Court Opinion

ID: 9608692
Source: CourtListenerOpinion
Date Created: 2023-08-22 03:15:56.01547+00
Date Added: 2024-06-11T12:07:38.018522
License: Public Domain

Justice ERICKSON
concurring:
I agree with the majority’s analysis in most respects, including its determination that offers of judgment made pursuant to section 13-17-202(3), 6A C.R.S. (1992 Supp.), are at all times irrevocable. I write separately, however, to emphasize that although the offer of judgment was irrevocable and binding at the time of acceptance, there are some circumstances in which offers of judgment made pursuant to the statute are terminated and not capable of acceptance. In my view, the trial court had the authority and the right to enter a summary judgment in favor of De Leuw at any time prior to the acceptance of the offer of judgment by Centric. At no point was the trial court stripped of jurisdiction or the right to determine and enter a valid and effective summary judgment. However, the entry of summary judgment did not invalidate the offer of judgment made pursuant to the statute. Prior to the expiration of the offer, Centric was free to either accept or reject it.
The majority properly concludes that offers of judgment made pursuant to section 13-17-202(3) are always irrevocable. Maj. op. at 9. However, the majority fails to recognize that contract principles control the underlying basis for the irrevocability of offers of judgment.1 Accordingly, in my *949view, contract principles relating to option contracts provide valuable guidance on when an offer of judgment tendered pursuant to section 13-17-202(3) is terminated.
Although an option contract is an irrevocable offer, the offer itself, under certain circumstances, may be terminated. An irrevocable offer is terminated by the lapse of time, death, or destruction of a person or thing essential for the performance of the proposed contract, or a supervening legal prohibition relating to the proposed contract. See Matter of Estate of Jorstad, 447 N.W.2d 283, 286 (N.D.1989); John D. Calamari & Joseph M. Perillo, Contracts § 2-25 at 124-25 (3rd ed. 1987); Restatement (Second) of Contracts § 37 (1981).
The facts of this case present no basis for finding that the offer of judgment made jointly by CDOT and De Leuw was terminated. The irrevocable offer from CDOT and De Leuw had not terminated due to a lapse of the ten-day period provided in both the offer and the statute.2 Nor had the offer terminated due to the destruction of a party or the subject matter of the proposed contract.3 Finally, there was no supervening illegality that defeated the purpose for which the offer of judgment was made. Accordingly, while an irrevocable offer made pursuant to section 13-17-202(3) may be terminated in certain instances, none of those conditions are present in this case. I agree, therefore, with the majority that the offer of judgment was not terminated when the trial court entered summary judgment in favor of De Leuw and that the offer remained open at the time Centric accepted it.
In my view, the dissent misinterprets the majority’s holding. While the offer of judgment remains outstanding, the trial court is not stripped of the power to issue summary judgment in favor of De Leuw, or from issuing any other ruling affecting the rights of the parties. The statute provides no vehicle or requirement for notifying the trial court that an offer of judgment is outstanding, nor does it provide that the trial court lacks power to decide issues relating to the substantive rights of the parties while an offer is outstanding.
Any trial court ruling made during the period of time the offer is outstanding is effective and valid, subject only to a possibility that the ruling will be of no consequence if the offer of judgment is accepted. If Centric had not accepted the defendants’ offer of judgment, the trial court’s summary judgment in favor of De Leuw would have been in effect. Cf. Davidson Chevrolet, Inc. v. City & County of Denver, 138 Colo. 171, 175, 330 P.2d 1116, 1118 (1958) (stating that even irregular and erroneous judgments retain their force and have effect until modified by the trial court, or until vacated pursuant to new trial procedures, or until reversed by an appellate *950court in review proceedings), cert. denied, 359 U.S. 926, 79 S.Ct. 609, 3 L.Ed.2d 629 (1959). However, because no final appeal-able judgment had been entered prior to Centric’s acceptance of the defendants’ offer, any rulings of the court remained open to modification, reconsideration, and withdrawal. See C.R.C.P. 54(b); see, e.g., Manka v. Martin, 200 Colo. 260, 264, 614 P.2d 875, 878 (1980) (stating that under C.R.C.P. 54(b), when a summary judgment disposes of less than the entire action, the judgment is not final unless the trial court expressly determines that there is no just reason for delay and directs the entry of a final judgment), cert. denied, 450 U.S. 913, 101 S.Ct. 1354, 67 L.Ed.2d 338 (1981); Broadway Roofing & Supply, Inc. v. District Court, 140 Colo. 154, 158, 342 P.2d 1022, 1025 (1959) (stating that C.R.C.P. 54(b) expressly provides that in the absence of an express direction by the trial court for the entry of final judgment, any order or other form of decision which adjudicates less than all the claims shall not terminate the action as to any of the claims and the order or other form of decision is subject to revision at any time before entry of judgment adjudicating all of the claims); see also C.R.C.P. 59; C.R.C.P. 60; Smith v. Whitlow, 129 Colo. 239, 244, 268 P.2d 1031, 1034 (1954) (holding that where an action has been tried to the court without a jury, and a motion for new trial has been filed after entry of findings and judgment, the trial court has the power to vacate the original findings and judgment, reverse itself, and enter judgment in favor of the opposite party); Goodwin v. Eller, 127 Colo. 529, 534, 258 P.2d 493, 495 (1953) (same); see generally 6-6A James W. Moore et al., Moore’s Federal Practice ¶¶ 54.28, 59.11, 59.12 (2d ed. 1993). When Centric accepted the offer of judgment, the trial court was required, pursuant to the explicit terms of section 13-17-202(3) to enter judgment against CDOT and De Leuw. That judgment would become the final judgment of the trial court and would nullify all prior inconsistent orders.
The offer of judgment given by CDOT and De Leuw to Centric pursuant to section 13-17-202(3) was irrevocable for ten days. However, the offer remained subject to termination under ordinary contract rules applicable to the termination of option contracts. While the offer was outstanding, the trial court was not stripped of its power to decide De Leuw’s summary judgment motion, or to issue other rulings affecting the litigation. The trial court erred in not entering judgment against CDOT and De Leuw pursuant to the explicit terms of section 13-17-202(3). I concur with the majority’s decision to remand to the trial court with directions to enter judgment in favor of Centric on the offer of judgment.

. Offers of judgment are irrevocable primarily because they are option contracts. The offeror receives valuable consideration in exchange for the making of the offer. See Rules v. Sturn, 661 P.2d 615, 618 (Alaska 1983) (stating that an offer of judgment is an offer for a period of *949time fixed by rule of law that is comparable to an option for consideration); Morris K. Udall, May Offers of Judgment Under Rule 68 Be Revoked Before Acceptance?, 19 F.R.D. 401, 403 (1957) (stating that offers of judgments are "like an option that you have for ten days based upon a valuable consideration").

. Had Centric not accepted the offer of judgment within the ten-day period, the offer of judgment would have terminated due to a lapse of time.

. The summary judgment entered by the trial court did not remove De Leuw from the action, nor did it destroy the object of the irrevocable offer, the pending lawsuit. At any time prior to a final resolution of the issues, the trial court’s grant of summary judgment in favor of De Leuw could be reversed and De Leuw ordered to trial. No final order was entered pursuant to C.R.C.P. 54(b), and the trial court retained power to reverse the summary judgment and order De Leuw to trial. See Broadway Roofing & Supply, Inc. v. District Court, 140 Colo. 154, 342 P.2d 1022 (1959). Similarly, either the court of appeals or this court could, on appeal, reverse the trial court’s entry of summary judgment and return the case for a new trial.
De Leuw, acting in its own best interests, could decide at any point that settling the claims against it was preferable to running the risk of a future adverse ruling by either the trial court, the court of appeals, this court, or potentially a jury. The trial court’s order of summary judgment did not remove De Leuw from the action. Rather, De Leuw remained a party to the action that could enter into an offer of judgment under section 13-17-202 at any time within ten days prior to the start of the trial. The time period in which De Leuw might enter into an offer of judgment pursuant to the statute might even include a period of time after the trial court entered summary judgment in De Leuw's favor.