You’ve gone through the negotiations, signed the dotted line on a settlement agreement, and are ready to move forward after your personal injury case. But what happens when the other party doesn’t hold up their end of the bargain and fails to pay? It’s a frustrating and stressful situation, but it’s important to know that you have legal options.
There is nothing better than coming to a fair and final resolution in our clients’ bicycle, motorcycle, pedestrian and auto accident cases. However, on rare occasions we run into insurance companies (or self-insured defendants) who don’t want to cut the settlement check right away, even though our clients have released them from liability by signing a settlement agreement.
This guide will walk you through the steps to take to enforce your settlement agreement in California and get the money you are owed.
Your Rights: The Law on Enforcing Settlement Agreements
When you’re waiting for a settlement check, you should be aware of two key California laws that protect you:
- California Code of Insurance Regulations section 2695.7 (h): This regulation establishes a clear timeline. It states that “upon receipt of releases, the insurer must tender payment immediately, or within thirty days from receipt of the release.” This means once you’ve signed the settlement release, the other party has a 30-day window to pay.
- California Code of Civil Procedure section 664.6: This law empowers the court to enforce a settlement if both parties have stipulated to it. This gives your agreement legal weight and provides a powerful tool for compelling payment.
If the other party fails to pay within the 30-day timeframe, they are in breach of the settlement agreement. This allows you to take legal action to not only enforce the original settlement but also potentially recover additional damages, including the costs and attorneys’ fees you incur while trying to get paid.
A Step-by-Step Guide to Enforcing Your Settlement Agreement
If the 30-day period has passed and you still haven’t received your settlement, here’s what to do:
- Send a Formal Demand Letter: The first step is to have your attorney send a formal letter to the other party. This letter should clearly state that they are in violation of California Insurance Code section 2695.7(h) for failing to pay the settlement within the 30-day period. It should also remind them that under California Code of Civil Procedure section 664.6, you have the right to have the court enforce the agreement and that you will seek to recover all costs and attorney’s fees associated with the enforcement.
- File a Motion to Enforce the Settlement: If the demand letter doesn’t prompt immediate payment, the next step is to file a motion with the court to enforce the settlement agreement. This will bring the matter before a judge who can order the other party to pay.
- Seek Additional Damages: In addition to enforcing the settlement, the judge can award you damages for the other party’s failure to pay in a timely manner. This can include interest on the settlement amount and any legal fees you’ve incurred.
What Our Clients Say
At Sally Morin Personal Injury Lawyers, we have a track record of fighting for our clients to ensure they receive the compensation they deserve. Here’s what some of our clients have said:
“OMG! I thought injury lawyers were not necessary or useful. I mean, in this day and age you can practically represent yourself for a low cost or “free”. I researched multiple firms and lawyers to vet their credibility and reputation. I found most of them “seek” a good case they can “win” to get a better payout. Because they dont get paid unless you do, right? Well, I found a particularly interesting firm. I was involved in an accident that resulted in a totaled vehicle and broken bones with an incredibly high hospital price tag. I explained the situation to the representative I worked with. They provided me with so much information and options. They also explained everything in simpler terms with easy to understand examples and this is before they accepted my case. The end result was, a new vehicle, no more absurd hospital bill, and a little play cash. I pray, I or my family and friends not be involved in an accident but, if they are, I will refer them to this lawfirm. I highly recommend them! Thanks Rebecca you were AMAZING!!!” – Joel M, Yelp
Read Joel M.‘s review of Sally Morin Personal Injury Lawyers on Yelp</span
“I was riding my bicycle when a car made an illegal turn into me. My bike was wrecked up and I needed surgery and several months of physical therapy. Sally took the case, and I very quickly got paid for loss of use of the bicycle and covering the expenses of travel since I couldn’t ride. Throughout the rest of the process Sally and team were very responsive as they dealt with floods of bills, collections agencies, slow health care providers, and stubborn insurance adjusters. In the end Sally even reduced her fee to get me a good settlement. Plus, she’s a supporter of the SFBC which as a cyclist makes me happy.” – Paul H., Yelp
Read Paul H.‘s review of Sally Morin Personal Injury Lawyers on Yelp
A Record of Success: $540,000 Motorcycle Accident Settlement
We recently represented a young motorcyclist who was injured in an accident. The insurance company’s initial settlement offer was far too low. The motorcycle attorneys at Sally Morin Personal Injury Lawyers stuck to their guns and ended up settling his case for $540,000—which was more than double of the insurance carrier’s initial settlement offer. This resulted in the young motorcyclist walking away with over $300,000 in his pocket to compensate him for the accident. This is just one example of our commitment to maximizing our clients’ settlements.
Frequently Asked Questions (FAQ)
Do I Have a Case?
If you’re having trouble with a delayed settlement or have been injured in an accident, it’s important to understand your legal rights. Our “Do I Have a Case?” tool can help you get started.
Do I Have a Personal Injury Case?
This assessment tool provides general guidance only and does not constitute legal advice. Case outcomes depend on many factors not covered in this brief assessment. For accurate evaluation of your specific situation, consult with a qualified personal injury attorney who can review all details of your case.
It’s important to stand up to these insurance companies and hold them accountable. If you find yourself in a situation where the other party is refusing to pay a settlement in a timely manner, let them know you are aware of your rights and are prepared to take action.
Let the Other Side Know You Expect Timely Payment of the Settlement Funds
If you find yourself in a situation where the other party is refusing to pay the settlement in a timely manner, write a letter stating that they are in violation of Insurance Code section 2695.7(h) by refusing to disburse the settlement proceeds within 30 days and that the court (under CCP 664.6) can enforce that settlement and award damages to the plaintiff for the insurance company’s breach of contract and delay in payment. It is important to stand up to these insurance companies.
