Centric-Jones Co. v. Hufnagel

Justice YOLLACK

dissenting only as to part III:

In declining to apply fundamental principles of contract law to offers of settlement, the majority concludes that, pursuant to section 13-17-202(3), 6A C.R.S. (1992 Supp.), “an offer of settlement remains open for the entire ten-day period, regardless of whether the offer is rejected.” Maj. op. at 946. I disagree. I conversely find that well settled canons of statutory construction and fundamental principles of contract law dictate that an offer of settlement made pursuant to section 13-17-202(3) is revocable. I also conclude that, in the present case, Centric-Jones rejected the settlement offer made by the defendants, and that, once rejected, Centric-Jones could not subsequently accept the offer. Alternatively, I conclude that the district court order granting summary judgment in favor of De Leuw removed De Leuw from the action and destroyed Centric’s power to accept the joint offer of settlement. I respectfully dissent.

I.

In 1987, Centric-Jones Co. (Centric) entered into a contract with the Colorado State Department of Highways (the Department), wherein Centric agreed to act as a general contractor for various construction projects planned at the intersection of *9516th Avenue and interstate highway 1-25.1 The Department retained Parsons De Leuw, Inc. (De Leuw), to perform engineering services on the same construction projects.

As a result of its contract with the Department, Centric entered into various subcontracts for performance of services related to the construction projects. One of the subcontractors, Fought & Co., filed an action against Centric, seeking damages incurred when the projects fell behind schedule. Fought & Co. prevailed in its action and obtained a judgment against Centric. In December 1991, Centric commenced an action against the Department, alleging that the Department had breached its contract with Centric. Centric sought to recover damages from the Department for which Centric was liable as a result of the action commenced by Fought & Co.

In March of 1992, Centric added De Leuw as a defendant to its action against the Department. Centric alleged that the delays in the projects were caused by errors made by De Leuw in preparing documents as part of the design and construction process. On June 24, 1992, De Leuw filed a motion for summary judgment, contending that Centric’s claims against it were barred by the statute of limitations.

On September 23, 1992, Centric, the Department, and De Leuw participated in a settlement conference during which Centric suggested that the action be settled for approximately $1,780,000. The Department and De Leuw did not respond to Centric’s demand at that time.

On September 30, 1992, the Department and De Leuw served upon Centric a joint offer of settlement in the amount of $750,-000, pursuant to section 13-17-202(3). On October 1, Centric submitted a counteroffer of settlement in an amount of approximately $1,438,000.2

On October 8, 1992, the district court granted De Leuw’s motion for summary judgment. De Leuw in turn informed Centric via telephone that De Leuw considered all prior settlement negotiations and offers null and void. De Leuw additionally sent a letter by facsimile to Centric, confirming De Leuw’s position. On the following day, October 9, both De Leuw and the Department served upon Centric a “Withdrawal of Joint Offer of Settlement.” At approximately 4:00 p.m. on October 9, Centric served an acceptance of the joint offer of settlement on De Leuw. Centric also sought an order from the district court directing the clerk of the court to enter judgment upon the accepted joint offer of settlement.

On October 14, 1992, the district court held a hearing on Centric’s motion for an order directing entry of judgment. During the hearing, the district court found that the attempted withdrawal of the joint offer of settlement preceded Centric’s acceptance of the offer. The district court stated “that an offer under Subsection 3 of 13-17-202 also should be seen to operate as an ‘option for consideration’ and that the attempted withdrawal by the Defendants pri- or to the expiration of ten days after the service of the offer is ineffectual.” The district court ultimately concluded, however, that, when it dismissed De Leuw, “the joint settlement offer could not be seen as being effectual, since there was not another Defendant besides the State to be involved in the settlement.”

Centric subsequently petitioned this court for a rule to show cause pursuant to C.A.R. 21. We issued a rule to show cause, and the majority now makes the rule absolute, finding that the district court erred as a matter of law. Maj. op. at 944. I disagree, and would hold that both canons of statutory construction and principles of contract law render the joint offer of settle*952ment ineffectual as Centric rejected the offer prior to its attempted acceptance.

II.

A.

As the majority notes, the issue we must address is whether an offer of judgment made pursuant to section 13-17-202(3) is revocable. See maj. op. at 946. The majority states that section 13-17-202(3) provides in part:

At any time more than ten days before the trial begins, a party defending against a claim may serve upon the adverse party an offer of settlement to the effect specified in his offer, with costs then accrued. If within ten days after the service of the offer, the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance, together with proof of service thereof, and thereupon the clerk shall enter judgment^]

Maj. op. at 944-45 (quoting section 13-17-202(3), 6A C.R.S. (1992 Supp.)). That section, titled “Award of actual costs when offer of settlement was made,” additionally provides that:

An offer not accepted shall be deemed withdrawn and evidence thereof is not admissible except in a proceeding to determine costs. If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree shall pay the costs incurred after making of the offer. The fact that an offer is made but not accepted does not preclude a subsequent offer. When the liability of one party to another has been determined by verdict or order or judgment, but the amount or extent of the liability remains to be determined by further proceedings, the party adjudged liable may make an offer of settlement, which shall have the same effect as an offer made before trial (except with respect to costs already incurred) if it is served within a reasonable time not less than ten days prior to the commencement of hearings to determine the amount of extent of liability.

§ 13-17-202(3), 6A C.R.S. (1992 Supp.) (emphasis added).

The section is silent as to whether offers of judgment are revocable. In order to resolve the issue, we are thus required to interpret and construe subsection (3). See Watters v. Pelican Int’l, Inc., 706 F.Supp. 1452 (D.Colo.1989); Matter of Estate of Roybal, 826 P.2d 1236 (Colo.1992). The majority, however, conducts a truncated analysis of that portion of the statute quoted in its opinion. The majority also declines to apply principles of contract law, and relies instead on Whitney v. Anderson, 784 P.2d 830 (Colo.App.), cert. denied (1989), Mallory v. Eyrich, 922 F.2d 1273 (6th Cir.1991), and Janicek v. Hinnen, 34 Colo.App. 68, 522 P.2d 113 (1974), in reaching its conclusion. Maj. op. at 946-47. I do not find this approach persuasive.

Whitney and Janicek were decided under C.R.C.P. 68 and prior to the adoption of section 13-17-202(3). In Whitney, the court of appeals was called on to review a post-trial award of costs in a negligence action. Whitney, 784 P.2d at 831-32. Pursuant to C.R.C.P. 68, the trial court in Whitney awarded the plaintiff costs of $569.62 and the defendant costs of $7,139.77. Id. at 832. On appeal, the plaintiff contended “that the defendant’s offer of judgment was untimely under C.R.C.P. 68, thus precluding the trial court from applying the cost-shifting provisions of the rule.” Id.

The Whitney court stated that, under C.R.C.P. 68, a plaintiff had ten days in which to accept an offer of judgment once such an offer was extended. Id. The Whitney court held that, based on the unique circumstances surrounding the offer, the defendant’s offer was not untimely under C.R.C.P. 68. Id. The Whitney court did not expressly address the issue of whether offers made pursuant to C.R.C.P. 68 were revocable.

The Janicek court confronted the issue of whether the defendants had properly preserved their right to appeal an order of costs assessed against them pursuant to C.R.C.P. 68. The Janicek court stated that the purpose of C.R.C.P. 68 was “to encour*953age acceptance of reasonable offers of judgment.” Id. at 73, 522 P.2d at 116. The Janicek court concluded that the defendant’s appeal was timely filed, and that the plaintiff was entitled to receive costs under the rule. Id. Like the Whitney court, the Janicek court did not squarely address the issue of whether offers of judgment under C.R.C.P. 68 were revocable.

Since neither the Whitney nor the Jani-cek courts engaged in statutory construction of section 13-17-202(3) in order to determine whether offers of settlement are revocable, I do not find that either case provides guidance for resolution of the issue presently before the court. I find that a review of the section’s history, including the rule of procedure, provides an appropriate basis for an interpretation of the section. I also find that Mallory supports the application of principles of contract law in the interpretation process.

B.

Colorado Rule of Civil Procedure 68, titled “Offer of Judgment,” provided a means by which courts could assess costs against a litigant who rejected a reasonable offer of settlement. See C.R.C.P. 68. The literal language of the rule was substantially similar to subsection (3) of section 13-17-202. As expressed in Janicek, the purpose of C.R.C.P. 68 was to encourage acceptance of reasonable offers of settlement. Janicek, 34 Colo.App. at 73, 522 P.2d at 116. C.R.C.P. 68 was repealed on July 12, 1990.

On May 31, Í990, the General Assembly enacted Senate Bill 90-150, titled “Courts and Court Procedure.” In section 1 of the act, the General Assembly declared that

the legal system needs to be improved in order to provide justice for all citizens. The general assembly recognizes that litigants often encounter an unreasonable amount of delay in the resolution of disputes and in obtaining settlement or a judicial determination of their legal actions .... The general assembly finds that the costs associated with delays in the resolution of civil actions and from late payments of judgments makes the prices of goods and services higher than they would be otherwise. The general assembly finds that Colorado’s legal system requires these changes in order to improve Colorado’s economic competitiveness in an era of global markets where foreign competitors typically have substantially lower legal costs embedded in the goods and services they produce. The general assembly finds that the changes encompassed in this act are designed to make the legal system more effective and efficient by discouraging the filing of unnecessary litigation, by encouraging settlement, and by encouraging more timely resolution of disputes^]

Act approved May 31, 1990, ch. 100, sec. 1, 1990 Colo.Sess.Laws 848. In section 14 of the act, the General Assembly adopted section 13-17-202. Ch. 100, sec. 14, § 13-17-202, 1990 Colo.Sess.Laws 852. The section currently appears in part 2 of article 17, which is titled “Attorneys Fees in Civil Actions in General.” § 13-17-202, 6A C.R.S. (1992 Supp.). Part 2 consists of three sections, all of which concern awards of attorneys fees and costs in certain cases. §§ 13-17-201 to -203, 6A C.R.S. (1987 & 1992 Supp.). Unlike the former rule 68, section 13-17-202, as enacted in 1990, contains two additional subsections which provide as follows:

(l)(a) Notwithstanding any other statute to the contrary, in any civil action of any nature commenced or appealed in any court of record in this state:
(I) If the plaintiff makes an offer of settlement which is rejected by the defendant and the plaintiff recovers a final judgment in excess of the amount offered, then the plaintiff shall be awarded actual costs accruing after the offer of settlement to be paid by the defendant.
(II) If the defendant makes an offer of settlement which is rejected by the plaintiff and the plaintiff does not recover a final judgment in excess of the amount offered, then the defendant shall be awarded actual costs accruing after the *954offer of settlement to be paid by the plaintiff.
(b) For purposes of this section, “actual costs” shall not include attorney fees.
(2) When comparing the amount of any offer of settlement to the amount of a final judgment actually awarded, any amount of the final judgment representing interest subsequent to the date of the offer in settlement shall not be considered.

§ 13-17-202(1), (2), 6A C.R.S. (1992 Supp.). Neither the court of appeals nor this court has construed section 13-17-202.

Our primary task in construing a statute is to give effect to the intent of the General Assembly. Dunlap v. Colorado Springs Cablevision, 829 P.2d 1286 (Colo.1992). “Where a statute is silent as to a particular issue, questions of interpretation are illuminated by legislative intent.” Watters v. Pelican Int'l, Inc., 706 F.Supp. 1452, 1456 (D.Colo.1989). We first look to the language of the statute itself, and give effect to statutory terms in accordance with their commonly accepted meanings. Boulder County Bd. of Equalization v. M.D.C. Constr. Co., 830 P.2d 975 (Colo.1992). However, technical terms or terms of art used in a statute are presumed to have their technical meaning. Huffman v. Caterpillar Tractor Co., 908 F.2d 1470, 1476 (10th Cir.1990) (citing Board of Assessment Appeals v. Arlberg Club, 762 P.2d 146, 152 (Colo.1988)).

Section 13-17-202(3) provides:

At any time more than ten days before the trial begins, a party defending against a claim may serve upon the adverse party an offer of settlement to the effect specified in his offer, with costs then accrued. If within ten days after the service of the offer, the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance, together with proof of service thereof, and thereupon the clerk shall enter judgment. An offer not accepted shall be deemed withdrawn and evidence thereof is not admissible except in a proceeding to determine costs. If the judgment finally obtained by the offeree is not more favorable than the offer, the offeree shall pay the costs incurred after making of the offer. The fact that an offer is made but not accepted does not preclude a subsequent offer. When the liability of one party to another has been determined by verdict or order or judgment, but the amount or extent of the liability remains to be determined by further proceedings, the party adjudged liable may make an offer of settlement, which shall have the same effect as an offer made before trial (except with respect to costs already incurred) if it is served within a reasonable time not less than ten days prior to the commencement of hearings to determine the amount of extent of liability.

§ 13-17-202(3), 6A C.R.S. (1992 Supp.). The section does not expressly address whether offers of settlement are revocable if made within a ten-day period following service of the offer upon the adverse party. The section merely provides that a party may make an offer of judgment more than ten days prior to the commencement of trial. The section also provides that “[a]n offer not accepted shall be deemed withdrawn,” and that the making of one offer not accepted does not preclude a party from making a second offer. Id. The terms “offer” and “acceptance” are terms of art; in order to give effect to the legislative intent expressed in the Legislative Declaration of the Act, we must turn to fundamental principles of contract law.

Application of the law of contracts to settlements is consistent with this court’s previous decisions regarding settlements generally.3 See Van Schaack Holdings, *955Ltd. v. L. C. Fulenwider, 798 P.2d 424, 431 (Colo.1990) (“A settlement results from a meeting of the minds and an exchange of sufficient consideration.”); Trimble v. City and County of Denver, 697 P.2d 716 (Colo.1985) (applying contract principles to analysis of a covenant not to sue); Cross v. District Court, 643 P.2d 39, 41 (Colo.1982) (“A compromise and settlement is, in effect, a contract to end judicial proceedings.”); H.W. Houston Constr. Co. v. District Court, 632 P.2d 563, 565 (Colo.1981) (“A settlement and compromise is, in effect, a contract to end judicial proceedings. In order for a settlement to be binding and enforceable, there must be a ‘meeting of the minds’ as to the terms and conditions of the compromise and settlement.” (citation omitted)). Additionally, “the General Assembly has specifically provided that in the construction of statutes the common law shall remain in full force until repealed by legislative authority.” Powder Horn Constructors, Inc. v. City of Florence, 754 P.2d 356, 369 (Colo.1988) (relying on section 2-4-211, IB C.R.S. (1980)). Since section 13-17-202 does not contain a provision repealing the common law of contracts, I find the common law principles useful in construing the statute in the present case.

It is fundamental that an offer gives an offeree a power to accept the offer. Restatement (Second) of Contracts § 35(1) (1981) [hereinafter Restatement ]. Accordingly, “[a] contract cannot be created by acceptance of an offer after the power of acceptance has been terminated.” Restatement § 35(2). A power of acceptance may be terminated by either rejection of the offer, or by a counteroffer. Restatement §§ 36, 38, 39. Thus, we have stated that, “ ‘[w]hen an offer has been rejected it ceases to exist and cannot thereafter be accepted.... This principle is most commonly illustrated where a counteroffer is made by offeree. This operated as a rejection of the original offer.’ ” Baldwin v. Peters, Writer & Christensen, 141 Colo. 529, 531-32, 349 P.2d 146, 147-48 (1960) (quoting 1 Willis ton on Contracts § 51); see Nucla Sanitation Dist. v. Rippy, 140 Colo. 444, 448, 344 P.2d 976, 979 (1959) (quoting Hall v. Gehrke, 117 Colo. 223, 185 P.2d 1016 (1947) (quoting Salomon v. Webster, 4 Colo. 353, 361 (1878))) (“ ‘ “Upon this point the law is clear. Unless the proposition made by one is accepted by the other, without any modification whatever, no contract arises. In such case there is no concurrence of parties. ‘If the acceptance modifies the proposition in any particular, it amounts to nothing more than a counter proposition. It is not in law an acceptance which will complete the contract.’ ” ’ ”); Goodwin v. Eller, 127 Colo. 529, 536-37, 258 P.2d 493, 496 (1953) (quoting Iselin v. United States, 271 U.S. 136, 46 S.Ct. 458, 70 L.Ed. 872 (1926) (“ ‘It is well settled that a proposal to accept, or an acceptance, upon terms varying from those offered, is a rejection of the offer, and puts an end to the negotiation, unless the party who made the original offer renews it, or assents to the modification suggested.’ ”).

Applied to the language of section 13-17-202(3), I conclude that offers of judgment are revocable. The common law rule provides that an offer creating a power of acceptance is terminated by either rejection or a counteroffer. Section 13-17-202(3) does not, by its terms, abrogate this common-law rule. The language of the section stating that “an offer not accepted shall be deemed withdrawn” and that an offer “made but'not accepted does not preclude a subsequent offer” is consistent with appli*956cation of this rule. If a party serves an offer of settlement upon an adverse party who in turn either rejects the offer, or proposes a counteroffer, then the first offer is deemed withdrawn. The party serving the first offer of settlement is not precluded from making a second offer of settlement once the power of acceptance created in the first offer is terminated.

The gravamen of the section, and of part 2 of article 17 generally, is to govern both awards of costs and fees, and dispositions of cases wherein one party offers and the adverse party accepts an offer of judgment. Section 13-17-202, along with sections 13-17-201 and 13-17-203, effectuates the expressed legislative intent of encouraging settlement of cases in order to both reduce the costs of litigation and expedite relief to victims. See Act approved May 31, 1990, ch. 100, sec. 1, 1990 Colo.Sess. Laws 848. This intent is best effectuated by construing section 13-17-202(3) as permitting a flexible approach to settlement negotiations, affording litigants a greater opportunity to settle disputes. Construing the section to create a period in which an offer of settlement is irrevocable is not consistent with this intent insofar as it locks the parties into one offer of settlement; under this construction, neither party may be inclined to make or accept one such offer where there is no room to negotiate. I thus conclude that, in order to effectuate the General Assembly’s intent, the statute does not mandate that offers of settlement, once made, are not revocable within a ten-day period.4

C.

In the present case, De Leuw and the Department served an offer of settlement pursuant to section 13-17-202 on Centric on September 30, 1992, in the amount of $750,000. On October 1, Centric submitted a counteroffer of settlement in the amount of approximately $1,438,000. By submitting a counteroffer, Centric terminated its power to accept the offer of settlement served by the Department and De Leuw on September 30. Neither the Department nor De Leuw served a second offer of settlement on Centric. Thus, on October 9, no offer of settlement by the Department and De Leuw existed, giving Centric the power of acceptance.

III.

After finding that offers of settlement are irrevocable under section 13-17-202(3), the majority concludes that “[t]he trial court erred as a matter of law in holding that the entry of summary judgment for De Leuw voided the offer of judgment.” Maj. op. at 13. I disagree. Conversely, I conclude that the district court correctly found that the offer of settlement was ineffectual because: (1) De Leuw and the Department, by withdrawing their joint offer of settlement, revoked the joint offer of settlement; and (2) such a finding is consistent with the legislative declaration of intent underlying section 13-17-202.

It is well settled that an offeree’s power of acceptance is terminated when an offer- or manifests an intent not to enter into the contract. Restatement § 42 (defining revocation by offeror). Thus, “[t]he word ‘revoke’ is not essential to a revocation. Any clear manifestation of unwillingness to en*957ter into the proposed bargain is sufficient.” Id. at cmt. d.

In the present case, both the Department and De Leuw served a “Joint Offer of Settlement” upon Centric on September 30, 1992. On October 8, 1992, De Leuw informed Centric that it considered all prior settlement negotiations and offers null and void on the ground that the district court granted summary judgment in favor of De Leuw. On October 9, 1992, both De Leuw and the Department served upon Centric a “Withdrawal of Joint Offer of Settlement.” Centric subsequently attempted to accept the joint offer of settlement. I find that Centric’s acceptance is invalid, on the ground that both the Department and De Leuw — the only defendants in this action— manifested an unequivocal intent not to enter into the proposed joint offer of settlement prior to Centric’s attempted acceptance.5 Their manifestation revoked the joint offer, thus terminating its existence.

Additionally, I conclude that the district court order granting summary judgment in favor of De Leuw on October 8, 1992, had the effect of both removing De Leuw from the action as a “party” and destroying Centric’s power to accept the joint offer of settlement. I find that to hold otherwise ignores the express legislative intent of section 13-17-202.

As previously discussed, the legislative intent underlying section 13-17-202 states

that litigants often encounter an unreasonable amount of delay in the resolution of disputes and in obtaining settlement or a judicial determination of their legal actions.... [T]he changes encompassed in this act are designed to make the legal system more effective and efficient by discouraging the filing of unnecessary litigation, by encouraging settlement, and by encouraging more timely resolution of disputes.

The majority’s holding — that an offer of settlement remains in effect for a predetermined period of time, and that an entry of summary judgment in favor of a party during that interval has no effect — defeats the legislative goal of timely resolution of disputes by imposing a stasis on the litigation and stripping the district court of any power to resolve a dispute while an offer of settlement remains open.6 See maj. op. at 947-48. This conclusion is not supported by the plain language of section 13-17-202. The section does not provide that offers of settlement shall remain open for a defined interval, during which time a district court may not enter summary judgment in favor of a party. Recognition of the district court’s power to grant summary judgment permits resolution of disputes in a timely and cost-effective manner. See Preuss v. Stevens, 150 Ariz. 6, 721 P.2d 664, 665 (Ariz.Ct.App.1986) (holding that a trial court order granting summary judgment prior to acceptance of an offer of settlement nullified the offer of settlement in a case where summary judgment was entered the day before a party attempted to accept an offer of settlement); see, e.g., Braham v. Carncross, 514 So.2d 71 (Fla.Dist.Ct.App.1987) (holding that a party could not accept an offer of settlement after entry of a jury verdict on the ground that it would totally defeat the ends of justice and allow a mockery of the judicial system).

IV.

Based on the foregoing reasons, I conclude that Centric could not accept the joint offer of settlement on October 9, 1992, and *958that the district court order granting summary judgment in favor of De Leuw was appropriate. Accordingly, I find that the district court did not err in its determination that “the joint settlement offer could not be seen as being effectual.” I would discharge the rule to show cause.

I am authorized to say that Justice SCOTT joins in this concurrence and dissent.

. The facts presented were culled from several district c.ourt orders and from an affidavit of Eugene R. Commander, counsel for Parsons De Leuw, Inc., as no record of proceedings was filed in this case.

. Centric did not reference a counteroffer in its petition; however, both the October 14 district court order and the Commander affidavit reference a counteroffer submitted by Centric on October 1.

. Mallory v. Eyrich, 922 F.2d 1273 (6th Cir.1991), is instructive on this point. Mallory involved an interpretation of Fed.R.Civ.P. 68 in an action filed by a group of residents challenging a county-wide scheme for election of municipal court judges. Id. at 1275. The defendants served an offer of settlement on the plaintiffs, which the plaintiffs accepted; the defendants subsequently moved to have a judgment entered on the offer set aside pursuant to Fed.R.Civ.P. 60(b)(6). The Mallory court was confronted with the issue of whether a rule 60(b) order setting aside a rule 68 judgment was immediately appealable. Id. at 1277. The Mallory court *955did not address whether offers of settlement under rule 68 were revocable. Rather, after concluding that rule 60(b)(6) orders were ap-pealable, the Mallory court considered the propriety of the order in that case. Id. at 1279. In so doing, the Mallory court stated:

In cases construing Rule 68 judgments where the parties disagree as to what was intended, the courts apply contract principles. See[,] for example, Radecki v. Amoco Oil Co., 858 F.2d 397, 400 (8th Cir.1988) (“[t]o decide whether there has been a valid offer and acceptance for the purposes of Rule 68, courts apply the principles of contract law"); Johnson v. Univ. College of the Univ. of Alabama, 706 F.2d 1205, 1209 (11th Cir.), cert. denied, 464 U.S. 994, 104 S.Ct. 489, 78 L.Ed.2d 684 (1983) (for a valid Rule 68 agreement to have been formed, there must be a “meeting of the minds” under elementary principles of contract law.)

. I similarly conclude that offers of settlement made pursuant to section 13-17-202(3) do not create option contracts under the terms of the section. The Restatement defines option contracts as follows:

(1) An offer is binding as an option contract if it
(a) is in writing and signed by the offeror, recites a purported consideration for the making of the offer, and proposes an exchange on fair terms within a reasonable time; or
(b) is made irrevocable by statute.
(2) An offer which the offeror should reasonably expect to induce action or forbearance of a substantial character on the part of the offeree before acceptance and which does induce such action or forbearance is binding as an option contract to the extent necessary to avoid injustice.

Restatement (Second) of Contracts § 87 (1981). The section neither expressly designates that offers of settlement create option contracts, nor implies that such offers, once made, are held open in the absence of consideration for the option. Since Centric gave no consideration to De Leuw or to the Department, I find that an option contract was not created in this case.

. Additionally, I find an alternate basis for this holding premised on the rule that, when acceptance is conditioned on the availability of a party, then the unavailability of that party will terminate the offeree's power to accept. See 1 Witliston on Contracts § 5.1, at 625 (1990). Thus, as a joint offer of settlement, I find the “availability” of all of the defendants in the action to be a condition precedent to acceptance of the joint offer.

. The parties do not argue, and therefore I do not consider, whether this holding impermissi-bly restricts the inherent power of district courts to resolve disputes. See Halaby, McCrea & Cross v. Hoffman, 831 P.2d 902, 907 (Colo.1992) ("The inherent powers which courts possess consist of all powers reasonably required to enable a court to efficiently perform its judicial functions.”); Mizar v. Jones, 157 Colo. 535, 537, 403 P.2d 767, 769 (1965) (holding that courts exist to settle disputes between parties).