Court Opinion

ID: 9962338
Source: CourtListenerOpinion
Date Created: 2024-04-23 15:19:27.526465+00
Date Added: 2024-06-11T08:20:27.138698
License: Public Domain

COURT OF APPEALS OF VIRGINIA

              Present: Judges O’Brien, Fulton and Callins
UNPUBLISHED

              Argued at Richmond, Virginia

              JAMES WESLEY JOPLIN, SR.
                                                                             MEMORANDUM OPINION* BY
              v.     Record No. 1642-22-2                                   JUDGE MARY GRACE O’BRIEN
                                                                                   APRIL 23, 2024
              TERAE BRENZELL HARRIS

                                   FROM THE CIRCUIT COURT OF HENRICO COUNTY
                                              Rondelle D. Herman, Judge

                              John S. Koehler (Law Office of James Steele, PLLC, on briefs), for
                              appellant.

                              E. Brandon Ferrell (Wm. Tyler Shands; Kerrigan O’Malley; Carter
                              & Shands, PC, on brief), for appellee.

                     James Wesley Joplin, Sr. (appellant) appeals an order dismissing his personal injury

              action against Terae Brenzell Harris (appellee) and enforcing an illegible but signed document in

              which appellant purported to release all claims in exchange for $25,000.

                     Appellant asserts three assignments of error. First, he challenges the court’s reliance on an

              unexecuted release to ascertain and enforce the content of the illegible document, arguing that the

              unexecuted release constituted improper parol evidence. Second, appellant contends the court erred

              in finding a “unilateral mistake of fact” as to whether his lawyer had authority to agree to the

              purported settlement “where the record showed that [appellant’s] counsel expressly conveyed to

              [appellee’s] counsel that the settlement offer had not been accepted.” Third, appellant argues the

              court erred in finding a “meeting of the minds” to settle the action. For the following reasons, we

              reverse.

                     *
                         This opinion is not designated for publication. See Code § 17.1-413(A).
                                        BACKGROUND1

       Appellant brought a $300,000 personal injury action against appellee after a traffic

accident. Appellee was driving a rental car from Enterprise Leasing Company of

Norfolk/Richmond, LLC (ELCO). ELCO provided liability coverage for appellee’s alleged

tortious conduct; in addition, appellee’s personal insurance carrier, State Farm, provided liability

coverage.

       The incident occurred on June 2, 2016. On December 22, 2017, ELCO claims-adjustor

Galen Powell emailed a release and a $25,000 settlement offer to a law firm representing

appellant but received no response.2 On April 16, 2020, Powell wrote an attorney at the firm to

check the status of the release, advising as follows: “To date, we have not received the completed

release to settle your client’s claim. We presume our offer has been rejected. If our presumption

is in error or you have any questions or comments regarding this matter, please contact [me]

immediately.”

       On May 26, 2020, Powell received a call from Theodore Briscoe, a different attorney at

the firm representing appellant. While they spoke on the phone, Briscoe instructed his paralegal

to “find the release so we can get that over to them.” As Briscoe discussed with Powell how to

structure the settlement so that only ELCO, and not State Farm, was released, Briscoe’s paralegal

“found the release and emailed it over during the course of that conversation.”3

       1
        We review the evidence in the light most favorable to appellee, the prevailing party
below. Congdon v. Congdon, 40 Va. App. 255, 258 (2003).

       The record does not contain Powell’s email transmitting any release, only Powell’s
       2

computerized file note documenting the correspondence.
       3
         The record does not contain the paralegal’s email transmitting any signed release, only
Powell’s computerized file note documenting the phone call and referring to the release being
“signed and sent back.”
                                              -2-
        The record does not contain a legible version of any signed release. It does contain a

document that is faded and illegible except for (1) appellant’s undated, notarized signature;4 and

(2) a typed note beneath the signature reading, “Good afternoon. I was able to get this Doc signed

for Miss Britney. If you have any questions[,] please call me.” Briscoe, who testified as a fact

witness, stated that the faded and illegible document “accurately reflect[s] how it looked in [the law

firm’s] system the day it was sent to Mr. Powell.”5

        Briscoe testified that he personally had not provided the document to appellant for

signing but that it “had already been signed at some date well before [the] call” with Powell.

Briscoe explained that appellant had “[a]t least two” prior attorneys and the document had “been

signed and in [his law firm’s] computer system for at least a year.”

        Briscoe also testified that when his paralegal sent the document, Briscoe did not believe it

was a release of appellant’s entire claim, just a release of ELCO. During the call, however, Powell

advised that the document was “structured” as a release of appellant’s entire claim. Briscoe testified

that upon realizing he and Powell “were not on the same page” about the scope of the release,

Briscoe specifically asked Powell to “keep that on ice.” According to Briscoe, Powell said “okay”

and “that he’d talk to his supervisors about it and see if there was some other type of release that

they could get to us.”

        On cross-examination, Briscoe indicated that he had not reviewed the document his

paralegal sent to Powell and, at the time, “didn’t understand” it to be “a release of [appellee]

herself as opposed to a release of simply ELCO and their tendering their policy limits.” Briscoe

        4
         The only date on the document appears with the notary public’s signature and seal,
indicating that her “commission expires 8/31/2020.”
        5
          Appellee maintains that she introduced a “more legible” version of the signed document
during Powell’s de bene esse deposition. That exhibit is included in the record and is no more
legible than any other version.
                                               -3-
testified that he “clearly explain[ed]” to Powell that “there was no intention to settle this entire

case” and that it was appellant’s intent to maintain his personal injury action against appellee.

       Appellee contends that the illegible document was a full release, relying on a legible but

unexecuted release that ELCO produced in discovery. The unexecuted release provides that in

exchange for $25,000, appellant agreed to “fully and forever release” ELCO and its related entities,

appellee, and “all other persons, firms, and corporations” from all losses arising from the June 2,

2016 accident. Appellant testified that he never agreed to settle his entire claim for the $25,000

offered by ELCO, nor did he authorize counsel to enter into any settlement whatsoever.

       Powell, who testified via a de bene esse deposition, described the unexecuted release as

being similar in “format” to the illegible document from Briscoe’s law firm. Powell testified that

when he received the document during the May 2020 phone call, he discussed with Briscoe “that

this release[s] . . . [appellee].” They also discussed a recent statutory amendment that required a

“change of format to releases in Virginia” and required “send[ing] notice to the renter.” Powell told

Briscoe that he would consult ELCO’s management and State Farm’s counsel to see if the release

“was okay to proceed on.”6

       On cross-examination, Powell acknowledged that there were, in fact, two issues he wanted

to take up with ELCO’s management and State Farm’s counsel. In addition to asking whether the

release was still valid despite the statutory amendment, Powell wanted to alert them to the

disconnect between “what [Briscoe] verbalized versus what he sent” in the document the paralegal

emailed. Specifically, Powell “understood [Briscoe] verbalizing that he’s not . . . dismissing

       6
          Although nowhere in the record do the parties specify the statute or amendment,
appellant’s opening brief suggests that “[p]resumably, the statute is Code § 38.2-2206.” That
statute addresses the settlement of uninsured motorist claims. 2019 amendments revised
subsections (K) and (L)—a so-called “pay and quit” provision and a notice requirement for
releases thereunder. 2019 Va. Acts ch. 799. The applicability of the statute is not at issue in this
appeal.
                                                -4-
[appellant’s] case against [appellee]” and was “looking to proceed in suit,” even though his office

simultaneously returned a release that extinguished appellant’s entire claim.

        Powell denied that Briscoe had said “anything along the lines of putting the release on

ice, disregard” but acknowledged that Briscoe did “explicitly tell [Powell] there was no intention

to release [appellee].”

        Powell testified that he informed his ELCO supervisor that Briscoe “talk[ed] about

pursuing [appellee] continually even though he signed a release” and that Briscoe “specifically

said he’s continuing his suit.” The ELCO supervisor, who said the release was “valid” despite

the statutory changes, advised Powell to “contact an attorney on this and make sure” and “then

go ahead and send your payment.” Powell contacted appellee’s lawyer, who had been furnished

by State Farm to provide a defense. The substance of their conversation was protected by the

attorney-client privilege.

        Referring to the signed but illegible document, Powell testified that he did not know who

“Miss Brittney” was in the typed note appended to the bottom. Asked if the illegible document

was a “release,” Powell said that “the document would say ‘release,’” but agreed that the word

was nowhere legible on the document. Powell maintained that the illegible document “was the

release” but acknowledged that “[a]s it’s presented in the exhibit, it’s faded to the point where I

can’t see [the word ‘release’].”

        Powell sent a check to Briscoe, who responded that appellant was “not in agreement to

settle this claim.” Powell then reiterated that “the release settles it and we are issuing payment.”

Briscoe said that the check would not be cashed and appellant intended to go forward with the

suit.

        Appellee filed a “Plea of Accord and Satisfaction,” which she also referred to in the

pleading as a “Motion to Enforce a Settlement.” Appellee argued that the parties had settled the

                                                -5-
matter through “a signed and executed release agreement” and attached the illegible document.

After several continuances, including an allowance of time to take Powell’s de bene esse

deposition, appellee filed a second “Plea of Accord and Satisfaction” that attached the

unexecuted release. Not only was the release unexecuted, but it also did not contain the typed

“Miss Brittney” note appearing at the bottom of the illegible document.

        At a hearing on the plea, appellant argued that appellee could not use the unexecuted release

as parol evidence to prove the content of the purported settlement. Appellant further argued the

evidence established that appellant’s lawyer, Briscoe, had advised Powell that no settlement had

been accepted, that appellant had not authorized Briscoe to accept any settlement, and that there was

no meeting of the minds to settle.

        Appellee countered that the unexecuted release was admissible to prove—and, in fact did

prove—the content of the illegible document, that Briscoe had acceded to the settlement with

apparent authority to do so, and that any mistake regarding the settlement inured to appellee’s

benefit.

        After considering the evidence and post-hearing briefs, the court granted appellee’s plea and

dismissed the lawsuit based on accord and satisfaction. In a letter opinion, the court ruled that there

had been a unilateral mistake of fact as to whether Briscoe had the authority to settle the case,

stating that “based on the signed document, it is reasonable to infer that [appellant’s] counsel

engaged in settlement negotiations and held himself out as having apparent authority.”

        The court next determined that the unexecuted release did not violate the rule against parol

evidence and was sufficient to prove the content of the illegible document. The court dismissed the

matter with prejudice and stated that appellant’s “dispute is with the attorneys who held themselves

out as having the apparent authority to settle the case, executed a release settling the case[,] and who

advised others to keep things ‘on ice’ until the release issue could be resolved.”

                                                 -6-
                                            ANALYSIS

       Appellant argues the court erred in admitting the unexecuted release “as it constituted

improper parol evidence to prove the content of the illegible document[,] which [appellee]

purported to be a settlement of all claims.” The admissibility of parol evidence presents a legal

question that we review de novo. See Va. Elec. & Power Co. v. N. Va. Reg’l Park Auth., 270 Va.

309, 315 (2005); see also Zehler v. E.L. Bruce Co., 208 Va. 796, 797 n.2 (1968) (“[T]he parol

evidence rule is a rule of substantive law rather than a rule of evidence.”). We defer to

subsidiary factual findings unless plainly wrong or unsupported by the evidence. See Collins v.

First Union Nat’l Bank, 272 Va. 744, 749 (2006).

       As the party moving to enforce a settlement agreement, appellee had the burden to prove

its existence and content. See Baldwin v. Baldwin, 44 Va. App. 93, 99 n.1 (2004) (“[T]he party

asserting the existence of a[] [settlement] agreement bears the burden of persuasion to prove its

existence.”); see also Virginia-Carolina Elec. Works, Inc. v. Cooper, 192 Va. 78, 80-81 (1951)

(stating that “an accord and satisfaction is founded on contract embracing an offer and

acceptance” and “[t]he burden [is] on the [moving party] to prove [its] plea”). Because the

signed document appellee sought to enforce was illegible, she relied on an unexecuted release to

prove that appellant agreed to settle his entire personal injury action and release all potentially

responsible parties in exchange for $25,000.

       The unexecuted release constituted parol evidence because it was extrinsic to the contract

that appellee sought to enforce. See Worsham v. Worsham, 74 Va. App. 151, 165 (2022).

               [T]he parol-evidence rule provides that “where [the] parties have
               reduced their contract to a writing [that] imposes a legal obligation
               in clear and explicit terms[,] the writing [is] the sole memorial of
               that contract, and it is conclusively concluded that the writing
               contains the whole contract, and is the sole evidence of the
               agreement.”

                                                 -7-
Id. (all but first alteration in original) (quoting Jim Carpenter Co. v. Potts, 255 Va. 147, 155

(1998)). “When the contract is unambiguous, extrinsic evidence of prior or contemporary

discussions, understandings, or agreements is inadmissible ‘to contradict or vary the plain

language of the instrument itself.’” Id. at 165-66 (quoting Utsch v. Utsch, 266 Va. 124, 130

(2003)).

       Virginia courts have also allowed parol evidence to prove the existence and content of a

lost or destroyed document. See Milan v. Kephart, 59 Va. 1, 9 (1867) (noting that a rental lease,

destroyed by an unknown third party, was “proved . . . by parol evidence”). “[T]he greater the

value of the [lost or destroyed] instrument[,] the more conclusive should be the proof of its

existence and contents.” Carter v. Wood, 103 Va. 68, 71 (1904) (quoting Thomas v. Ribble, 24

S.E. 241, 242 (1896)). For example, “strong and conclusive” proof of a lost deed’s “former

existence, its loss, and its contents” is required to “establish a title by parol testimony.” Id.

(quoting Thomas, 24 S.E. at 242); accord Baber v. Baber, 121 Va. 740, 753 (1917); see also

McLin v. Richmond, 114 Va. 244, 251 (1912) (finding that a testator’s “self-serving declarations”

as to his ownership of certain real property in question “[fell] short of that conclusive proof [of

title] which the law demands”).

       The unexecuted release did not violate the general rule against parol evidence because it

was not offered to alter or contradict any part of the illegible document. See Worsham, 74

Va. App. at 165. Instead, appellee offered it to establish the substance of the illegible document,

a situation analogous to proving a lost or destroyed document with parol evidence. See, e.g.,

Carter, 103 Va. at 71. However, because insufficient evidence linked these two documents, the

court erred in admitting and relying on the unexecuted release to ascertain the content of the

illegible document.

                                                 -8-
       In Carter, the Supreme Court cautioned that “the greater the value” of the lost document,

“the more conclusive” should be the proof of its terms. Id. Here, the value of the illegible

document was significant for all parties: it could absolve appellee of all responsibility, and it

could preclude appellant from fully vindicating his losses. However, considering the facts of this

case, we need not articulate a new standard of proof for admitting parol evidence to substantiate

an illegible contractual release. The evidence, even when viewed in the light most favorable to

appellee, failed to meet a simple preponderance standard.

       Specifically, the evidence was insufficient to prove that the unexecuted release was

substantively equivalent to the illegible document. Appellee’s evidence merely showed that the

unexecuted release was a standard form that ELCO used when offering to pay the policy limits to

a claimant. Although the unexecuted release included the parties’ names and the incident date,

no evidence established that the document matched what ELCO sent to appellant in December

2017. Powell did not testify that the unexecuted release was a copy of that 2017 document; he

only stated that it was similar in “format” to the illegible document from Briscoe’s law firm. But

evidence of a similar format falls far short of proving identical language. Only through

speculation could the court conclude that the illegible document matched the unexecuted release

and contained the provision settling appellant’s entire claim and releasing all parties of liability.

Therefore, the unexecuted release was improper parol evidence to establish the content of the

illegible document.

       Relying on the unexecuted release, the court ignored the overwhelming evidence that

appellant did not intend to settle with appellee. It was undisputed that, during the May 2020

phone call, Briscoe repeatedly advised Powell that appellant wanted to proceed against appellee.

Powell conceded that he understood what Briscoe “verbalized” about appellant’s intent and

discussed this intent with his ELCO supervisor and State Farm.

                                                 -9-
       The court also ignored evidence that appellant’s signature was undated and the illegible

document had been filed away at Briscoe’s office for over a year, returned to ELCO not at

appellant’s direction but during a phone call in which Briscoe made it explicitly clear that

appellant’s intent was to maintain his action against appellee. Appellant also testified that he

never agreed to settle his entire claim for the $25,000 offered by ELCO. Furthermore, the court

ignored its own finding that Briscoe told Powell to put any purported release “on ice,” instead

allowing the illegible document—with terms borrowed from the unexecuted release—to

conclusively define and govern a contractual relationship between the parties. By confining its

analysis to these documents, without sufficient evidence linking them, the court overlooked

ample evidence that appellant rejected any offer to settle with and release appellee. See

Bangor-Punta Operations, Inc. v. Atl. Leasing, Ltd., 215 Va. 180, 183 (1974) (“A compromise to

be binding must arise from a complete agreement[,] and before an agreement can be complete

there must be an acceptance of an offer.”)

       The unexecuted release constituted improper parol evidence to prove the content of the

illegible document, and the court erred in admitting it. This determination is dispositive of the

appeal, as without proof of the content of the illegible document, the record contains no

enforceable settlement agreement. Accordingly, we reverse without considering the remaining

issues. See S’holder Representative Servs., LLC v. Airbus Ams., Inc., 292 Va. 682, 689 (2016)

(noting that “a dispositive assignment of error obviates any need to address other assignments of

error” (citing City of Chesapeake v. Dominion SecurityPlus Self Storage, L.L.C., 291 Va. 327,

336 (2016))).

                                               - 10 -
                                        CONCLUSION

       For these reasons, we reverse the circuit court’s judgment dismissing appellant’s suit with

prejudice and remand for further proceedings consistent with this opinion.

                                                                         Reversed and remanded.

                                              - 11 -