Douthwright v. Northeast Corridor Foundations

805 A.2d 157 (2002)

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Nature of the Case

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Facts

Douthwright (P) filed a motion for a default judgment arising out of the failure of Northeast (D) to pay their full share of an oral settlement agreement. That agreement entitled P to recover $3.2 million as settlement of a tort action for serious injuries he received when a concrete pylon rolled off a truck and crushed his leg. D was obligated to pay $2.5 million of that sum. D’s primary insurer paid $1 million, and D’s excess insurance carrier refused to pay the remaining $1.5 million. P sought a default judgment for the $1.5 million plus interest. D denied that the settlement agreement imposed an obligation upon them to pay immediately. Subsequent to the hearing on the motion, D sent P a check for $1.5 million accompanied by a cover letter. The check represented the principal amount due but did not include interest. P got a final judgment of $40,931.45 for the interest. D appealed.