May 31, 2007

Insurance Fair Conduct Act

The governor signed the Insurance Fair Conduct Act into law on May 15, 2007. The major component is the availability of treble damages for an "unreasonable" denial of coverage or benefits or violation of certain claims handling regulations. The full text of the statute as enacted is posted here: http://www.leg.wa.gov/pub/billinfo/2007-08/Pdf/Bills/Session%20Law%202007/5726-S.SL.pdf. More details to follow.

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May 7, 2007

Open-Ended Settlement Offer Expires upon Announcement of Arbitration Award

Sherrod v. Kidd (April 17, 2007)

The plaintiff was injured by a dog bite. The defendants made an open-ended settlement offer. The plaintiff proceeded to arbitration, which resulted in an award less than the settlement offer. The plaintiff then purported to accept the settlement offer, and the trial court enforced the settlement agreement.

On appeal, the plaintiff argued that the consideration for the settlement was the same before and after arbitration -- her promise to dismiss the lawsuit. The court of appeals reversed and held that the offer expired when the arbitrator announced the award. The court reasoned that "[i]mplicit in an offer (and an acceptance) to settle a personal injury suit is the party's intent to avoid a less favorable result at the hands of a jury, a judge or, in this case, an arbitrator."

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Disclaimer: This blog is maintained as a free information service and its contents are not intended to constitute legal advice or opinion. Statements herein are made solely by the author and are not attributable to Carney Badley Spellman, P.S. Use of this blog does not create an attorney-client relationship. The blog may fail to accurately or comprehensively represent the law or the topics discussed.













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