COURT UPHOLDS VERBAL SETTLEMENT IN RECORDED TELEPHONE STATEMENT

People who try to handle their own injury claims often fail. This is illustrated in the case of Windell Gilbert vs. Cherish Fitz. The case was heard in the Court of Appeals in the Fifth District of Texas at Dallas. The case number is 05-16-00218-CV. View the case.

In the Gilbert case, a person who was hurt tried to talk to the insurance adjuster on their own. They talked on the phone and agreed to take $500 and payment for their medical bills from the day of the accident.

The injured person’s 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 talk about the accident and injuries. The plaintiff agreed to give a recorded statement over the phone. In the statement, the plaintiff agreed with the adjuster to settle the case for reasonable medical expenses on the day of the crash, plus $500.

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 with a check for $500, which contained release language on the check. 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 victim’s insurance company countersued for breaking a deal to settle. Ultimately, the insurance company won the case by summary judgment and was awarded $10,000 attorneys’ fees on top of the verdict.

Lessons to Learn in Handling Your Injury Claim in Texas

There are some easy lessons for someone handling their personal injury case from this fact situation:

Do not consider a settlement soon after an accident if you are unsure of your injuries or your need for future medical expenses.
Do not 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 oral settlement agreement 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 your “reasonable medical expenses” can be a nightmare as you are letting them determine what is reasonable and do not know what amounts they will pay.

If you agree to a deal in Texas, you may be stuck with it!

In summary, this case shows that if a person injured in an accident agrees to a settlement over the phone, they may have to stick with it even if it’s not a good or fair agreement.

One common mistake personal injury victims make is giving a recorded statement to an insurance adjuster soon after an accident before knowing the full extent of their injuries.

Some people might want to work together with the insurance company. In that case, it’s best to give a statement to the adjuster without recording it. We advise you not to make any statements without first talking to a qualified attorney.

No law requires giving recorded statements to the other person’s insurance company pre-litigation. This case shows how insurance companies can exploit people who try to handle their cases without a lawyer.

Here are 5 things to know about car accident settlements in Houston.