CSAA Ins. Exchange v. Hodroj CA6

I. BACKGROUND

Hodroj was injured in a car accident. He was a passenger in a Jeep Cherokee involved in a single car collision. The driver was insured by CSAA. Hodroj retained an attorney to represent him in obtaining compensation for his injuries. Hodroj’s attorney wrote to CSAA offering that Hodroj would settle his claim for bodily injuries in exchange for payment in the amount of the driver’s insurance policy limits, as long as certain conditions were fulfilled. The conditions were that CSAA provide a copy of the face page of the relevant insurance policy and a sworn declaration confirming the policy limits; and deliver a check in the amount of the policy limits within 21 days of acceptance of the offer. The offer noted CSAA could condition its acceptance on Hodroj signing a written release of all bodily injury claims against CSAA’s insured. The offer was also conditioned on written acceptance within 21 days. Fifteen days later, CSAA sent written acceptance of the offer. It stated, “We accept your demand for settlement of this claim. We are tendering our insured’s policy limits of $100,000[.]” Enclosed were a sworn declaration attesting to the policy limits, and a written…