Proposal for Settlement Held Unenforceable Where Conflicts in Release Language

Jun 30, 2017

JUNE 2017

Florida Insurance Matters is a monthly update on Florida insurance-related legal developments by the Colodny Fass Insurance Litigation Practice, recently recognized as the Insurance Litigation Department of the Year in South Florida by the Daily Business Review.

About the Author

Amy L. Koltnow, a Colodny Fass Shareholder, focuses her practice on representing insurance companies in complex insurance litigation and counseling insurers on claims resolution. She has represented insurers in connection with property damage and first-party coverage litigation, claims of “bad faith,” high-risk exposures, class actions and multi-district litigation.

For more information about Ms. Koltnow, click here.

Proposal for Settlement Held Unenforceable Where Conflicts in Release Language

An insurer’s proposal for settlement was found ambiguous and unenforceable because the proposal sought to resolve all claims for relief made in the lawsuit and all claims which could have been raised as “compulsory claims”. However, the release attached to the proposal was more broadly worded and required the insured to release all causes of action arising from the accident. The court held that since the plaintiff may still have had a PIP claim, which was not a compulsory claim, it was unclear whether the PIP claim was intended to be released.

Dowd v. Geico General Ins. Co. (3d DCA June 28, 2017).

Incorporate release language directly in the proposal for settlement to avoid ambiguities.

 

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