DeRossett Enters. Inc. v. General Elec. Capital Corp.

The trial court erred in awarding attorneys' fees to the defendant without a hearing and without supporting the award with the requisite findings.

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DeRossett Enterprises, Inc. “DeRossett” appeals from the trial court’s order granting a motion by General Electric Capital Corporation “GE Capital” to enforce a settlement agreement between the parties. DeRossett also appeals the trial court’s award to GE Capital of attorney fees incurred in enforcing the agreement. DeRossett contends that, for various reasons, the parties never entered into a binding settlement agreement. Because we agree with the trial court that there was a binding settlement agreement, we affirm that portion of the trial court’s order enforcing the agreement. However, we reverse that portion of the trial court’s order awarding attorney fees to GE Capital and remand for further proceedings. We apply a de novo standard of review to a trial court’s order on a motion to enforce a settlement agreement.1 Because the issues raised are analogous to those in a motion for summary judgment, in order to succeed on a motion to enforce a settlement agreement, “a party must show the court that the documents, affidavits, depositions and other evidence in the record reveal that there is no evidence sufficient to create a jury issue on at least one essential element of the appellant’s case.”2 Thus, we view the evidence in a light most favorable to the non-moving party, DeRossett.3

GE Capital filed suit against DeRossett to recover a credit card debt of $5,643.07. DeRossett counterclaimed, seeking class action status. GE Capital’s counsel and DeRossett’s former counsel, Henry Stringfellow, discussed settlement of the claims. GE Capital contends that it offered to pay DeRossett $15,000 plus forgiveness of the debt owed on the credit card, which DeRossett disputes. On April 16, 2004, however, Stringfellow sent GE Capital a letter accepting a settlement offer for $15,000 and attorney fees. GE Capital treated this letter as a counteroffer, which it accepted by letter dated April 23, 2004. At the time, GE Capital believed that DeRossett’s attorney fees were approximately $19,000.

DeRossett Enters. Inc. v. General Elec. Capital Corp.

The trial court erred in awarding attorneys' fees to the defendant without a hearing and without supporting the award with the requisite findings.

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