Noroski v. Fallet

Facts

On September 25, 1975, Frank E. Noroski (Plaintiff), a civil engineer, and Ervin C. Fallet (Defendant) were involved in an auto accident. Plaintiff suffered property damage, medical expenses, and lost wages as a result. On October 10, 1975, Celina Mutual Insurance Company (Celina), Defendant’s insurer, sent Plaintiff a check for Plaintiff’s property damage. Enclosed with the check was a release form for Plaintiff to sign. Plaintiff neither cashed the check nor signed the release. On December 31, 1975, Plaintiff and Celina’s claims adjuster held a telephone conversation. During this conversation, the claims adjuster agreed to send Plaintiff an additional check. Plaintiff cashed both checks. Plaintiff later incurred additional medical expenses and lost wages. Upon Celina’s refusal to pay, Plaintiff sued Defendant. Defendant argued the affirmative defense of full and complete settlement of the claim. At trial, Defendant introduced a recording of the December 31 conversation. The trial court found that, although the claims adjuster failed to follow procedure by not stamping the word “Release” on the second check, the telephone conversation constituted an enforceable release of all claims arising from the accident. Judgment was entered for Defendant. The court of appeals affirmed. Plaintiff appealed.