When Is a Personal Injury Settlement Offer Legally Binding?
Many car accident victims are reluctant to pursue a personal injury claim because they fear a lengthy, drawn-out trial and appeals process. The truth is that the vast majority of Georgia car accident claims are settled out of court. Indeed, the most likely outcome of such cases is for the victim and their attorney to negotiate a settlement with the defendant and their insurance company.
Under recent amendments to Georgia law, when either party to a personal injury case makes a settlement offer, it is now considered an “offer to enter into a bilateral contract.” Previously, a number of Georgia court rulings held that some settlement offers were “unilateral” contracts. With a unilateral contract, the party making the offer could require the other side to indicate their acceptance by performing a specific action. Under the new bilateral contract standard, however, the other side can simply accept the offer by indicating their acceptance of the terms.
Courts Reject Insurance Company Arguments Under Pre-2024 Rules
The new rules took effect in April 2024. This means there are still a number of pending Georgia personal injury cases governed by the previous standard. The Georgia Court of Appeals recently addressed such a case. In Redfearn v. Moore, the plaintiffs filed a wrongful death lawsuit against the defendant after the latter allegedly struck and killed the plaintiffs’ father in a motor vehicle collision.
Prior to filing their wrongful death lawsuit, the plaintiffs sent the defendant a settlement offer that contained a number of terms. As relevant here, the offer demanded the defendant’s insurance company provide “written acceptance” within 31 days and make payment within 41 days. The insurance company also had to draft a limited release that complied with the terms of the offer “exactly as they are specified.” If the defendant or the insurer included any additional terms or conditions, that would constitute a rejection of the offer.
Eight days after receiving the offer, the insurer responded, sending a proposed release and settlement check. The plaintiffs, however, rejected the check, maintaining the proposed release did not follow the terms of their settlement offer. After the plaintiffs filed their lawsuit, the defense filed a motion to enforce what they considered a “binding settlement” with the insurance company.
Both the trial judge and the Court of Appeals rejected the defense’s position. Applying the pre-2024 version of the law, the Court of Appeals explained that this was a unilateral contract offer, which meant acceptance required the insurance company to accept the proposed terms through a specific act, in this case drafting a release that complied with the terms of the plaintiffs’ offer. The insurer failed to do so, therefore no binding contract was formed.
Contact The Spizman Firm Trial Lawyers Today
The outcome of the above case may well have been different had the court applied the 2024 version of the law. This demonstrates the importance of working with an Atlanta personal injury lawyer who is up-to-date on the law and can advise you accordingly of your rights. If you have been injured in an accident and need legal advice, contact The Spizman Firm Trial Lawyers today to schedule a free consultation. We serve clients throughout Georgia including Atlanta, Dunwoody, Alpharetta, Cobb County, Fulton County, Gwinnett County, Johns Creek and Sandy Springs.
Source:
efast.gaappeals.us/download?filingId=499c8161-c706-43e4-94fd-c65a75e2e91b
