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Cawthorne v. Erie Insurance Group

In a declaratory judgment action brought to determine validity of a settlement agreement, ruling that no valid settlement agreement existed between plaintiff and insurance company affirmed because, by failing to sign required release, plaintiff failed to accept company's settlement offer, and company was within its rights to retract its offer after stated expiration deadline.

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OPINION

� 1 This is an appeal from an order issued in a declaratory judgment action brought by Appellant seeking to determine the validity of a settlement agreement. We affirm.

� 2 Appellant suffered damages when her vehicle was struck by a vehicle driven by Paige A. Mays. Ms. Mays was insured by Appellee (Erie). In her complaint, Appellant alleges that by letter dated August 14, 1998, Erie offered to settle her claim for injuries for the limits of its policy, $15,000. Appellant further alleged that she accepted this offer and that this acceptance was confirmed by correspondence dated August 26, 1998, written to her own insurance company and copied to Erie. After the statute of limitations expired, Erie informed Appellant that it did not intend to honor any claim or past offer of settlement.

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