Settled Too Soon in Colorado? How Early Insurance Offers Can Be Void, And Why Denver Victims Are Most at Risk
Insurance companies may make you early settlement offers in your case in an attempt to pressure you to take less money. Everyone knows, insurance companies don’t want to pay whats fair. There are certain circumstances in which this is a violation of either a specific Colorado law or other common law principles. When that happens, there is a chance that you may be able to void the agreement. A personal injury attorney in Colorado at The Frickey Law Firm can fight on your behalf. My advice is: Never settle your case without an attorney. However, if you did, and the insurance company violated the law, you maybe able to get back in and get what’s fair.
Fight back against the insurance company by scheduling a free initial consultation with a Colorado personal injury lawyer at The Frickey Law Firm by calling us at 303-237-7373. We can help you go on the offensive when the insurance company has wrongfully put you on the defensive. Let our attorneys look at your case and any proposed settlement. The call is free.
When you have been injured in an accident, you may not know your legal rights. You may think that the insurance company has power over you in that they can dictate how much money you get for your injuries. You may be especially vulnerable to their tactics because you are facing a desperate financial situation, and you need the money. As such, Denver personal injury victims are very much at risk of deceptive and questionable insurance company tactics that are aimed at getting you to take less money than you are otherwise due for your damages. Don’t be tricked by the insurance carrier, call a lawyer.
Settlement Agreements Are Typically Final When They Are Signed
Anytime that you settle a personal injury case, the insurance company is getting something from you in exchange for money. What is most important to them is that they are released from any further liability in connection with your claim. The rule of thumb is that you do not get “two bites at the apple” when it comes to settling a personal injury case. Once you have accepted the money from the insurance company, you cannot come back for more in the future if you did not get enough compensation initially.
However, there are some very limited exceptions to the finality of a personal injury settlement that could allow you to seek to void the agreement itself in court. Nonetheless, these exceptions are very strictly construed because public policy is in favor of the certainty that a release clause provides. Still, if circumstances requiring the voiding of a settlement agreement are present, you can and should fight to undo the contract and seek more money.
In general, there may be reasons why you can void a settlement and escape the release clause. One common reason why settlements may be void is that there was a mutual mistake at the time that it was agreed upon and signed. Here, the mutual mistake is often that the full extent of your injuries was not completely known at the time that the insurance company reached a settlement agreement with you. Neither of you would know the exact scope of your damages because your health condition was not entirely apparent when you signed the settlement. This fact alone should keep the insurance company from trying to rush you into a settlement agreement, but it does not always prevent this conduct.
Voiding a Settlement Agreement for a Mutual Mistake
This is often the most commonly litigated point when plaintiffs are trying to void a settlement agreement. For example, in the case of Scotten v. Landers, the Colorado Supreme Court did not uphold a settlement agreement because the plaintiff’s condition was much worse than initially thought at the time the settlement agreement was signed. Both the plaintiff and the insurance company believed that the only injury at issue was fractured ribs and bruising. Because a quick settlement agreement was signed, neither party knew that the accident victim had also suffered a ruptured spleen. Here, the court allowed the plaintiff to seek additional compensation for the more severe injuries because both parties had made a mutual mistake of fact.
Other Reasons to Challenge a Settlement Agreement
There are other reasons why you may be able to void a settlement agreement if you signed it too soon that include the following:
- Duress: The insurance company may have made threats to persuade you to sign a settlement agreement. Then, you would not have reached an agreement under your own volition and free will, meaning that it could never have been valid from the beginning.
- Lack of Capacity: You need to have a suitable level of mental capacity to be able to enter into any type of contract. If you were seriously injured, and you were not really able to focus on your legal situation, you may be able to challenge the settlement agreement. The argument would be that your mental health situation that was the result of your injuries kept you from being in the right mind to enter into a by then contract.
- Fraud: Similarly, you also cannot enter into a binding legal agreement when your signature is based on false information or misrepresentations that were given to you by the other side. If the insurance company lied about a material fact during settlement negotiations, you may be able to challenge the settlement due to fraud.
There Are Circumstances in Which the Insurance Company Cannot Pressure You
There is one specific protection that you have under Colorado law that protects you in certain circumstances. One common insurance company tactic is to “ambush” a personal injury victim when they are in the hospital,,or when they are in the throes of dealing with an injury. to pressure them into signing a settlement agreement. This practice is strictly prohibited by C.R.S. § 13-21-301. The law states that the insurance company must wait thirty days from the incident that caused the injury to either attempt to negotiate a settlement or obtain a release from the accident victim. If the insurance company negotiates a settlement in violation of the law, it would be considered void.
Of course, you would not be rushed or pressured into signing an early settlement agreement when you have already hired a personal injury lawyer. These quick and very low settlements come when you have been directly pressured by the insurance company and do not have the help of a personal injury attorney. However, you can always contact a personal injury lawyer later in time if you believe that the settlement agreement that you reached should be void.
Contact a Colorado Personal Injury Law Firm
If you have been injured in an accident, or you realize that you signed a settlement agreement that should never have been considered valid, speak to a personal injury lawyer in Colorado at The Frickey Law Firm. We can wage a vigorous legal battle on your behalf. You can schedule a free initial consultation with a Colorado personal injury attorney by filling out an online contact form or by calling us today at 303-237-7373.
Attorney Janet Frickey wants to do the right thing. An impassioned litigator and client advocate for more than 40 years, Ms. Frickey is the owner and managing attorney of The Frickey Law Firm who focuses in workers’ compensation and personal injury. Learn more here.