When Is a Georgia Car Accident Settlement Legally Binding?
Most auto accidents in Georgia result in some kind of settlement between the injured victims and the negligent driver’s insurance company. By law, all Georgia drivers must carry and maintain a minimum amount of auto insurance coverage. And it is common for the victims to propose a settlement for the limits of that coverage.
Georgia law strictly regulates such settlement offers. Under the current version of the law, which the legislature adopted in 2024, a settlement offer must contain certain “material terms,” including the proposed amount of payment, a date to accept the offer, and whether the victim releases some or all of their potential personal injury claims arising from the accident. While the parties may agree to additional settlement terms beyond what is required by the statute, the 2024 amendments make clear that the victim cannot require acceptance of any “immaterial terms” in order to create a binding agreement.
Court of Appeals: No “Oral” Statement Requirement in Statute
Here is an illustration of what this rule means in practice. Recently, the Georgia Court of Appeals upheld a trial judge’s decision holding that the plaintiff in a personal injury case, Torres v. Pineda, entered into a binding settlement agreement arising from the parties’ car accident. The defendant’s liability for the accident was not disputed; his vehicle struck the plaintiff’s car in a head-on collision.
At the time, the defendant was driving his father’s car, which State Farm insured. In July 2024, shortly after the new Georgia settlement rules took effect, the plaintiff’s attorney presented a settlement offer to State Farm. The plaintiff agreed to a limited liability release against the defendant in exchange for a payment equal to the limits of the State Farm policy, which was $25,000. A month later, State Farm replied, accepting all of the “material terms” and sending a check for $25,000.
The plaintiff, however, rejected the check and claimed that State Farm had failed to comply with all of the terms of the settlement offer. Specifically, State Farm’s acceptance included a written statement, made under oath, confirming that it had disclosed all of the relevant insurance coverage available to the defendant. Such a statement is one of the “material terms” specified in the 2024 statute.
What the plaintiff took issue with was the form of the statement. The settlement offer required an oral statement under oath as opposed to a written statement. The Court of Appeals said that was immaterial. The statute simply required a statement under oath. By providing a written statement, State Farm complied with the material terms of the settlement offer and thus created a binding settlement agreement. For that reason, the trial court properly dismissed the plaintiff’s personal injury lawsuit against the defendant.
Contact an Atlanta Auto Accident Lawyer
Dealing with insurance companies is just one many legal hassles that victims struggle to deal with following a serious car crash. Our Atlanta auto accident attorneys can assist you in this process and help you obtain fair compensation for your injuries. Contact Morain & Buckelew, LLC, today at (404) 448-3146 today to schedule a free consultation.
Source:
scholar.google.com/scholar_case?case=562974129833005228