Goldbard v. Empire State Mutual Life Ins. Co.
Supreme Court of New York, Appellate Division
171 N.Y.S.2d 194 (1958)
After injuring his hand, Goldbard (plaintiff) filed a disability claim with Empire Mutual (defendant); when the parties' dispute went before a state insurance department representative, Empire Mutual offered $800 to settle if Goldbard surrendered his policy, which Goldbard initially rejected but later that day told the representative he would accept, along with agreeing not to seek renewal. Empire Mutual then sent Goldbard a letter requiring him to formally surrender the policy and sign a release to receive payment; Goldbard never responded and instead sued. The trial court awarded him $2,800, and the Appellate Term reduced that to $800 based on the oral settlement.
Whether an insured who indicates informal acceptance of an insurer's settlement offer, but later refuses to sign a release or formally surrender the policy, has made an enforceable agreement limiting his recovery to the settlement amount.