Breaking a Seaman’s Settlement or Release
A settlement assures the maritime worker that the sums agreed upon are paid and assures the insurance company that settling party will not file suit in the future.
Before receiving the settlement check it will probably be necessary for the claimant to attend a settlement conference in the offices of the insurance company attorney. At the settlement conference the insurance company representative will read over, and explain, the legal documents and the legal consequence of executing the agreement. The discussions may take place in the presence of a court reporter who may transcribe the proceedings at the meeting.
The attorney will tell the claimant that by signing the documents he will:
FOREVER DISCHARGE AN PAST OR FUTURE RIGHTS TO SUE THE COMPANY OR ITS INSURANCE COMPANY IN CONNECTION WITH THE ACCIDENT.
Only after listening to the attorney, and reading and signing the papers will the insurance company representative give the claimant the settlement check. For an injured maritime worker, this may be a traumatic event as he will forever waive his legal rights upon signature and acceptance of the settlement funds. It will be at that point that a maritime worker fully appreciates the unequalness of the negotiations.
The law has acknowledged the unfair bargaining position of the maritime worker. Under certain circumstances a settlement or release may be broken. Under the law, a settlement and release may be overturned where:
- The settlement was obtained through coercion or improper prompting by the company;
- Where the physician was mistaken in his diagnosis (though not prognosis) of the injuries sustained;
- When a seaman did not fully understand his rights entering into the agreement; or;
- That the adequacy of the consideration, that is the funding, was improper in light of the circumstances.
To break a release the maritime worker must institute legal proceedings. During the lawsuit the company has the responsibility to prove that the settlement was done in a fair and equitable manner. In short, in order for a settlement to be binding, it must be shown that there was no advantage taken of the seaman.
In any case, the settlement of a claim is a very serious matter. It is inadvisable to settle one’s claim without proper legal counsel. Keep in mind that your future and that of your family may be determined by the outcome of a settlement.