Articles Tagged with settlement

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Dealing with insurance companies following a car accident often involves a good deal of back-and-forth negotiations. If you are the victim seeking compensation, you have the right to make a conditional offer, that is, to release some or all potential claims against the insured person in exchange for a timely payout. Typically this payout will be for the maximum benefits provided under the insurance policy.

Grange Mutual Casualty Company v. Woodard

What if you condition a settlement offer on receiving payment the insurer sends but is not received by the specified deadline? A federal appeals court in Atlanta recently addressed this question in a case arising from a tragic 2014 car accident here in Marietta.

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Most car accident lawsuits in Georgia are handled by the negligent driver’s insurance company. If an insurer refuses to settle a personal injury claim “in bad faith,” said insurer may be liable for any judgment against the insured in excess of the policy’s normal limits. In other words, the insurance company may not place its own interests ahead of those of its policyholders by dragging its feet to avoid settling an apparently valid personal injury claim.

Linthicum v. Mendakota Insurance Company

But an insurance company’s obligation is only to act reasonably when attempting to negotiate a settlement. It is not necessarily liable just because no settlement is reached. A recent decision by a federal judge in Savannah illustrates this point.

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Dealing with insurance companies is often the first legal issue that needs to be managed following a car accident. While many cases are amicably resolved with insurers without the need for litigation, accident victims always need to tread carefully lest they inadvertently sign away their legal rights. As a recent Georgia Court of Appeals decision illustrates, when you propose to settle a case you must be prepared to live with the consequences.

Partain v. Pitts

The plaintiff and defendant in this case were drivers involved in a car accident. The plaintiff sued the defendant, alleging the latter’s negligence caused the accident and the plaintiff’s resulting injuries. Four days after filing suit, the plaintiff’s attorney sent a settlement letter to the claims adjuster for the defendant’s car insurance carrier. The letter said the plaintiff would agree to sign a limited liability release in exchange for $50,000, which was the coverage limit of the defendant’s insurance policy. The letter further said the offer would only remain good for two weeks, and the plaintiff’s attorney had to receive a check by the deadline, otherwise the settlement offer was rescinded.