Sanford v. State Farm &c. Co

In Sanford v. State Farm &c. Co, 276 Ga. App. 555 (623 SE2d 743) (2005), a liability carrier prepared settlement documents, mistakenly including a dismissal with prejudice against its insured. The plaintiff's counsel signed and filed the documents. When he subsequently realized his error, he prepared a consent order rescinding the dismissal with prejudice, which counsel for the two liability insurers involved signed. State Farm would not agree, however, and the trial court would not grant the motion without all parties' consent. Id. at 556. The court subsequently granted State Farm's motion for judgment on the pleadings, based on the dismissal, but this court reversed, holding that the facts in that case "demonstrate that a clerical error was made by mutual mistake of the parties, resulting in an erroneous judgment." Id. The court in Sanson held that "the trial court abused its discretion by not allowing correction of that error." Id.