10 Fla. L. Weekly Supp. 119b
Insurance — Personal injury protection — Settlement — Enforcement — Where letters between inured’s counsel and her personal injury attorney evince reliance on terms of settlement which does not include any terms of release, and letters between insured’s counsel and insurer’s counsel reflect that a release was not part of the settlement agreement, settlement is enforceable without release — Insurer owes penalty interest from twenty days after date of confirmed settlement agreement
CHERYL WARD, Plaintiff, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant. County Court, 13th Judicial Circuit in and for Hillsborough County, Small Claims Division. Case No. 2000-9176 SC, Division I. December 5, 2002. Charlotte Anderson, Judge. Counsel: Timothy A. Patrick, Timothy A. Patrick, P.A., Tampa, for Plaintiff. Steven D. Manno, Barnett & Associates, for Defendant.
ORDER GRANTING PLAINTIFF’S MOTION TO ENFORCE SETTLEMENT AND MOTION FOR SANCTIONS
THIS CAUSE having come before the Court on November 21, 2002 on Plaintiff’s Motion to Enforce Settlement and Motion for Sanctions. Present before the court were Plaintiff’s counsel, Timothy A. Patrick and Defendant’s counsel, Steven Manno, from Barnett and Associates. The court having heard argument from counsel and being otherwise fully advised in the premises, it is
ORDERED and ADJUDGED as follows:
FINDINGS OF FACTS AND CONCLUSIONS OF LAW
1. This was an action for Personal Injury Protection (PIP) benefits under an insurance policy between the parties and Florida Statute Section 627.736.
2. The court finds the letter dated July 17, 2002 from Defendant’s counsel to Plaintiff’s counsel set forth the terms of the Defendant’s settlement offer and does not include any terms of a release.
3. Plaintiff’s counsel accepted Defendant’s offer as submitted.
4. Another factor considered by the court is the letter July 25, 2002 from Plaintiff’s personal injury attorney, Seymour Honig, to Plaintiff’s counsel, William Rocker. The court found reliance by the Plaintiff, Cheryl Ward and her counsel based upon the terms of the settlement agreement as evidenced by the letter from Mr. Honig to Mr. Rocker.
5. The two letters from Plaintiff’s counsel to defense counsel dated July 25, 2002 and July 31, 2002, respectively, reflect that a release was not part of the settlement agreement.
6. The only terms to the settlement agreement are outlined in the July 17, 2002 from Defendant’s counsel to Plaintiff’s counsel and is enforceable as accepted.
7. The office of Barnett & Associates, P.A., was on notice of the care and precision required in making settlement offers based on the local case, Raymond D. Cities, D.C., P.A. (As assignee of Martha Bootle) vs. United Services Automobile Association, 8 FLW [Fla. L. Weekly] Supp. 391 (Hillsborough County Court April 5, 2001). The court finds that although the facts vary slightly from this case, the legal consequences remain the same.
8. Failure of defense counsel to set forth all of the essential terms in a settlement agreement, specifically the failure to include terms of a release, places defense counsel at risk.
9. The court finds that a settlement offer must state the offer as intended.
10. Florida Statute Section 627.4265 requires 12% interest of settlement proceeds if the insurer does not tender settlement amounts within twenty (20) days of a written settlement. The Defendant thereby owes penalty interest of 12% twenty (20) days from July 22, 2002, the date of the confirmed settlement agreement.
11. The settlement draft is to be tendered within five (5) days from the signed order.
12. Statutory interest will continue to accrue until the settlement check is tendered to Plaintiff’s counsel (allowing three (3) days for mailing time).
13. Counsel for Plaintiff is entitled to attorney’s fees for the necessity of having to file the Motion to Enforce Settlement and Motion for Sanctions and his attendance at the scheduled hearing. The court finds two (2) hours to be reasonable and sufficient attorney’s fees for the preparation of the Motion to Enforce Settlement and Motion for Sanctions and attendance at the hearing. The court finds that $225.00 per hour to be a reasonable hourly rate for Timothy A. Patrick. Thus, Defendant owes Plaintiff’s counsel $450.00 in attorney’s fees as a sanction.
Based upon the above, the Court finds and it is
ORDERED and ADJUDGED that the Plaintiff and Plaintiff’s counsel received the following sums:
(A) statutory interest of 12% beginning twenty (20) days from July 22, 2002, the date of the confirmed settlement agreement;
(B) Attorney’s Fees is awarded to Timothy A. Patrick, P.A. in the amount of $450.00.
FOR WHICH SUMS LET EXECUTION ISSUE.
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