Tag archives: Settlement

Acceptance of settlement offer must be unconditional

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)

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

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

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