Pre-Suit Settlement Negotiations in Georgia Personal Injury Cases
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A settlement negotiated before suit is a private agreement, but Georgia’s Code shapes it at several points. For a claim arising from a motor vehicle collision, it fixes what an attorney’s written offer must contain, how the offer must be sent, and what the recipient must do to avoid a later claim that it failed to settle. Other statutes attach consequences to certain demands, set a standard for how insurers handle claims, and add notices and approvals before the money moves.
The Written Offer in a Motor Vehicle Claim
OCGA 9-11-67.1 governs an offer to settle a tort claim for personal injury, bodily injury, or death arising from a motor vehicle collision, and treats it as an offer to enter into a bilateral contract (OCGA 9-11-67.1(a)). An offer prepared with a lawyer’s help before the defendants answer must be in writing and list the statute’s material terms, among them an acceptance date at least 30 days after the offer is received, the amount, the releasees and the claims released, and a payment date at least 40 days after receipt. It must also include the medical or other records the offeror holds that let the recipient evaluate the claim, and it must go by certified mail or statutory overnight delivery (OCGA 9-11-67.1(b), (g)). A recipient that, by the dates in the offer, accepts the material terms other than the amount, gives any required sworn statement about its insurance, and pays the lesser of the demand or its available bodily injury limits cannot later be sued for failing to settle (OCGA 9-11-67.1(i)(1)).
Other Demands With Statutory Consequences
| Statute | What it covers | Time it names | Effect it names |
|---|---|---|---|
| OCGA 51-12-14(a) | A written demand, by registered or certified mail or statutory overnight delivery, for an amount of unliquidated damages in a tort action | 30 days from mailing or delivering | Interest on the amount demanded if the judgment is at least the amount demanded |
| OCGA 33-4-6(a) | A demand by the holder of a policy for a covered loss | 60 days | If the refusal is found to be in bad faith, up to 50 percent of the insurer's liability for the loss or $5,000, whichever is greater, plus reasonable attorney's fees |
| OCGA 33-4-7(a), (c) | A demand letter offering to settle a motor vehicle property damage claim for a stated sum | 60 days of receipt | Recovery under subsection (a) if the insurer refuses and the claimant later recovers at least the amount demanded |
How the Insurer Must Handle the Claim
Georgia’s list of unfair claims settlement practices includes an insurer’s failure to attempt “in good faith to effectuate prompt, fair, and equitable settlement of claims submitted in which liability has become reasonably clear,” and issuing checks or drafts in partial settlement that contain language releasing the insurer or its insured “from its total liability” (OCGA 33-6-34(4), (14)). An act is an improper practice only if it is committed flagrantly and in conscious disregard of the Insurance Code or its rules, or often enough to indicate a general business practice (OCGA 33-6-33), and the article gives no private cause of action for a violation (OCGA 33-6-37).
Before the Money Moves
A person seeking recovery from a third party must give notice of the claim to any benefit provider believed to have paid related medical expenses or disability benefits, by certified mail or statutory overnight delivery, at least ten days before a settlement is completed or a trial begins (OCGA 33-24-56.1(g)). A release does not defeat the lien of a hospital, nursing home, physician practice, chiropractic practice, or traumatic burn care provider unless the lien holder joins in it or releases the lien (OCGA 44-14-473(a)). Where two or more carriers cover a motor vehicle claim, one may tender its limits and the claimant may sign a limited release, and no uninsured or underinsured motorist policy issued in Georgia may require the uninsured motorist carrier’s permission for that settlement (OCGA 33-24-41.1(a), (c)).
When the claimant is a minor who has a conservator, only the conservator can compromise the claim (OCGA 29-3-3(b)). Otherwise, for a minor’s claim, a proposed gross settlement of $25,000 or less may be compromised by the natural guardian without court approval; if the gross amount is more than $25,000 but the net is $25,000 or less, the settlement goes to the probate court, or to the court where an action is pending, for approval; and if both exceed $25,000, a conservator is required to compromise the claim and submit it for approval (OCGA 29-3-3(c)).
The Filing Deadline During Negotiations
An action for injuries to the person must be brought within two years after the right of action accrues (OCGA 9-3-33). For a claim against a city, the limitation period is suspended while the demand for payment sits before the city’s governing authority without action (OCGA 36-33-5(d)). Once suit is filed and served, a different device applies: a written offer of settlement under OCGA 9-11-68 may be served more than 30 days after a summons and complaint are served and at least 30 days (or 20 days for a counteroffer) before trial (OCGA 9-11-68(a)).
Sources and Legal Authorities
- OCGA 9-11-67.1(a), (b), (g), (i)(1)
- OCGA 51-12-14(a); OCGA 33-4-6(a); OCGA 33-4-7(a), (c)
- OCGA 33-6-33; OCGA 33-6-34(4), (14); OCGA 33-6-37
- OCGA 33-24-56.1(g); OCGA 44-14-473(a); OCGA 33-24-41.1(a), (c); OCGA 29-3-3(b), (c)
- OCGA 9-3-33; OCGA 36-33-5(d); OCGA 9-11-68(a)
Disclaimer
This article provides general information about pre-suit settlements under Georgia law. It is not legal advice and does not create an attorney-client relationship. The steps that apply depend on the type of claim, who is injured, who paid benefits, what liens exist, and the specific facts. A person negotiating a settlement should consult a licensed Georgia attorney promptly about the particular situation.