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Verbal Settlement With Adjuster Binding in Texas

Verbal settlement with adjuster binding in Texas

People who try to handle their injury claims often fail. This is illustrated in the case of Windell Gilbert vs. Cherish Fitz. A verbal settlement with the adjuster could have changed the outcome. 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. 

In the Gilbert case, a person hurt in a car accident tried to talk to 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 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 discuss the accident and the injuries. The plaintiff agreed to give a recorded statement over the phone. 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.

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 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. It was awarded $10,000 in attorneys’ fees on top of the verdict.

Read More: Should I Give an Insurance Statement After a Car Accident?

Lessons to Learn in Handling Your Injury Claim in Texas

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

  1. Do not consider a settlement soon after an accident if you are unsure of your injuries or your need for future medical expenses.
  2. Don’t give a recorded statement to an adverse insurance adjuster unless you are prepared to accept the consequences of doing so.
  3. 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.
  4. Agreeing to let the adverse insurance company pay your “reasonable medical expenses” can be a nightmare. You are letting them determine what is reasonable and do not know what amounts they will pay.
  5. Hire an experienced personal injury attorney in Houston.

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

In summary, this case shows that if someone hurt in an accident agrees to a settlement by phone, they may have to keep 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, 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. Adjusters can use many tactics against inexperienced claimants.

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.

Want to Speak With a Top-Rated Injury Lawyer?

Call the Baumgartner Law Firm at 281-587-1111 for a no-obligation consultation on a Texas personal injury claim.

Baumgartner Law Firm

6711 Cypress Creek Pkwy, Houston, TX, 77069

(281) 587-1111

Post under: Insurance Claims
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Greg Baumgartner, Founder of Baumgartner Law Firm

Since establishing Baumgartner Law Firm in 1985, Greg Baumgartner has built a reputation as one of Houston’s leading personal injury attorneys, dedicated to representing severely injured victims and families who have lost loved ones due to negligence.

Greg holds two law degrees, a distinction earned by less than 1% of all attorneys, demonstrating his exceptional legal expertise. He is also a prestigious Trial Lawyers College graduate, further enhancing his skills in trial advocacy and litigation.

His relentless commitment to legal excellence and client advocacy has earned him recognition from prestigious organizations, including Super Lawyers, the Top 100 Trial Lawyers, and many others.

With decades of experience, Greg has consistently received top peer reviews. He holds a preeminent rating, a testament to his unwavering dedication to securing justice and maximum compensation for his clients.


Baumgartner Law Firm 6711 Cypress Creek Pkwy, Houston, TX, 77069 Call Us at: (281) 587-1111

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