Court Opinion

ID: 9580418
Source: CourtListenerOpinion
Date Created: 2023-08-21 22:04:47.01068+00
Date Added: 2024-06-11T13:36:15.897898
License: Public Domain

Carley, Judge,
dissenting.
I respectfully dissent from Division 2 of the majority opinion holding that the trial court did not err in failing to sustain an objection to the testimony of the president of the plaintiff corporation that the defendant stated to him that he was "... gonna do what’s right,” that defendant "... thought I’d give you $5,000,” and that plaintiffs president didn’t "... feel like that’s quite adequate.” The defendant timely objected to this testimony as being inadmissible as an admission or proposition made with a view to compromise as proscribed by Code Ann. § 38-408. The majority holds the prohibition of Code Ann. § 38-408 to be inapplicable and the testimony to be admissible by reliance upon Williams v. Smith, 71 Ga. App. 632, 642 (31 SE2d 873) (1944). Williams is distinguishable from the case at bar because there defendant did not dispute the execution of the option which was the basis of plaintiffs action but rather contested the enforceability of the option in the action. Here, the threshold inquiry for the jury was as to the existence of the oral contract between plaintiff and defendant.
As seen from the language of Williams quoted in the majority opinion, this court in Williams relied upon the Supreme Court’s decision in Teasley v. Bradley, 110 Ga. 497 (6) (35 SE 782, 78 ASR 113). Although the distinctions are subtle and almost imperceptible, there is a discernible difference between the operable facts of the cases presenting permissible testimony of pre-litigation dealings such as Williams and Teasley and those exemplifying testimony proscribed by Code Ann. § 38-408. ITiat the ruling in Williams which is based upon Teasley is not dispositive of this case is manifest when it is *500recognized that the rationale for the holding in Teasley was that "[t]here is a distinction between an offer or proposition to compromise a doubtful or disputed claim, and an offer to settle upon certain terms a claim that is unquestioned. An admission made in an offer of the latter character will be admissible when one made in an offer of the former character will not.” (Emphasis supplied.) Teasley v. Bradley, supra, 507. See also Butts v. Davis, 126 Ga. App. 311, 315 (190 SE2d 595) (1972). In both Williams and Teasley the challenged testimony related to offers to settle unquestioned claims. Here the sine qua non of the action was the alleged oral contract, the existence of which was denied by the defendant.
Making an attempted analogy to Williams, the majority in this case postulates a strained analysis of the testimony to which objection was interposed by holding that it "does not indicate any effort of the parties to reach a settlement.” Viewing this statement in light of the evidence, it appears that the majority conditions the exclusionary effect of Code Ann. § 38-408 upon the existence of some unspecified degree of "effort of the parties to reach a settlement.” That the defendant mentioned the figure of $5,000 and the plaintiffs representative enunciated that he did not "feel like that’s quite adequate” certainly indicates an effort "to reach a settlement,” albeit an abortive one. Surely the success of the "effort” is not determinative because if there were a completed settlement, there would be no litigation and no trial and, consequently, no evidence to which the rule could apply.
The public policy objective underlying the exclusionary rule is the encouragement of settlement negotiations and discussions among litigants or prospective litigants. To achieve that goal, this rule assures a party to a dispute that his attempt to settle a potential controversy cannot later be construed as an admission of liability so as to preclude his asserting a claim or raising a defense in a lawsuit.
I think the situation at bar is a perfect example of the harm sought to be avoided by Code Ann. § 38-408. Plaintiff here alleged an oral contract and the defendant denied the existence of the same. By pleading his denial, *501he joined issue so that plaintiff had the duty to prove the contract by a preponderance of the evidence. However, at trial plaintiff was allowed to show evidence of defendant’s pre-litigation statements which could cause an impartial trior of fact to wonder why the defendant would offer $5,000 if, indeed, no oral contract existed. In short, the defendant’s proposition "made with a view to compromise” has returned to haunt him.
Thus, I believe that it is probable that this testimony influenced the jury’s verdict which determined that there was an oral contract between the parties. "The rule against allowing evidence of compromises is founded upon recognition of the fact that such testimony is inherently harmful, for the jury will draw conclusions therefrom in spite of anything said by the parties at the time of discussing the compromise, and in spite of anything which may be said by the judge in instructing them as to the weight to be given such evidence.” Georgia R. &c. Co. v. Wallace, 122 Ga. 547, 551 (50 SE 478) (1905). The law of this state encourages negotiations in an effort to achieve compromise eliminating or minimizing potential litigation. Green, The Georgia Law of Evidence 544, § 254; Agnor’s Georgia Evidence 196, § 10-21. See also Newton Bros. v. Shank, 240 Ga. 471 (241 SE2d 231) (1978); Taylor v. Aetna Life Ins. Co., 235 Ga. 630 (221 SE2d 45) (1975). The effect of the holding of the majority will be to discourage future potential litigants from seeking a non-judicial resolution of their differences and, as a result, the public policy goal of Code Ann. § 38-408 will be thwarted.
For the above reasons, I believe that the challenged testimony was inadmissible and that the failure to exclude the same was harmful error requiring reversal of the judgment entered on the verdict in favor of the appellee. For the above reasons, I respectfully dissent.
I am authorized to state that Presiding Judge Quillian, Presiding Judge McMurray and Judge Smith join in this dissent.