Casemetrix, Llcv.Sherpa Web Studios, Inc.
CaseMetrix sued its web host over the loss of a workers’ compensation database, asserting negligence and breach of contract. Sherpa later made a statutory offer of settlement. CaseMetrix rejected it and recovered a verdict below the statutory threshold, after which the trial court awarded Sherpa attorney fees. The Georgia Court of Appeals reversed. It held that the offer was internally inconsistent: one paragraph limited it to tort claims, while another required dismissal of all claims, including the contract claim. Because the offer could reasonably be read in more than one way, it was ambiguous and did not satisfy Georgia’s offer-of-settlement statute. The court did not reach the fee-allocation or confidentiality issues because the ambiguity independently invalidated the fee award.
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