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Do Insurers Get Their Money\\u2019s Worth from Fighting Fraud?
\\n\\nThe Law of Unintended Consequences Strikes Again to Help Set Up a Bad Faith Case How a Statute to Protect Against Bad Faith Offers Created an Opposite Result In White v. Cheek, A21A0212, Court of Appeals of Georgia (May 21, 2021) a personal injury action arising from an automobile accident involving Stephan Duwayne White and Walter Cheek. White appealed from the trial court\\u2019s denial of his motion to enforce a settlement. White contended that the trial court erred by holding that oral communications on White\\u2019s behalf constituted a counter-offer, and thus there was no enforceable settlement agreement formed between the parties. ZIFL OPINION The Georgia statute was enacted with an attempt to avoid bad faith set-up offers of settlement. It, as Chief Judge McFadden noted, had the exact opposite effect. The court was compelled to enforce the statute as written. Chief Judge McFadden made it clear in a concurring opinion that GEICO should aggressively defend the bad faith suit and made clear that a motion for summary judgment should be granted because the offer was clearly a bad faith set-up attempt. Lawyers must represent their clients but need not act unethically by refusing an offer to accept the settlement demand that did not accept every element of the 22 page offer immediately.
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