Tag archives: Settlement

Compromise: settlement agreements

By Paulette Khumalo on March 24, 2023 Posted in Insurance

An agreement of compromise is the settlement of disputed obligations by agreement. A compromise exists where parties agree to settle previously disputed or uncertain obligations. Like any other agreement, a compromise is based on the contractual rules of offer and acceptance, with each party conceding something, either by diminishing their alleged claim or by conceding … Continue reading

Effect of settlement agreement

By Patrick Bracher (ZA) on March 11, 2020 Posted in Drafting tips

Ten years after the 2010 World Cup the Supreme Court of Appeal has given judgment in a dispute between the South African Football Association and a travel business relating to travel arrangements for the competition. The parties had a settlement agreement which was in ‘full and final settlement’ of the dispute relating to whether SAFA … Continue reading

Acceptance of settlement offer must be unconditional

By Patrick Bracher (ZA) on April 3, 2019 Posted in General

The Supreme Court of Appeal has reaffirmed the principle that where a party alleges that a compromise (settlement) has been effected in an exchange of correspondence it must be proved that the offer of compromise was accepted. The acceptance must be absolute, unconditional and identical with the offer. Otherwise there is no consensus and no … Continue reading

Settlement not authorised by insurers is not an occurrence (Australian case)

By Patrick Bracher (ZA) on May 14, 2018 Posted in Insurance

A refurbishment contract entered into by the insured led to arbitration which the insured settled without the insurer’s authority on the basis of a ‘cap and collar’, capping the award if the claimant was successful and agreeing to a payment of USD2 million if the claim failed. The claim failed and the insured claimed the USD2 million … Continue reading

UK Court rules that settlement with a concurrent wrongdoer does not release other wrongdoers unless it satisfies the whole claim

By Justin Malherbe (ZA) on October 31, 2016 Posted in General

A UK High Court has decided that settlement of a claim for injuries sustained by a sub-contractor on a construction project would only extinguish a further claim against a hospital for alleged negligent treatment received following the work accident if the settlement satisfied the whole claim. The defendant hospital brought an application to declare the … Continue reading

Insurers liable for bad faith settlement in USA

By Patrick Bracher (ZA) on March 25, 2014 Posted in Insurance

A US court held Liberty Mutual Fire Insurance Co liable for nominal and punitive damages for settling claims close to the deductible limit in their own interests rather than the interests of the insured. A window and door manufacturer was sued by a number of homeowners associations complaining of water damage from windows and doors … Continue reading