The Georgia Court of Appeals recently reiterated the fundamentals of contract law within the context of insurance settlement negotiations in Yim v. Carr. In this case, the plaintiff offered to settle within policy limits and to release liability against specific persons or entities. The defendant’s insurer agreed to the settlement in principle, but sought clarification about who would be included in the release. Ultimately, the court held that this did not constitute “acceptance” of the offer, but instead characterized the request for clarification as a rejection and counteroffer.
The underlying case involved an automobile collision in which the plaintiff sustained bodily injury that resulted in a lawsuit against the defendant driver and the driver’s parents.