It Just Became More Difficult For Plaintiffs To Scream ‘Counter-Offer'

The California Court of Appeal for the Sixth Appellate District recently analyzed the issue of an agreed upon amount of a settlement and memorializing the settlement terms. In the case CSAA Ins. Exchange v. Hodroj (2021) Cal.App.LEXIS 1009 (ordered published on December 1, 2021), Plaintiff's counsel wrote to the insurer stating Plaintiff would settle for the policy limits as long as certain conditions were fulfilled, including providing proof of insurance and stating the policy limits, accepting the offer within 21 days, and delivering a check within 21 days of acceptance of the offer.

The offer also stated the insurer could condition its acceptance on Plaintiff signing a written release. Fifteen days later, the insurer sent a written acceptance of the offer, including proof of insurance and the policy limits, as well as a proposed written release of all claims for the Plaintiff to sign. The check was sent separately. In response, Plaintiff's counsel reneged on