Morta v. Korea Insurance Corp

840 F.2d 1452 (9th Cir. 1988)

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Nature of the Case

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Facts

Morta suffered a collision that caused damage to his car and himself. The car was a total loss. Morta was examined by a physician and assured that he was fine and was released from the hospital. Morta continued to suffer pain and was treated by a second doctor and told that the pain would subside. Korea Insurance Corp. offered $900 to settle the claim. Morta claimed that the settlement had three components; $300 for his car, $250 for lost work and $250 for pain and suffering. Morta was not satisfied with that amount claiming the car had a blue book value of $2,300 alone. Morta then consulted an attorney who advised him that the $900 was a good deal. Morta signed a standard release form. A week after the accident, Morta began to fell ill and dizzy and soon thereafter collapsed and underwent emergency surgery for a blood clot in his brain. The medical bills amounted to $11,000 all paid by Morta's insurer FHP, Inc. Morta (P) sued to recover those damages and disavowed the release on the ground that D's agent fraudulently misrepresented its contents. The release was held invalid, and judgment was entered for $14,600. D appealed.