag e acco m p an y i n g Al l s t at e’ s fi rs t

p ro p os ed rel eas e: “

If t h i s m eet

s wi t h yo u r a

p p r o va l , p l eas e h av e y o u r cl ien t s i g n

. . .

3 (Pu n ct u at i o n o m it t ed .) Her r i n g v. Du nn i ng

, 2 1 3 Ga. Ap p

. 6 9 5

, 69 9 (4 4 6 SE2 d

1 9 9 ) ( 1 9 9 4 ), q u o ti n g S

h ef f i el d v. W h i t f i el d

, 6 Ga. Ap p. 76 2

, 7 6 4 (2 ) (6 5 SE 8 0 7 )

(1 9 1 4). See al so Ba r n es v

. M a r t i n

- P r i ce

, 3 5 3 Ga. Ap p

. 6 2 1

, 6 2 6 (8 3 8 SE2 d 9 1 6 )

(2 0 2 0) (“ It i s wel l es t ab l i s h ed t h at t h e d el i very an d accep t an ce o f a ch eck s t at i n g o n

i t s face t h at i t co ns t it u t es fi n al s et t l em en t o f a cl ai m

, wh et her t h e am o un t of t h e cl ai m

i s es t ab l is h ed o r u n cert ai n

, am o u n t t o an acco rd an d sat i sfact i o n wh ich d i s ch arg es t h e

cl ai m .”) (p u n ct u at i o n o m i t t ed ), q uo t i n g Ra b en s t ei n v. Ca n ni z o

, 2 4 4 G a. A p p

. 1 0 7

(5 3 4 SE2 d 8 4 7 ) (2 0 0 0 ).

4 Her r i n g , 2 1 3 Ga. Ap p. at 6 9 9-7 0 0

.

8.” 5 An o b

j e c t i v e l y reas o n ab l e p ers o n wo u l d u n d ers t an d b y t h i s p recat o ry l an g u ag e

t h at Al l s tat e was s eek i n g Nel s o n ’ s ap p ro val

, n o t o b j ect i n g t o t h e t erm s o f t he o ffered

rel eas e ag reem en t

. 6 Th e s u b seq u en t co rres p o n d en ce fu rt h er i n d i cat es t hat Al l s t at e

at t em p t ed t o cap t u re N el s o n’ s s p eci fi ed rel eas e t erm s i n a r e vi s ed d raft

, ev en i f t h e

o ri g i nal d raft was erro n eo u sl y s u b s t i t u t ed fo r t he rev i sed v ers i o n.

Becau s e t h e u n d i sp u ted reco rd s h o w s t h at Al l s t at e accep t ed Nel s o n ’ s

s et t l em en t o ff

e r

, t h e t ri al co u rt erred b y d en y i n g W ri g h t ’ s m o ti o n t o en fo rce t h e

s et t l em en t ag reem en t acco rd i n g t o t h o s e t erm s

.

Ju d g men t r ever sed

. Ho d g es

, J., co n cu r

s

. McFa d d en

, C. J., co ncu rs f

u l l y a n d

s p eci a l l y.

5 (Em p h as i s s u p pl i ed .)

6 “ Precat o ry wo rd s are t h o s e wo rd s t h at i n di cat e ‘ en treat y

, reco m m en d at i o n

, o r

ex p ect at i o n rat h er t h an an y m an d at o ry d i rect i o n .’ ” Newt o n v. Ra g l a nd

, 3 2 5 Ga. Ap p.

3 7 1 , 3 7 4 (1 ) (7 5 0 SE2 d 7 68 ) (2 0 1 3 ), q u o t i n g Her r i n g , 2 1 3 Ga. Ap p . at 6 9 9

.

9A2 0 A1 86 8 . W RIGHT v . NELSON.

M C F A D D E N , Ch i ef J u d g e, co n cu rri n g fu l l y an d s p eci al l y

.

I co n cu r fu l l y i n t he m ajo ri t y op i n i o n

. Th e m ajo r i t y c o rrect l y ho l ds t h at a

s et t l em en t ag reem en t w as fo rm ed b ecau s e t h e pl ai n t i ff’ s s et tl em en t o ffer d i d n ot

s p eci fy t h at p res en t at i o n o f a co n fo rm i n g rel eas e was a p reco n di t i o n t o accep t an ce o f

t h e o ffer. Bu t t he o ffer co u l d h av e s o s p eci fi ed ; an d if i t h ad s o s p eci fi ed

, n o

s et t l em en t ag reem en t wo u l d h av e fo rm ed

.

I w ri t e s ep arat el y t o ad d res s t h e on g o i n g effo rt s o f t h e co u rt s an d t h e Gen eral

As s em b l y t o ad d res s t h e u n in t en d ed co n s eq u en ces o f ou r Su p rem e Co u rt ’ s d eci s i o n

i n S o u t her n Gen

. In s

. Co

. v. Ho l t

, 26 2 G a. 26 7 (4 16 SE2 d 2 7 4 ) (1 9 9 2 ). I s ug g es t t h att h e Gen eral As s em b ly m ay w an t t o co n s i d er an ad d i t io n al l eg i s l at i v e rem ed y

. Th e

h o l d i n g i n Ho l t i s : “ an i n su red h as a cl ai m fo r b ad fai th ag ai n s t an in s u ran ce co m p an y

fo r i ts fai l u re t o s et t l e a c l a i m w i t h i n t h e p o l i cy li m i ts bas ed o n a t i m e-l i m i t ed

s et t l em en t o ffer b y t h e i nju red p ers o n ’ s at t orn ey .” Id

.

Ho l t ex p res s l y d i s av o w s an y “ i n t en [t ] t o l a y d o w n a ru l e o f l aw t h at wo u ld

m ean t h at a p l ai n t i ff’ s at t o rn ey . . . co u ld ‘ s et u p ’ an i n su rer fo r an ex ces s ju d g m en t

m erel y b y o fferi n g t o s et t l e wi t h i n t h e p o l icy l i m i ts an d b y i m po s i ng an u n reas o n ab l y

s h o rt t im e wi t h i n wh i ch t he o ffer wo u l d rem ai n o p en .” Ho l t , 2 6 2 Ga. at 1 6 9 (1 ). So

Ho l t im p l i ci t l y d i s av o ws an y i n t en t t o en ab l e a pl ai nt i ff’ s at t o rn ey t o s et u p an i n s u rer

b y an y o th er d ev i ce.

Bu t p l ai n t i ffs ’ at t o rn ey s h av e i n cen t i v es co n t rary t o t h at ju di ci al i n t en t

. It h as

b eco m e cl ear t h at

, t o a p l ai n ti ff wh o s e i nju ri es great ly ex ceed t h e av ai l ab l e co v erag e,

a p ol i cy -l i m i t s s et t l em en t c an be l es s v al u ab l e t h an a reject ed o ffer an d co n s eq u en t

b ad -fai t h cl a im

— h o wev er d u b i o us th e cl ai m

. In t h e co n t ex t o f p ro ceed i n g s to

en fo rce p u rp ort ed s e t t l em en t s

, p l ai n t i ffs s o m et i m es s t ru ct ure offers n o t t o reach

s e t t l em en t s

, b u t rat h er t o el i ci t reject i on s

. See g en eral l y Do u g l as R. Ri ch m o n d

, A n

Ov erv i ew o f In s u ran ce Bad Fai t h Law an d Li t i g at i o n

, 2 5 Set o n Hal l L. R. 7 4

, 1 3 1

(VI) (B) (1 9 9 4 ) (n o t i n g p o t en t i al o f a t h ird -p art y i n s uran ce cl ai m an t “ t r[y i n g ] t o ‘ s et

2u p ’ a b ad fai t h cl ai m b y way o f s h arp p ract i ce”). An d o u r d eci s i o n t o d a y p r o v i d e s

i n s t ru ct i o n o n h o w o ffers can b e s t ru ct u red t o av oi d t o day ’ s res u l t an d s et u p b ad fai th

cl ai m s

.

I h av e ex pres s ed co ncern i n t h e p as t t h at s u ch t act i cs h av e tem p t e d u s

, i n

s et t l em en t en fo rcem en t act i o n s

, t o i m p ro perl y ab ri d g e t h e fu n d am en t al ru l e t h at “ o n e

wh o m ak es an o ffer i s m as t er o f t h e o ffer. A p u rp o rt ed accep t an ce th at fai l s t o m eet

ev ery co n d i t i o n of an o ffer

— ho wev er u n reas o nab l e t h e co n d i t i o n

— i s a

co u nt ero ffer an d d o es n o t creat e a co n t ract .” Ha ns en v. Do an

, 3 2 0 Ga. Ap p

. 6 0 9

, 6 1 9

(7 4 0 SE2 d 3 3 8 ) (2 0 1 3 ) (M cFad d en , J ., d i s s en ti n g ).

Sel ect i v el y ab ri d g i n g th at fu n d am en tal ru le i s

, h o wev er, pro p erl y wi t h i n t h e

au t h o r i t y o f t h e l eg i s lat u re. An d t h e day aft er Ha ns en was d eci d ed

, t h e Gen eral

A s s e m b l y p as s ed OCGA § 9 -1 1-6 7 .1

, wh i ch is s et o u t i n t h e m arg i n

. 1 As

1 (a ) Pri o r t o t h e fi l i ng o f a ci v i l act i o n, an y o ffer t o set t le a t o rt cl ai m fo r

p ers o n al i n

ju ry

, b od i l y i nju ry

, o r deat h a r i s i n g fro m t h e u s e o f a m ot or v eh i cl e an d

p rep ared b y o r wi th t h e as s i s t an ce o f an y at to rn ey o n b eh al f o f a cl ai m an t o r cl ai m an t s

s h al l b e i n wri ti n g an d co n t ai n t h e fo l l o w i n g m at eri al t erm s :

(1 ) Th e t i m e p eri o d wi t h i n wh i ch s u ch o ffer m u s t b e accep t ed

, wh i ch

s h al l b e n ot l es s t h an 3 0 d ay s fro m recei p t o f t h e o ffer;

(2 ) Am o u n t o f m o n et ary

p ay m en t ;

(3 ) Th e p art y o r p art i e s t h e cl ai m an t o r cl ai m an ts wi l l rel eas e i f s u ch

o ffer i s accep t ed ;

(4 ) Th e t y p e o f rel eas e, i f an y

, t he cl ai m an t o r cl ai m an t s wi l l p ro v i d e to

each rel eas ee; an d

3au t h o ri t at i v el y co n st ru ed i n a d i v i d ed o p i ni o n o f o u r Su prem e Co u rt

, t h a t s t at u t e

s el ect i v el y ab ri d g es o ffero rs ’ m as t ery o f o ffers t o s et t l e cert ai n t o rt cas es

— b u t t o a

(5 ) Th e cl ai m s t o b e rel eas ed

. (b ) Th e reci p ien t s o f an o ffer t o s et tl e m ad e u n d er t h i s Co d e sect io n m ay accep t

t h e s am e b y p ro v i d in g wri t t en accep t an ce o f t h e m at eri al t erm s o u t l in ed i n s u b s ect i o n

(a) o f t h i s Co d e s ect i o n i n t h ei r en t i ret y

. (c) No th i n g i n t h i s Co d e s ect i o n i s i n ten d ed t o p ro h i b i t p art ies fro m reach i n g

a s et t l em en t a g reem en t i n a m an n er an d u nd er t erm s o t h erwi s e ag reeab le t o t h e

p art i es

. (d ) Up o n recei p t o f an o ffer t o s et t le s et f o r t h i n s u b s ect i o n (a) o f t h i s Co d e

s ect i on

, t h e reci pi en t s s h al l hav e t h e ri g h t t o s eek cl ari fi cat io n reg ard i n g t erm s

, l i en s

,

s u b ro g at i o n cl ai m s

, st an d i n g to rel eas e cl ai m s

, m ed i cal b i l l s

, m e d i cal reco rd s

, an d

o t h er rel ev an t fact s

. An at t em p t t o s eek reas o n ab l e cl ari fi cat i o n s h al l n o t b e d eem ed

a co u nt ero ffer.

(e) An offer t o set tl e m ad e p u rs u an t t o t h i s Co d e s ect i o n sh a l l b e s e n t by

cert ifi ed m ai l o r s t at u t o r y o v ern i gh t d el i v ery

, ret u rn recei p t req u es t ed

, an d s h al l

s p eci fi cal l y

referen ce t h i s Co d e s ect i o n

. (f) Th e p ers o n o r en t i t y p ro v i d i n g p ay m en t t o s at i s fy t h e m at eri al t erm s et fo rt h

i n p arag rap h (2 ) o f s u b s ect i o n (a) o f t h i s Co d e s ect i o n m ay el ect t o pro v id e p ay m en t

b y an y o ne o r m o re o f t h e fo ll o wi n g m ean s :

(1 ) Cas h ;

(2 ) M o n ey

o rd er;

(3 ) W i re t ran s fer;

(4 ) A cas h i er’ s ch eck i s s u ed b y a b an k o r o t her fi n an ci al i n st i tu t i o n ;

(5 ) A d raft o r b an k ch eck i s s u ed b y an i n s u ran ce co m

p an y ; o r

(6 ) El ect ro n i c fu n d s t ran s fer o r o th er m et h o d o f el ect ro n ic p ay m en t

. (g ) No t h i ng i n t h i s Co d e s ect i o n s h al l p ro hi b it a p art y m ak i n g an o ffer t o s et t l e

fro m req u i ri n g p ay m en t w it hi n a s p eci fi ed p eri o d ; p ro v id e d

, h owev er, t h at s u ch

p eri o d s h al l n o t b e l es s t h an t en d ay s aft er th e w ri t t en accep t an ce o f t h e o ffer t o s et t l e.

(h ) Th i s Co d e s ect i o n s h al l ap p l y t o cau ses o f act i o n fo r p ers o n al i nju ry

, b o d i l y

i n ju ry , an d d eat h ari s in g fro m t h e u s e o f a m o t o r v eh i cl e o n o r aft er J u ly 1 , 2 0 1 3

.

4l i m i ted ex t en t

. See Gr an g e M u t

. Ca s

. Co

. v. W

o o d ar d

, 3 0 0 Ga. 8 48 (7 9 7 SE2 d 8 1 4 )

(2 0 1 7).

Gr a n g e co n s tru ed OCGA § 9 -1 1 -6 7.1 i n l ig h t o f “ t h e b ack d ro p o f a l arg e b o dy

o f law” u n d er w h ich an accep t an ce i s effect i v e o n l y i f “ t h e o f f e r [i s ] accep t ed

u n eq ui v o cal l y an d wi t h o u t vari an ce o f an y s o rt ” b ecau s e “ an offero r is t he m as t er o f

h i s o r h er o ffer, an d free t o s et t h e term s t h ereo f.” Gr a n g e

, 3 0 0 Ga. at 8 5 2 -8 5 3 (2 ) (a)

(ci t at i o n s an d p u n ct u at i o n o m i t t ed ). Gr a n g e “ co n cl u de[d ] th at t h e p l ai n l an g u ag e o f

OCGA § 9 -1 1 -6 7.1 d o es n o t ex p res s l y o r b y n eces s ary i m p l i cat io n co n t rav en e t h es e

co m m o n l aw p ri nci p l es .” Id . at 8 5 4 (2 ) (b ).

S o a s au t h o ri t at i v el y co n s t ru ed in G r a n g e

, s u b s ect i o n (a) o f OCGA § 9 -1 1- 67. 1

req u i res t h at f

i v e s p eci fi ed m at eri al t erm s “ s h a l l ” b e in cl u d ed in an o ffer an d b e in

wri t i ng

, an d s ub s ect i o n (b ) p ro v i d es t h at at l eas t t h o s e fi v e m at eri al t erm s m u s t b e

accep t ed i n wri t in g

. Bu t t h at accep t an ce d o es n ot fo rm a s et t l em en t ag reem en t i f t h e

o ffer i n cl u d es ad d i t i o nal t erm s an d t h e reci p i en t o f t he o ffer d o es n ot accep t t h o s e

ad d it i o n al t erm s

. Gr a n g e

, 3 0 0 Ga. at 8 5 5– 8 5 6

.

Gr a n g e reject ed a b ro a d er i n terp ret at i o n. Un der t h at reject ed i n t erp ret at i o n,

s u b s ect i o n (b ) en d ows t h e reci p i en t o f an o ffer wi t h a p o wer, b ey o n d t h at p ro v i d ed

b y t h e co m

m o n l aw, t o fo rm a se t t l em en t ag reem en t

. Th e t ex t o f s u b s ect i o n (b )

5p ro v id es t h at t h e reci p ien t o f an o ffer co n fo rm i n g t o s u b s ect i o n (a) “ ma y accep t t h e

s am e b y pro v i d i n g wri t t en accep t an ce o f t h e m at eri al t erm s o u t l i n ed i n s u b s ect i o n (a)

o f t h i s Co d e s ect i o n i n t h ei r en t i ret y [.] ” OCGA § 9 -1 1 -6 7 .1 (b ) (em p h as is s u p p l i ed ).

Un d er t h at reject ed i n t erp ret at i o n

, s u ch accep tan ce wo u l d fo rm a set t l em en t

ag reem en t

— reg ard les s of an y ad d i ti o n al t erm s th e o ffero r u nd ert o o k t o i n c l u de.

Gr a ng e , 3 0 0 Ga. at 8 55 -8 5 6 (2 ) (b ).

Su b s ect i o n (c), u n d e r t h i s reject ed i n t erp ret at i on

, wo u l d s i m p l y cl ari fy t h at

s u b s ect i o n s (a) an d (b ) co m e i nt o p l ay o n l y i f t h e p a rt i es d i s ag ree ab ou t w h et h er a

s et t l em en t ag reem en t h ad b een reach ed

. See G r a n g e

, 30 0 Ga. at 8 5 1 (1 ), 8 5 5 (2 ) (b );

s ee al so Gr a n g e at 8 61 (M el to n, P.J ., d is s en t i n g ).

Su b se c tion ( d )

, G ran g e affi rm s

, al l ows reci p i en t s t o s eek cl ari fi cat i o n o f o ffers

.

Offero rs are p recl u d ed fro m d ecl ari n g req u es ts fo r cl ari fi cat i o n t o be co u nt ero ffers

.

Gr a ng e , 3 0 0 Ga. at 8 57 (2 ) (b ).

Gr a n g e d o es n ot co ns t ru e s u bs ect i o n (e), w h i ch s p eci fi es h o w an o ffer m ay b e

t ran s m i t t ed an d req u i res t h at o ffers ci t e t h e s t at u t e. No r d oes Gr an g e co n s t r u e

s u b s ect i o n (f), wh i ch m a n d a t es t hat cert ai n sp eci fi ed fo rm s o f p ay m en t s b e

accep t ab l e.

6Su b s ect i o n (g ) p ro v i d es t h at an o ffer m ay n o t im po s e a p a ym en t d ead l i n e o f

l es s t h an 1 0 d ay s aft er accep tan ce o f t h e o ffer. Bu t Gr an g e h o ld s , o v er d i s s en t , t h at

m eet i n g t h e p ay m en t d ead l in e m ay b e a preco n d i t i o n o f accep t an ce. Gr a n ge

, 3 0 0 Ga.

at 8 5 7 (2 ) (b ) & n . 8

.

So as au t h o ri tat i v el y co n s t ru ed i n Gr a n g e

, OCGA § 9 -1 1 -6 7

. 1 rem o v es s o m e

o f t h e m as t ery of o ffero rs o v e r t h e i r o ffers

, b u t o n l y s o m e. As a co n s eq uen ce, t h e

s t at u te p rev en t s s om e, b ut o n l y s o m e, o f t h e t act i cs u s ed to s e t u p i n s urers fo r b ad

fai t h cl ai m s

.

Bu t t h e m

u ch g reat er ab ri d g em en t of fre e d o m o f co n t ract en t ai l ed i n t h e

reject ed i n t erp ret at i o n s of s u b s ect i o n s (a), (b ), an d (g ), s u m m ari zed ab o v e, wo u ld

h av e p rev en t ed m an y m o re o f t h o s e t act i cs an d m i g h t ev en h av e p u t an en d t o s u ch

m an eu v eri n g

.

Gr a n g e d oes no t i n di cat e t h at t h e Gen eral As s em b l y i s wi t h ou t po wer t o

i m p o s e a g reat er ab ri d g m en t

. It s h o l d i n g res t s o n a p ri n ci p l e o f s t a t u t o ry

i n t erp ret at io n un d e r wh i ch “ co m m o n -l aw ru l es [rem ai n ] o f fo rce an d effect i n t h i s

St at e, ex cep t wh ere t h ey h av e b e e n c h a n g e d b y ex p res s s t at u t o ry en act m en t o r by

n eces s ary i m

p l i cat i o n .” Gr a n g e , 3 00 at 8 5 4 (2 ) (b ) (ci t i n g Hu m p h reys v. St a t e

, 2 8 7

7Ga. 6 3

, 7 0 (4 ) (6 9 4 SE2 d 3 1 6 ) (2 0 1 0 )). 2 So i f i t i s th e wi l l o f t h e Gen eral As s em b l y

t o en act t h o s e reject e d i n t e rp ret at i o n s o f s u b s ect i o n s (a), (b ), an d (g )

— an d to

ab ri d g e freed o m o f co n t rac t t o t h at ex t en t

— i t can ap paren t l y d o s o b y “ ex p res s l y

2 In s et t i ng o u t t h at p ri n ci p l e o f s t at ut o ry co ns t ru ct i o n

, Gr a n g e d o es n ot ad d res s

t h e p ri n ci p l e set o u t at OCGA § 1 -3 -1 (a): “ In al l i n t erp ret at i on s of s tat u tes

, t h e co u rt s

s h al l lo o k d i l i g en t l y fo r t h e in t en t i on o f t h e Gen eral As s em bl y

, k eep in g i n v i ew at al l

t i m es t h e o l d l aw, t h e ev i l , an d t h e rem ed y .”

So m et i m es cal l ed t he m i s ch i ef ru l e, t h e ru l e n o w s et o u t at OCGA § 1-3 -1 (a)

ap p ears i n t h e s eco n d vo l u m e o f Geo rg i a Rep o rt s

, w h ere t h e au t h o ri t y ci t ed fo r i t i s

Bl ack s to n e’ s Co m

m en tari es o n t h e Law o f En g lan d

. Bo o t h v. W i l l i ams

, 2 Ga. 2 5 2,

2 5 4 (1 84 7 ) (ci t i ng 1 Bl ack

. Co m

. 8 7 ). O u r Su p rem e Co u rt “ reg ard s Bl ack s to n e as an

au t h o ri t y o n t h e co m

m o n l aw.” Gr a n g e

, 30 0 Ga. at 8 5 3 (2 ) (a) (q u ot i ng Tu cker v.

H o w a r d L. Ca r mi ch a el & S o n s

, 2 0 8 Ga. 20 1

, 2 03 (1 ) (6 5 SE2 d 9 0 9 ) (1 95 1 ) )

. B u t

i n s t ead o f ad d res si n g OCGA § 1 -3 -1 (a) o r t h e m i sch i ef ru l e

, G r a n g e c i t es

, i n a

fo o t n o t e, t o recen t d eci s io ns i m p l i ci t ly cri t i ci zi n g i t

. See G r an g e

, s u pra at 8 5 7 (2 ) (b )

n . 8

. Ap p ly i n g t h at ru l e h ere m i g h t hav e l ed t o a d i fferen t o u t co m e. Th e o l d l aw i s

t h e co m m o n l aw o f co n t ract fo rm at io n

— t h at th e o ffero r i s m as t er o f t h e o ffer,

t o g et h er w i t h t h e ru l e s et o u t i n Ho l t

, u n d er wh i ch an i n s u rer can b e s u bject t o b a d

fai t h li ab i l i t y

. Th e ev i l o r m i s ch i ef i s th e i n cen t iv e c r e at ed b y th e i n t eract i o n o f t h o s e t wo

ru l es t o s et u p b ad f

a i t h c l ai m s

. See Gr a n g e

, 30 0 Ga. at 85 6 -8 5 7 (2 ) (b ) (“ In

u n d ers t an d i n g t h e wo rk t h at OCGA § 9 -1 1-6 7 .1 p erfo rm s

, i t i s h el p fu l t o recal l t h e

l eg al en v i ro n m en t in wh i ch i t was e n act ed

. O ur 1 99 2 d eci s io n o n an i n s u rer’ s d u t y

t o i t s in s u red wh en faced wi t h a s et t l em en t d em an d, S o u th er n Gen er a l In s u r a n ce Co

. v. Ho l t , 2 6 2 Ga. 2 6 7 , 2 6 8 (1 ) (4 1 6 SE2 d 2 7 4 ) (1 9 9 2 ), s p awn ed m u ch l i t i g at i o n [.]

. .

. OCGA § 9-1 1 -6 7 .1 s p eak s t o t h o se i s s u es .”) (fo o t n ot e o m i t t ed ); i d

. at 8 5 7 (2 ) (b ) n.

4 (“ Al t h o u g h t h i s cas e d o es no t cal l o n u s t o co n s i d er wh et h er G ran ge act ed i n b ad

fai t h

, Geo rg ia cas e l aw on i n su rers ’ d u t i es t o t h ei r in s u red

, s p eci fi cal l y o u r d eci s i o n

i n Ho lt , l o o m s i n t h e b ack g ro u n d .”).

Th e rem ed y i s s o m e am o u n t o f ab ri d gem en t o f freed o m o f co n t ract an d o f an

o ffero r’ s au t h o ri t y

o v er t h e o ffer.

8co n trav en [i n g ] t h o s e co m m o n l aw p ri n ci p l es .” G r a n g e

, s u p ra at 8 56 (2 ) (b ); s ee al s o

i d . at 8 5 2 -8 5 3 (2 ) (a).

Al t ern at i v el y

, t h e Gen eral A s s em b l y co u l d fo cu s o n t h e b ad fai t h cl ai m s

t h em s el v es

. It co u l d ad d res s t h e i s s ue b y s et t i n g o u t a s afe h arb o r, s peci fy i n g co n d u ct

b y i n s u rers t h at wo ul d co n s t i tu t e g o o d fai t h as a m at t er o f l aw.

9