Bridge City Family Medical Clinic, P.C. v. Kent & Johnson, LLP
Oregon Court of Appeals
244 P.3d 867 (Or. Ct. App. 2010)
Bridge City Family Medical Clinic (plaintiff), believing its former attorneys at Kent & Johnson (defendant) had committed malpractice, negotiated by letter with the firm's malpractice insurer (PLF) over a settlement; through a series of back-and-forth offers and counteroffers on price and a proposed mutual release, Bridge City's final letter offered to settle for $19,000, and PLF responded by agreeing to pay that exact amount, conditioning payment on Bridge City signing a mutual release. Bridge City never signed the release and instead sued Kent & Johnson for malpractice; the trial court dismissed the suit, finding the parties had already formed a binding settlement, and Bridge City appealed.
Whether an unqualified acceptance of a reasonably certain settlement offer creates a binding contract even without a signed, formal written agreement.