TRAVELERS INSURANCE COMPANY, APPELLANT,
v.
REBECCA CARR HORTON, APPELLEE
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Travelers Insurance Company appealed a declaratory relief judgment in which the trial court ruled that an insured, Rebecca Carr Horton, retained the right to proceed with arbitration on her uninsured motorist claim because no valid settlement agreement had been formed. The appellate court affirmed, holding that Horton's failure to return the signed release and present the settlement draft for payment prevented formation of a binding settlement contract.
The court held that no valid settlement agreement was formed because Horton failed to communicate her acceptance of the settlement by returning the signed release to Travelers and did not present the draft for payment. Accordingly, Horton retained the right to proceed with arbitration under the terms of her insurance policy, and the trial court properly awarded her reasonable attorney's fees.
[1] A settlement agreement is not effectuated when an insured signs a release and receives a draft but neither presents the draft for payment nor returns the signed release t…
[2] The validity and effect of a settlement and release are governed by contract law.
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Join FLexlaw to unlock all legal intelligence“The validity and effect of a settlement and release are governed by contract law.”
Establishes the legal framework for evaluating whether a binding settlement was formed.
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Join FLexlaw to unlock all legal intelligenceHorton held an insurance policy with Travelers that included uninsured motorist coverage. Travelers offered to settle Horton's uninsured motorist clai…
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PER CURIAM.
In this appeal, appellant/plaintiff Travelers Insurance Company appeals from a final judgment rendered in favor of its insured, appellee/defendant Rebecca Carr Horton, in an action for declaratory relief in which Travelers unsuccessfully sought to prohibit Horton from proceeding with arbitration on her uninsured motorist claim by attempting to enforce a settlement agreement allegedly entered into between the parties.
The trial judge, in his final judgment, determined that Horton had the right to proceed with arbitration, in accordance with the terms of her insurance policy, as a settlement had not been effectuated. Further, the trial judge held that Horton was entitled to an award of reasonable attorney’s fees for her defense of the action.
After a careful review of the record, it is our opinion that final judgment was properly entered. While appellee did sign a release furnished by Travelers and was actually issued a draft, she neither presented the draft for payment nor returned the signed release to appellant. The validity and effect of a settlement and release are governed by contract law. Florida Education Association, Inc. v. Atkinson, 481 F. 2d 662 (5th Cir. 1973). Appellee, having failed to communicate her acceptance of the settlement by mailing the release to Travelers, did not bind herself to the terms of the proposed agreement of settlement. See Kendel v. Pontious, 244 So. 2d 543 (Fla. 3d DCA 1971). Further, an award of reasonable attorney’s fees in this declaratory action was not improper. James Furniture Manufacturing Company, Inc. v. Maryland Casualty Company, 114 So. 2d 722 (Fla. 3d DCA 1959); Section 627.428, Florida Statutes (1977).
Accordingly, for the above reasons, the final judgment is affirmed.
Affirmed.
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State Farm Mut. Auto. Ins. Co. v. Stack, 543 So. 2d 782 (Fla. 3d DCA 1989)…discrete piece of litigation which is concerned with that issue qualifies for fees under the statute. Lane v. Waste Management, Inc., 432 So. 2d 70 (Fla. 4th DCA 1983), pet. for review denied, 441 So. 2d 633 (Fla.1983); Travelers Ins. Co. v. Horton, 366 So. 2d 1204 (Fla. 3d DCA 1979); State Farm Mut. Auto. Ins. Co. v. Anderson, 332 So. 2d 623 (Fla. 4th DCA 1976), cert. denied, 345 So. 2d 428 (Fla.1977). Compare, e.g., Dixie Farms, Inc. v. Hertz Corp., 343 So. 2d 633, 636 (Fla. 3d DCA 1977) (right to fees for s…
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Fla. Rock & Tank Lines, Inc. v. The Cont'l Ins. Co., 399 So. 2d 122 (Fla. 1st DCA 1981)…gations of the parties under the contract of insurance. The statute does not require that the contested issue be that of coverage. Gulf Life Insurance Co. v. Urquiaga, 251 So. 2d 904 (Fla.2d DCA 1971). See also Travelers Insurance Company v. Horton, 366 So. 2d 1204 (Fla. 3rd DCA 1979). Continental brought the present action alleging that under a contract of insurance executed by the insurer, it was entitled to reimbursement. Appellants successfully defended this suit and received a judgment against the insure…
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The Travelers Indem. Co. v. Walton, 384 So. 2d 939 (Fla. 3d DCA 1980)…Gardens, Inc. v. Florida Inland Theaters, Inc., 239 So. 2d 602 (Fla.2d DCA 1970); §§ 682.05 and 682.06(3), Fla.Stat. (1975). We also affirm the decision of the trial court awarding attorney’s fees to the insured. Travelers Insurance Co. v. Horton, 366 So. 2d 1204 (Fla.3d DCA 1979); Bankers & Shippers Insurance Co. v. Gonzalez, 234 So. 2d 693 (Fla.3d DCA 1970); and § 627.428, Fla.Stat. (1975). The decision of the trial court denying petition to vacate award of arbitration is affirmed. . After the hearing…
Previewing 3 of 10 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Fla. Educ. Ass'n, Inc. v. Atkinson, 481 F.2d 662 (5th Cir. 1973)
- James Furniture Mfg. Co., Inc. v. Md. Cas. Co., 114 So. 2d 722 (Fla. 3d DCA 1959)
- Kendel v. Pontious, 244 So. 2d 543 (Fla. 3d DCA 1971)