Jackson v. Con-Way Transportation Services, Inc.

[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FILED
FOR THE ELEVENTH CIRCUIT U.S. COURT OF APPEALS
________________________ ELEVENTH CIRCUIT
MAR 15, 2007
No. 06-14417 THOMAS K. KAHN
Non-Argument Calendar CLERK
________________________
D. C. Docket No. 05-00431-CV-KD-B
BARON K. JACKSON,
MICHELLE L. JACKSON,
Plaintiffs-Appellants,
versus
CON-WAY TRANSPORTATION SERVICES, INC.,
a.k.a. Con-Way Southern Express,
Defendant,
FIKES TRUCK LINE, INC.,
Defendant-Appellee.
________________________
Appeal from the United States District Court
for the Southern District of Alabama
_________________________
(March 15, 2007)
Before TJOFLAT, BIRCH and HULL, Circuit Judges.
PER CURIAM:
Baron Jackson and Michelle Jackson appeal the district court’s order
denying their motion for reconsideration under Federal Rule of Civil Procedure
60(b), in which they challenge the denial of their motion to reinstate their
underlying diversity action. We AFFIRM.
I. BACKGROUND
The Jacksons filed a complaint against defendant Con-Way Southern
Express and defendant-appellee Fikes Truck Line, Inc. for injuries suffered in an
vehicular collision. They alleged that their automobile was involved in a collision
caused by the defendants’ negligent operation of two tractor trailers. The Jacksons
sought compensatory and punitive damages. Both named defendants filed a notice
of removal to federal court which removed this case to the Southern District of
Alabama based on diversity under 28 U.S.C. § 1332.
Subsequently, the Jacksons settled their case with Con-Way Transportation
Services, Inc., and the district judge dismissed the complaint against Con-Way
with prejudice. The remaining defendant, Fikes, filed a notice of settlement to
notify the court that a confidential settlement agreement had been negotiated. The
district judge entered an order dismissing the case with prejudice, but the order also
provided for “the right of any party to reinstate the action within thirty (30) days
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of the date of this order should the settlement agreement not be consummated.”
Doc. 24 at 2. Within the thirty days, the Jacksons’ attorney and the attorney for
Fikes filed a Joint Stipulation for Dismissal for the dismissal with prejudice of all
claims against Fikes.
The Jacksons, proceeding pro se, filed a motion for reinstatement and
sought to reinstate their case against Fikes because the Jacksons rejected the
settlement offer and did not consummate a settlement. Fikes filed an objection and
argued that the Jacksons executed a general release and settlement agreement that
provided for the release of “all claims arising out of the [collision at issue].” Doc.
27, Ex. A at 1(General Release and Confidential Settlement Agreement, May 30,
2006). Additionally, the release provided that the Jacksons “acknowledge that
they have read and understand this Release and Confidential Settlement Agreement
and execute it freely with the express knowledge and consent of counsel for the
undersigned.” Id. at 3.
Fikes further argued that the Jacksons endorsed the settlement check, which
read, “IN FULL PAYMENT OF ANY AND ALL CLAIMS.” Doc. 27 at 2. The
settlement check was attached to a piece of paper that read, “WHEN YOU SIGN
(ENDORSE) THE ATTACHED SETTLEMENT CHECK, YOU HAVE
ACCEPTED PAYMENT IN FULL FOR ANY AND ALL CLAIMS.
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ACCEPTANCE OF THIS PAYMENT SHALL OPERATE AS A RELEASE OF
ALL LIABILITY FOR ALL DAMAGES ARISING OUT OF THE ACCIDENT
OF 06/30/03.” Id.The Jacksons’ former attorney filed a response to the plaintiffs’ motion to
reinstate their case, wherein he states that, on May 4, 2006, the Jacksons had
authorized him to settle their claims against Fikes for $25,000, that he had received
a settlement check for $25,000 on May 22, 2006, and that he had deposited the
check into his trust account that day. Filed with the response was a copy of the
$25,000 settlement check. On May 30, 2006, the Jacksons signed the settlement
agreement and received a check from their attorney's trust account for their
proceeds of the settlement. The Jacksons’ former attorney also filed the signed
copy of the settlement statement, a copy of the check issued from his trust account
with his response, a letter to the Jacksons regarding the disbursement of the
settlement proceeds, a disbursement summary sheet signed by the Jacksons that
itemized the disbursement of the proceeds, and a copy of a letter sent to the
Jacksons in which their former attorney verified the amount of the medical lien.
The settlement agreement provided that, in exchange for $25,000, the
Jacksons agreed to release Fikes and Fikes’s insurer from claims arising out of the
underlying collision. The settlement agreement also states, “the settlement amount
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shall be kept confidential and shall not be disclosed, made public, disseminated,
released, or otherwise referenced, alluded to, or suggested to any person in any
manner whatsoever.” Doc. 27, Ex. A at 2. Additionally, the settlement agreement
prohibited the disclosure “of the settlement or the demands and offers involved in
negotiations and discussions leading up to this settlement.” Id. The settlement
agreement further prohibited any “statement or implication that the settlement is
greater or lesser than any specified amount, or any other direct or indirect
quantification of the settlement amount.” Id.The Jacksons’ former attorney stated that he was notified of two contracts
that the Jacksons had signed on July 8, 2003, with a healthcare provider, which
created a lien in the amount of $5,585.09 against any settlement proceeds. He
submitted copies of these contracts with his response. In addition to creating a
lien, the contracts state, “I, further authorize my attorney . . . to disclose . . . the
settlement status and amount of any settlement, if requested by [the healthcare
provider] for any reason.” Doc. 28, Doctor's Lien Exs. The contract also provided
that, at the time of settlement, the balance due would be paid in full, but that
payment was not contingent on settlement. The Jacksons’ attorney informed them
that he would have to use the settlement proceeds to pay the amount owed their
healthcare provider. The morning after executing the settlement documents,
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Michelle Jackson returned the trust account check to her attorney’s office and
informed an employee at the office that they no longer wished to settle.
The district judge denied the Jacksons’ motion to reinstate their case. The
judge explained that the Jacksons, pro se, stated that they had rejected and not
consummated the settlement. Their counsel and Fikes, however, submitted copies
of the settlement agreement, executed by the Jacksons, and evidence that the
Jacksons had accepted a check from Fikes for settlement of their claims.
Eleven business days later, on July 11, 2006, the Jacksons moved for
reconsideration of the order denying their pro se motion for reinstatement. They
did not dispute that their attorney had received the settlement check and deposited
it into his trust account, nor did they dispute that they had signed the settlement
agreement. Instead, they argued that they did not instruct their attorney to mail the
executed settlement documents, that they did not authorize their attorney to submit
the notice of settlement, and that they did not authorize their attorney to enter into a
settlement on their behalf or to accept the settlement check. Essentially, the
Jacksons argued that fraud and misrepresentation on part of their attorney to the
court made the settlement agreement void.
The Jacksons further contended that they had repudiated the settlement
agreement. The settlement agreement provided that the settlement would remain
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confidential, and that confidentiality was a material part of the settlement
agreement. The contracts that the Jacksons had signed with their healthcare
provider authorized the Jacksons’ attorney to disclose the amount of settlement to
the healthcare provider. By entering into the contract with their healthcare
provider, the Jacksons argued that they had refused to keep the settlement
confidential and had repudiated the settlement agreement.
The district judge denied the motion to reconsider. She reasoned that, even
though the Jacksons had argued that they did not authorize their attorney to submit
the notice of settlement and did not authorize him to mail the executed settlement
documents, they did execute the settlement agreement and other documents related
to the settlement, and they had accepted a check drawn on their attorney’s trust
account. Based on these acts, the judge rejected the Jacksons’ argument that they
did not realize they were consummating the settlement.
II. DISCUSSION
The Jacksons argue that the district judge erred by enforcing a settlement
agreement that was obtained through fraud, accident, or mistake. They also
contend that the settlement agreement was not valid because there was a dispute
over material terms of the agreement; they did not intend to execute the settlement
agreement; the settlement agreement conflicted with their respective contracts with
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their healthcare provider; and the district judge had ordered the breach of the
confidentiality provisions of the settlement agreement. The Jacksons further argue
that the district judge erred by failing to hold an evidentiary hearing concerning the
settlement agreement.
The Jacksons did not specify whether their motion for reconsideration was
filed pursuant to Federal Rule of Civil Procedure 59(e) or 60(b). Because their
motion was filed eleven business days after the district judge entered her order, it
is treated as if it were filed pursuant to Rule 60(b). Mahone v. Ray, 326 F.3d 1176,
1177-78 n.1 (11th Cir. 2003). We review a district judge’s denial of relief under
Rule 60(b) for abuse of discretion. Waddell v. Hendry County Sheriff’s Office,
329 F.3d 1300, 1309 (11th Cir. 2003). Under an abuse-of-discretion analysis, “'we
must affirm unless we find that the district court has made a clear error of
judgment, or has applied the wrong legal standard.'” Amlong & Amlong, P.A. v.
Denny’s, Inc., 457 F.3d 1180, 1188 (11th Cir. 2006) (citation omitted).
Additionally, an appeal from a Rule 60(b) motion is limited to the denial of that
motion and does not bring up the underlying judgment for review. American
Bankers Ins. Co. of Fla. v. Northwestern Nat’l Ins. Co., 198 F.3d 1332, 1338 (11th
Cir. 1999).
Rule 60(b) provides:
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[T]he court may relieve a party . . . from a final judgment, order, or
proceeding for the following reasons: (1) mistake, inadvertence,
surprise, or excusable neglect; (2) newly discovered evidence which
by due diligence could not have been discovered in time to move for a
new trial . . .; (3) fraud . . . , misrepresentation, or other misconduct of
an adverse party; (4) the judgment is void; (5) the judgment has been
satisfied, released, or discharged . . .; or (6) any other reason justifying
relief from the operation of the judgment.
Fed. R. Civ. P. 60(b). Under Rule 60(b)(3), the movant “must prove by clear and
convincing evidence” that the judgment was obtained by “fraud,
misrepresentations, or other misconduct” by an adverse party, and must show that
the conduct prevented the full presentation of the movant’s case. Waddell, 329
F.3d at 1309.
Alabama courts have found consent to a settlement agreement where there is
evidence that a party is informed of the terms of the settlement agreement and
agrees to it. See Sayre v. Dickerson, 179 So.2d 57, 66-67 (Ala. 1965) (finding
consent to a settlement agreement where a party’s testimony in open court
provided evidence that settlement agreement was agreed upon, even though
consent was later withdrawn and characterized as made under protest). Under
Alabama law, repudiation of a contract requires “'words or acts evincing an
intention to refuse performance within the future time allowed by the contract.'”
Coaker v. Washington County Bd. of Educ., 646 So.2d 38, 41 (Ala. Civ. App.
1993) (citation omitted). A settlement agreement, however, may not be repudiated
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and will be enforced by the courts. Id. at 41-42. “A settlement agreement will be
reopened only for accident, mistake, or fraud.” Id. at 42. If a settlement
agreement was obtained by fraud, then the entire agreement may be set aside. Id.“'The elements of fraud are (1) a false representation (2) of a material
existing fact (3) reasonably relied upon by the plaintiff (4) who suffered damage as
a proximate consequence of the misrepresentation.'” Waddell & Reed, Inc. v.
United Investors Life Ins. Co., 875 So.2d 1143, 1160 (Ala. 2003) (citation
omitted). Under Alabama law, even an “innocent misrepresentation” can
constitute fraud if it “concerns an existing material fact upon which the plaintiff
relied” that proximately resulted in damage. Coaker, 646 So.2d at 42.
The settlement agreement and contracts with the Jacksons’ healthcare
provider were before the district court. The contracts with the Jacksons’ healthcare
provider created a lien against any settlement proceeds that the Jacksons received
and authorized the Jacksons’ attorney to disclose the settlement status and amount
of settlement if requested by either a doctor or the clinic that treated the Jacksons.
These contracts were executed by the Jacksons on July 8, 2003. It is undisputed
that the Jacksons executed the settlement agreement with Fikes on May 30, 2006.
The settlement agreement provided that the amount of the settlement be
confidential.
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There is no evidence that the confidentiality provision was breached or
would be breached by either the Jacksons or their attorney. The medical liens
authorize the Jacksons’ attorney to communicate the settlement amount, if
requested by the healthcare provider. The Jacksons’ attorney admits that he
verified the amount of the lien, but there is no evidence that he was asked to
disclose the settlement amount or that he did disclose the settlement amount.
Additionally, the district judge did not order disclosure of the settlement amount.
The Jacksons presented no evidence that the settlement agreement was
obtained through fraud or misconduct by any of the parties. They have shown no
false representation. The Jacksons rely on a provision in the contracts that they
executed with their healthcare provider that has the potential to conflict with the
confidentiality requirements of their settlement agreement. The district judge did
not abuse her discretion in denying the Jacksons’ motion for reconsideration
because they provided no evidence that the settlement agreement was procured
through fraud, misrepresentation, or misconduct by any party.
The Jacksons also have challenged the validity of the settlement agreement.
They argue on appeal that they did not intend to enter into the settlement
agreement because they had previously signed a contract that conflicted with it.
Not only did the Jacksons, with the assistance of their counsel, review the
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settlement agreement before they executed it, but also the settlement check was
endorsed, and it was deposited into their attorney’s trust account.1
Under Alabama law, a settlement agreement may not be repudiated. Coaker,
646 So.2d at 41. Where there is evidence that a party is informed of the terms of
the settlement agreement and agrees to it, a court will find consent to the settlement
agreement. See Sayre, 179 So.2d at 66-67. The Jacksons do not dispute that they
executed the settlement agreement. The settlement agreement reads in part, “The
undersigned . . . hereby acknowledge that they have read and understand this
Release and Confidential Settlement Agreement and execute it freely with the
express knowledge and consent of counsel for the undersigned.” Doc. 27, Ex. A at
3. The Jacksons also signed a Disbursement Summary Sheet itemizing the
disbursement of the settlement proceeds, and they accepted a check drawn on their
attorney’s trust account for those proceeds.
The Jacksons did not support their motion for reinstatement with any
evidence and argued only that they had rejected the settlement offer and did not
consummate the settlement. In their motion for reconsideration, the Jacksons
argued that they did not consummate the settlement agreement because they did
not authorize their attorney to mail the signed settlement documents or file a notice
1
The Jacksons’ attorney endorsed the settlement check with their permission.
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of settlement with the court. The district judge did not abuse her discretion in
denying the Jacksons’ motion for reconsideration because the evidence supports
the conclusion that the Jacksons consummated the settlement agreement.
To the extent that the Jacksons argue that the district judge erred by
enforcing the settlement agreement that conflicted with the contracts with their
healthcare provider, and that the district judge ordered the breach of the settlement
agreement, we disagree. The settlement agreement and the contracts with their
healthcare provider do not conflict, and there is no evidence that any party
breached the settlement agreement. The Jacksons presented no evidence that their
attorney disclosed the settlement amount, and the contracts that the Jacksons
signed with their healthcare provider obligated their former attorney to disclose
any settlement amount if requested. The record shows only that their attorney
verified the amount of the lien. The Jacksons also fail to show anything in the
record to support their conclusion that the district judge ordered the breach of the
settlement agreement. The district judge did not abuse her discretion in denying
the Jacksons’ motion for reconsideration on the basis that the settlement agreement
conflicted with the contracts with their healthcare provider.
The Jacksons also argue that “there was a substantial factual dispute as to the
terms of the settlement.” Appellant's Br. at 1. They fail to state or show any terms
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in the settlement agreement over which there was a dispute as to the meaning. The
Jacksons reviewed with their attorney the settlement agreement, which states the
settlement amount, and they signed it. Accordingly, their argument as to the terms
of the settlement agreement is without merit.
Finally, the Jacksons argue for the first time on appeal that the district judge
erred by failing to hold an evidentiary hearing on the settlement agreement. There
is no indication in the record that the Jacksons ever requested an evidentiary
hearing in the district court. Generally, we will not consider an issue unless it was
raised in the district court, and the alleged failure to hold an evidentiary hearing on
the settlement agreement does not fall within one of the exceptions to that rule.
Narey v. Dean, 32 F.3d 1521, 1526 (11th Cir. 1994). Therefore, we will not
address the district judge’s failure to hold an evidentiary hearing.
III. CONCLUSION
The Jacksons have appealed the district judge's order denying their motion
for reconsideration under Rule 60(b) to reinstate their underlying diversity action.
As we have explained, they have provided no evidence of fraud, misrepresentation,
or other misconduct by any party, nor did they provide any evidence under any
other permissible reason for relief pursuant to Rule 60(b) that would require
reconsideration of the district judge’s order. Because the district judge did not
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abuse her discretion in denying the Jacksons’ motion for reconsideration, we
AFFIRM.
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