Question

Minors.D.V.G. (a minor) was injured in a one-car auto accident in Hoover, Alabama. The vehicle was covered by an insurance policy issued by Nationwide Mutual Insurance Co. Stan Brobston, D.V.G.’s attorney, accepted Nationwide’s offer of $50,000 on D.V.G.’s behalf. Before the settlement could be submitted to an Alabama state court for approval, D.V.G. died from injuries received in a second, unrelated auto accident. Nationwide argued that it was not bound to the settlement because a minor lacks the capacity to contract and cannot enter into a binding settlement without court approval. Should Nationwide be bound to the settlement? Why or why not?? [Nationwide Insurance Co. v. Wood, 121 So.3d 982 (Ala. 2013)] (See Contractual Capacity.)

Prepare a case brief using the following five (5) separately numbered paragraphs: Facts – This should be a short concise statement of the facts which can be from three to five sentences long. Legal Issue – Usually, this can be a simple one-sentence question. Rules of Law – This is the statement of the law relevant to answering the question posed in the Legal Issue paragraph. No mention of any facts from the case should be in this paragraph. This can be from one to three sentences long. Application or Rationale – This is your persuasive discussion that applies the law from paragraph 3 (Rule of Law) to the Facts in paragraph 1 to support the conclusion you reach in paragraph 5. Conclusion/Decision – This is a one or two sentence statement of your answer to the question posed in paragraph 2.

Answer 1

Nationwide is bound to pay the settlement as on the following reasons:

• Nationwide cannot prevent compensating the deceased from their own failure to perform a necessary action.
• The settlement agreement requires all parties’ consent, which is presented as settlement of $50,000 was agreed.
• The contract was mutually executory as the contemplated hearing was a condition precedent to their performance.
• Minor was not bound by settlement agreement until court approval was obtained, but other party cannot alter or withdraw their offer.
• Nationwide’s argument is that a minor lacks a capacity to contract and cannot enter into binding contract, which is incomplete.
• The promisor must perform the promise unless it is impossible due to the act of God, by the law, or by the other party.