Dodds v. Dabbs, Hickman, Hill & Cannon LLP

The plaintiff did not establish that he rescinded or attempted to rescind the parties' settlement agreement and his release, as he made no showing that he restored or offered to restore to the defendants any of the $4.6M he received pursuant to the settlement.

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In August 2005, Frank Dodds served upon Savannah Air Center, LLC a business in which he owned a 25 percent interest and upon Jeff Zacharius, Hossein Motlagh, Iraj Shambayati, and Shahin Isad-Doost his alleged co-members of Savannah Air; Savannah Air and Dodds’s alleged co-members of Savannah Air shall hereinafter be referred to collectively as “SAC”, notice of his intent to withdraw as a member of Savannah Air. In May 2007, Dodds and Savannah Air reached a settlement concerning the value of Dodds’s interest in Savannah Air, and Dodds executed a “General Release,” discharging Savannah Air and those in privity with Savannah Air from all claims, demands, rights, and causes of action, concerning matters arising from Dodds’s employment, membership, and ownership in Savannah Air.

Despite the release, Dodds subsequently filed two lawsuits—one in April 2008 which was dismissed and renewed in March 2010 against SAC,1 and another one in September 2010 against an accounting firm Dabbs, Hickman, Hill and Cannon, LLP Savannah Air had retained after Dodds had given SAC his withdrawal notice, but before settlement was reached.2 Dodds claimed that after the settlement he had received tax documents drawn by the accounting firm indicating that some settlement funds had been allocated as income disbursements for the two years following the year of Dodds’s withdrawal notice, that the allocations were contrary to SAC’s pre-settlement representations to Dodds that SAC no longer considered Dodds a member of Savannah Air after Dodds had served his withdrawal notice, and that the allocations exposed Dodds to significant tax consequences.

Dodds v. Dabbs, Hickman, Hill & Cannon LLP

The plaintiff did not establish that he rescinded or attempted to rescind the parties' settlement agreement and his release, as he made no showing that he restored or offered to restore to the defendants any of the $4.6M he received pursuant to the settlement.

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