Receiving a settlement check after an accident can feel like good news, especially when medical bills, lost income, and other expenses are piling up. But if the check or accompanying paperwork says “full settlement,” “full satisfaction,” or “payment in full,” think carefully before depositing it.
In some circumstances, cashing a full settlement check can affect your ability to pursue additional compensation. Under Florida law, a claim involving a disputed or unliquidated amount may be discharged when a person accepts payment that was clearly offered in full satisfaction of the claim. Florida law includes exceptions and specific requirements, which is why the circumstances surrounding the payment matter.
What Does a Full Settlement Check Mean?
An insurance company may offer a settlement to resolve an accident claim without further negotiation or litigation. A check marked as a full settlement generally indicates that the insurer intends the payment to resolve the claim covered by the settlement.
The wording may appear on the check itself or in a letter or insurance settlement release accompanying it.
Florida Statute § 673.3111 addresses what is known as “accord and satisfaction by use of instrument.” Among other requirements, the statute applies when a claim is unliquidated or subject to a genuine dispute, a payment is tendered in good faith as full satisfaction of the claim, and the claimant obtains payment. The statute also addresses situations in which a claim may not be discharged, so whether a particular check legally ends a claim depends on the facts.
Why an Early Settlement Can Be Risky
An early offer may arrive before you know the full extent of your injuries. Some injuries require ongoing treatment, rehabilitation, specialist care, or time away from work.
Accepting a settlement too soon can be problematic if the settlement prevents you from pursuing additional personal injury compensation later.
Before accepting an accident settlement in Florida, consider whether you know:
- The extent of your injuries and expected recovery
- The total amount of your medical expenses
- Whether you may require future medical care
- How much income you have lost
- Whether your injuries could affect your future ability to work
- Exactly which claims and parties the proposed settlement covers
Once a settlement is enforceable, changing your mind may not undo it. The Florida Bar cautions that if someone signs a release or check and then changes their mind, the settlement may still be enforced.
What About the Insurance Settlement Release?
The check may not be the only document that affects your insurance claim rights.
An insurer may also ask you to sign a release. Read the entire document carefully and determine exactly what claims you are releasing before signing.
Florida law recognizes releases and covenants not to sue in personal injury cases. It also provides that releasing one tortfeasor does not automatically release other tortfeasors who may be liable for the same injury.
That distinction is another reason not to assume that settlement paperwork is routine.
What Should You Do With a Full Settlement Check?
If you receive a check marked “full settlement,” don’t rush to cash or deposit it.
Keep the check and all accompanying documents. Review any release, letter, email, or other communication that came with the payment. Before taking an action that could affect your claim, consider having a Florida personal injury attorney review the offer and explain what accepting it could mean.
The amount initially offered by an insurer isn’t necessarily the same as the full value of your claim.
Protect Your Rights Before Accepting a Settlement
A settlement can provide welcome financial relief after an accident, but accepting one may also end part or all of a claim.
Before depositing a full settlement check or signing an insurance settlement release, make sure you understand what rights you may be giving up.
Don’t accidentally waive important legal rights. Speak with a Florida personal injury attorney before accepting a settlement if you have questions about the value or legal effect of the offer.
If you have been involved in a personal injury incident, seeking legal advice is essential to protect your rights. Our legal team has more than 40 years of experience seeking justice for accident victims. Our attorneys have sought and won millions of dollars for our injured clients.
Call 850-601-1111 to schedule a complimentary consultation with no obligations. This consultation will help you explore your legal options. Let us help you fight for fair compensation.
Frequently Asked Questions
Can I cash a full settlement check and still ask for more money?
Potentially not. Florida law provides circumstances in which obtaining payment of a check conspicuously offered as full satisfaction of a disputed claim can discharge that claim. Exceptions exist, so the specific check and communications should be reviewed before you deposit it.
Does writing “under protest” on a settlement check protect my claim?
Do not assume that adding your own language to the check preserves your rights. Whether a payment constitutes full satisfaction depends on Florida law and the particular facts. If you want to preserve your claim, obtain legal advice before depositing the check.
What should I look for in an insurance settlement release?
Look for language identifying which claims, injuries, damages, people, and entities are being released. A release may have significant legal consequences, so make sure you understand its scope before signing.
Should I have a lawyer review an early accident settlement in Florida?
If you are uncertain about the extent of your injuries, future treatment, the value of your claim, or the rights the settlement would release, an attorney can review the documents before you accept the payment.
Chris received his Juris Doctorate from Florida State University College of Law in 2008, and he was admitted to the Florida Bar in December of 2008 followed by the State Bar of Texas in May of 2009. He has litigated, mediated, and resolved over five hundred first-party storm damage claims, and he has litigated, mediated, and successfully resolved multiple major construction defect claims with recoveries in excess of $1,800,000.00.