In Louisiana, there are two ways to settle a personal injury claim: 1) sign a written agreement, or 2) agree to an oral settlement in a courtroom in front of a judge. The Louisiana Civil Code is crystal clear that a settlement must "be made in writing or recited in open court.” La. C.C. art. 3072. Those are the only two circumstances that create a valid settlement in Louisiana.
You should never sign a written agreement or cash a settlement check without speaking with an attorney. If you sign an agreement written by an insurance company, or if you cash a check they sent you, then you probably have entered into a full and final settlement of your personal injury case.
A "full and final" settlement means that you have waived all your rights and can never ask for any more money ever again, even if you suffer future damages or have new medical bills. So, you should always speak to an attorney before you sign anything.
You should also be aware that even if you don't sign anything, insurance companies may still use other tactics to delay payment, or even try to refuse payment outright. In a current case our office is handling, the insurance company alleges that our client accepted an unfair, verbal settlement during a telephone call with an insurance adjuster - even though the insurance company admits that our client did not cash any check and did not sign any written settlement agreement.
In other words, the insurance company admits that the requirements for a valid settlement did not occur. Despite that, the insurance company has refused to pay the fair value of our client's claim for over a year. Instead, the insurance company hired an attorney and is litigating the case - wasting our client's time and money, and causing her substantial aggravation. (Sometimes even if the law is on your side, it still takes time (and money!) to reach the fair and appropriate result).
There is one simple way to avoid any dispute about whether you settled your case: speak to an attorney before you talk to the insurance company. In fact, there is no need for you to discuss your injury claim with your insurer at all. We speak to insurance adjusters literally every day, and we are here to help you - unlike the adjusters, whose only job is to pay you as little money as possible. But, if you do end up speaking to an insurance adjuster, assume that everything you say is being recorded, and the adjuster does not have your best interests in mind.
In conclusion, when it comes to settling your case, it's better to be safe than sorry. Follow these simple tips to protect your rights: 1) never sign a document written by the insurance company, 2) never cash a check the insurance company sent you, 3) never discuss a settlement with an insurance adjuster on a recorded call, and 4) always consult with your own attorney before discussing a settlement of your personal injury case.
If you are ever injured by someone else's fault, we would be happy to discuss your claim free of charge. Please feel free to give our office a call or text us and we will set up a free consultation.
