Confidential
Settlement – $750,000Judge
Court
Alameda Superior
Attorneys
Plaintiff
Defendant
Facts
Defendant company was the owner of a certain 1976 Dodge Tradesman 200 automobile. Defendant driver, was the employee of the defendant company and was operating the vehicle in the course and scope of the agency and employment and with the knowledge, consent and permission of the defendant company. On June 3, 1998, plaintiff was a passenger in the Dodge van, which was then operated by defendant driver. At that time and place, as the defendant attempted to prime the carburetor and start the poorly maintained engine located in the interior portion of the vehicle, a fire ignited inside the vehicle, spewing gas and flame onto the plaintiff. The plaintiff also alleged that, knowingly to the defendants, the inside door latch for the passenger compartment from the inside in order to allow a safe escape of the plaintiff from the burning vehicle. As a result, plaintiff suffered severe burns. The plaintiff sued defendants for personal injury on a theory of negligence and negligent entrustment. The plaintiff's action was based upon a theory of negligence as related to the use and operation of the vehicle by its owner and driver. Although the defendants' did not dispute their negligence, they cross-complained against the plaintiff for declaratory relief, basing their contention upon a release "Admission Agreement" signed by the plaintiff, which waived plaintiff's right to sue defendant company.
Settlement Discussions
In June 1999, plaintiff demanded $1 million, which he lowered to $750,000 in October 1999. In August 1999, defendant offered $500,000, which it raised to $750,000 in October 1999.
Specials in Evidence
$254,000
Injuries
The plaintiff sustained second and third degree burns to approximately 25 percent of his body.
Other Information
In May 1998, plaintiff was referred to defendant company. Upon arriving at defendant company on May 26, 1998, plaintiff was required to sign an Admission Agreement & Waiver of Liability contract in order to obtain admittance into their program. In addition, plaintiff was also required to fill-out a Public Assistance Information sheet to obtain public assistance to pay for defendant's services. At that time, plaintiff was furthermore required to sign a Limited Power of Attorney form, in which he would turn over his montly welfare checks from Alameda County in the amount of $221 to defendant company, "in their capacity to a Public Assistance Provider. The plaintiff was also required to sign various other forms as a condition of being admitted to the program. Both parties to this action agreed to separately try the issue of the validity of the Admission Agrement & Waiver of Liability contract. The parties agreed that if the waiver was valid in regards to the facts of this case, the complaint would be dismissed. However, if the waiver was found invalid in regards to the facts of this case, the defendants would pay their insurance policy limits of $1 million. Defendant argued that the signed waiver was a valid contract in that the plaintiff waived his rights to sue for any negligence of the defendant Victory Outreach for the exchange of their services.
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