Can a customer sue a contractor after aninsurance claim has been settled?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can a customer sue a contractor after aninsurance claim has been settled?

I am a cleaning contractor that specializes in water and fire damage in homes. I was hired by a GC to assist in the cleaning process for their client as a result of a fire. We were hired to clean personal property only. We started by sorting non-salvage contents from salvageable items. A list was create for all non-salvage items and given to the client. We filled 7 – 40 yard dumpsters of non-salvage contents from a 5 bedroom split level home. Yes, they are a definition of

Asked on March 22, 2016 under Business Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

1) If the settlement involves a settlement or release agreement, in which the customer agrees to accept the settlement as payment in full of all claims and/or to not sue for more, then they can't sue; in that case, they would have contractually obligated themselves to not sue.
2) Even without a release, if they were paid in full for all their provable losses, they can't sue for more--they can only get, in total, the sum of their losses, whether from the insurer, you, or both. But if they were paid less than all loses, they could sue for the balance.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption