December 3, 2021

CSAA Insurance Exchange v. Hodroj (Nov 3, 2021, H046475)

A personal injury claimant made a policy limits demand to the at-fault party’s insurer. The offer was made on certain conditions and permitted the insurer to require a release of all bodily injury claims. The insurer accepted and complied with all conditions, but offered a release covering both property damage and bodily injury claims. The claimant asserted this constituted a counteroffer, and filed a personal injury suit. The insurer responded by filing a lawsuit for breach of contract.

The Court of Appeal concluded that a contract had been formed and the claimant had breached it by filing the personal injury lawsuit. While the claimant “was under no obligation to sign a release that was inconsistent [with] what he agreed to,” “a proposed writing that does not accurately reflect the terms of the agreement does not unwind the entire deal. The contract formed by the parties’ offer, acceptance, and consideration is still enforceable.”