Douthwright v. Northeast Corridor Foundations

Douthwright (plaintiff) was injured when concrete pylons rolled off a truck owned by Northeast Corridor Foundations (defendant). Douthwright, Northeast, and a co-defendant reached an oral settlement fixing Douthwright's damages at $3.2 million, with $2.5 million allocated to Northeast and 12% annual interest if not timely paid. Northeast's primary insurer paid $1 million, but its secondary insurer refused to pay the remaining $1.5 million. After Douthwright moved for a default judgment over the unpaid balance, Northeast sent a $1.5 million check labeled as an accord and satisfaction of its debt - covering only principal, no interest. The trial court awarded Douthwright over $40,000 in unpaid interest, reasoning Douthwright was immediately entitled to payment once the parties' obligations came due under the oral settlement.