Diaz v. Thweatt et al.

Facts

After a car accident in which Alexander Diaz rear-ended a car and caused it to overturn, Allstate tendered the policy limits to the injured parties, Daria and Delhi Thweatt. The Thweatts returned the checks and the limited liability releases that came with the tender and sent their own offer pursuant to O.C.G.A. § 9-11-67.1. The offer provided that the Thweatts would only release their bodily injury and personal injury claims against Diaz. The Thweatts stated it would be a counteroffer if Allstate responded with any documents that included additional terms or condition not referenced in the Thweatts’ offer, or that conflicted with the offer.

Allstate responded to the offer by stating it was accepting it. Allstate included two limited liability releases that included language discharging Diaz, as well as Allstate and the policy holder Mariana Vazquez. The releases further stated that that the policy limit was sufficient compensation, and that the defendants denied all liability for the collision.

Considering Allstate’s purported acceptance to constitute a counteroffer and thus a rejection of their demand, the Thweatts filed suit against Alexander Diaz, alleging negligence and seeking damages. The trial court denied Diaz’s motion to enforce the settlement agreement, leading to this appeal.

Issues & Holdings

1. Was there a binding settlement agreement under OCGA § 9-11-67.1?

Holding: Yes. The Court of Appeals reversed the trial court’s ruling, finding that the parties had formed a binding contract when Allstate accepted the Thweatts’ offer.

2. Did the proposed releases constitute a counteroffer?

Holding: No. The court held that the proposed releases were not a counteroffer, as they were not required for acceptance under the statute.

Reasoning

The court applied OCGA § 9-11-67.1, which governs settlement offers in motor vehicle tort cases, emphasizing the statute’s provisions for the material terms required to form a binding agreement. It found that the Thweatts’ offer included all necessary material terms and that Allstate’s written acceptance satisfied the statute’s requirements.

The proposed releases sent by Allstate were deemed precatory—intended for the plaintiffs’ review and revision—and not a rejection of the Thweatts’ offer. The court highlighted that Allstate explicitly indicated its intent to accept the offer, providing settlement checks and inviting feedback on the releases. OCGA § 9-11-67.1(d) expressly states that, if a release is not included with the offer to settle, providing a release does not constitute a counteroffer.

The court also noted that once the offer was accepted, the subsequent presentation of the releases was not a condition of forming the agreement but rather a matter of performance.

Conclusion

This decision reaffirms the enforceability of settlement agreements under OCGA § 9-11-67.1 and clarifies that proposed releases accompanying an acceptance do not constitute a counteroffer if a release did not accompany the offer. 

For attorneys, this case underscores the importance of ensuring that settlement communications conform strictly to the terms outlined in the statute. It also illustrates that disputes over non-material terms, such as the language of a release, should not undermine an otherwise valid agreement.

Lawyers drafting or responding to settlement offers under OCGA § 9-11-67.1 should carefully review the statutory requirements, ensure clear communication of acceptance, and address any potential disputes about release terms separately from the settlement agreement itself. This decision provides a practical framework for navigating post-acceptance issues without jeopardizing the agreement.

Citation: Diaz v. Thweatt et al., No. A24A1062 (Ga. Ct. App. October 16, 2024)