In the recent Georgia Supreme Court case of Grange Mutual Casualty Company v. Woodard, the court determined that pre-suit settlement offers in motor vehicle accident cases can include terms that go beyond simply stipulating the dollar amount and a date that the offer must be accepted. The decision analyzed Georgia’s pre-suit offer law, found in O.C.G.A. § 9-11-67.1.
The holding affirms that personal injury victims have the freedom to add conditions to pre-suit settlement offers, including prompt-payment stipulations. O.C.G.A. § 9-11-67.1
This law states that:
“Prior to the filing of a civil action, any offer to settle a tort claim for personal injury, bodily injury, or death arising from the use of a motor vehicle and prepared by or with the assistance of an attorney on behalf of a claimant or claimants shall be in writing and contain the following material terms:
(1) The time period within which such offer must be accepted, which shall be not less than 30 days from receipt of the offer;
(2) Amount of monetary payment;
(3) The party or parties the claimant or claimants will release if such offer is accepted;
(4) The type of release, if any, the claimant or claimants will provide to each releasee; and
(5) The claims to be released.”
Subsection (b) of the law states “The recipients of an offer to settle made under this Code section may accept the same by providing written acceptance of the material terms outlined in subsection (a) of this Code section in their entirety.”
Subsection (c) of the law additionally states that “Nothing in this Code section is intended to prohibit parties from reaching a settlement agreement in a manner and under terms otherwise agreeable to the parties”
Subsection (g) states that “Nothing in this Code section shall prohibit a party making an offer to settle from requiring payment within a specified period; provided, however, that such period shall be not less than ten days after the written acceptance of the offer to settle.”
The Facts and Holding of Grange
This case stemmed from a fatal car accident that occurred in 2014. The plaintiff, Boris Woodard, was driving in a car with his daughter when they collided with the defendant. Boris Woodard was injured and his daughter was killed. Woodard made a pre-suit offer to settle his personal injury and wrongful death claim pursuant to O.C.G.A. § 9-11-67.1. The settlement offer included a condition that, if the defendant accepted the offer, they must deliver payment within 10 days.
The defendant accepted the settlement, but because of an addressing error did not deliver the payment within 10 days. When the payment didn’t arrive in time, Woodard’s attorney retracted the pre-suit settlement offer. But the defendant claimed that Woodard couldn’t retract the offer, because the settlement agreement was already reached. What’s more, the defendant claimed that the condition requiring payment within 10 days was not even permitted under O.C.G.A. § 9-11-67.1, because according to subsection (b), only the “material terms outlined in subsection (a)” needed to be accepted to create a binding agreement.
The Court rejected the arguments made by the defendant and held that pre-suit settlement agreements can have terms beyond those stipulated by O.C.G.A. § 9-11-67.1. Although the Court’s determination does appear to somewhat contradict the plain language of subsection (b), it was completely consistent with the language of subsections (c) and (g). When statutes are ambiguously written, it is up to courts to interpret them in a way that upholds the legislature’s intent. Here, because subsections (c) and (g) clearly support the notion that claimants should be able to add conditions to pre-suit offers, the Court made a sound interpretation.
For More Information, or to Discuss Your Case, Contact Williams Elleby Howard & Easter
The experienced Georgia personal injury attorneys at Williams Elleby Howard & Easter, work hard to maximize settlements on behalf of each of their clients. When a fair settlement can’t be reached, Joel Williams and his team of attorneys vigorously represent clients in court. If you have been injured due to someone else’s wrongful conduct, call Williams Elleby Howard & Easter, to schedule a free consultation at 833-LEGALGA today.
