People who try to handle their injury claims often fail. This is illustrated in the case of Windell Gilbert vs. Cherish Fitz., which highlights how a verbal settlement with an adjuster can be binding in Texas. Understanding how these agreements work is crucial to avoiding costly mistakes and protecting your right to fair compensation.
In the Gilbert case, a person injured in a car accidentย attempted to discuss the matter with the insurance adjuster independently. They talked on the phone and agreed to take $500 and payment for their medical bills from the day of the accident.
The injured personโs car was hit from behind by another driver, and he was taken to the hospital in an ambulance. At the hospital, he was treated for a neck injury, a fractured wrist, and a fractured rib.
A week later, the insurance adjuster for the driver who hit the plaintiff called to discuss the accident and the injuries. The plaintiff agreed to provide a recorded telephone statement. In the statement, the plaintiff and the adjuster agreed to settle the case. They decided on reasonable medical expenses on the day of the crash. Additionally, they agreed to $500.
Unfortunately, the oral settlement was found binding on the victim, even though it was totally inadequate. If you have been injured in an accident, always talk with an experienced Houston personal injury lawyer before considering any settlementย
Read More: How to Negotiate a Settlement with an Insurance Claims Adjuster
In Texas, Verbal Agreements with the Adjuster May be Binding
The adjuster carefully documented the oral agreement in the telephone statement.
The insurance company promptly sent a letter to the victim, along with a $500 check that included release language. The victim never cashed the check upon advice from an attorney he hired to help him with the case.
A lawyer for the victim sued for fair compensation, and the victimโs insurance company countersued for breach of a settlement agreement. Ultimately, the insurance company prevailed on summary judgment. It was awarded $10,000 in attorneysโ fees in addition to the verdict.
Read More: Should I Give an Insurance Statement After a Car Accident?
Lessons About Verbal Settlement With Adjuster Binding in Texas
There are some easy lessons for someone handling their personal injury case from this factual situation:
- Do not consider a settlement soon after an accident if you are unsure of your injuries or your need for future medical expenses.
- Donโt give a recorded statement to an adverse insurance adjuster unless you are prepared to accept the consequences of doing so.
- If you agree to an oralย settlement agreementย with the adjuster, you may be held to that agreement regardless of how it may impact you.
- Agreeing to let the adverse insurance company pay yourย โreasonable medical expensesโ can be a nightmare. You are allowing them to determine what is reasonable and do not know the amounts they will pay.
- Hire anย experienced personal injury attorney in Houston.
If you agree to a deal in Texas, you may be bound by it.
In summary, this case demonstrates that if an injured person agrees to a settlement over the phone, they may be required to accept it. This is true even if the agreement is not good or fair.
A common mistake personal injury victims make is talking to an insurance adjuster too soon after an accident. This often involves giving a recorded statement. They often do this before understanding the full extent of their injuries.
Some people might want to work with the insurance company. In that case, itโs best to state the adjuster without recording it. We advise you not to make any statements without first consulting a qualified attorney. Adjusters can useย many tactics against inexperienced claimants.
No law requires giving recorded statements to the other personโs insurance company pre-litigation. This case illustrates how insurance companies can exploit individuals who attempt to handle their cases without a lawyer.
Here areย 5 things to know about car accident settlementsย in Houston.
Want to Speak With a Top-Rated Injury Lawyer?
Call theย Baumgartner Law Firmย atย 281-587-1111ย for a no-obligation consultation on aย Texas personal injury claim.
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6711 Cypress Creek Pkwy, Houston, TX, 77069
(281) 587-1111
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