Murphey v. Mid-Century Insurance Co

2014 WL 2619073 (2014)

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Nature of the Case

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Facts

D issued automobile liability insurance coverage for Wiggs (D). Lash, a Special General Adjuster for D was assigned as the adjuster to handle P's claim against it stemming from a motor vehicle accident involving P and Wiggs that occurred on February 4, 2013. Campbell, counsel for P, sent Lash medical and other records in support of P's claim and demanded payment of $366,618.24 'so that suit may be avoided.' Lash sent Campbell an e-mail stating in part: 'As I indicated on your voice-mail, against your demand of $366,618.24, we offer $116,000. We look forward to your response.' Campbell responded by e-mail: I am authorized to reduce P's demand to $310,000. It appears to her that your offer does not take into account the likelihood of punitive damages if it is determined (as seems likely) that your insured was texting and driving. Do you have a recorded statement from your insured that you can produce? The $310,000 demand will expire by its terms at 5:00 p.m. central time on October 15, 2013. At 6:10 p.m. on October 10, Lash responded by e-mail: 'Against $310,000, we provide a counteroffer of $221,000.... On October 11 at 1:13 p.m., Campbell responded: 'Kevin, the offer of $221,000 is hereby accepted. Thank you for your professionalism on this claim.'[5] At 3:03 p.m. that same day, Mr. Lash wrote to Mr. Campbell by e-mail: 'Terry, My apology. The offer for $221,000 was a typographical error. The offer is and always was to be $121,000.' The maximum settlement authority that Lash received from his manager was $160,000. P filed a Petition to enforce the settlement agreement. D asserts a counterclaim for rescission. D maintains that such contract was retracted and rescinded by D promptly upon notice of the typographical error.