Is a notation on an injury settlement check binding?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Is a notation on an injury settlement check binding?

I was involved in an auto accident where I was driving company and was struck from behind by another vehicle. There was no apparent injury to myself but I still went to my chiropractor to get checked out and help with a little soreness and stiffness. My chiropractor did not see any noticeable issues. I just recently received a check from the insurance company of the person who struck me from behind. The person called me to let me know I would be receiving this check; it is for $2000. I have not deposited or cashed check at this point. The check has a statement on it; “Payment for full settlement of injury claim” What should I do?

Asked on March 5, 2014 under Personal Injury, North Carolina

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, it is not legally binding. One party may not unilaterally change the amount owed or terms of payment by doing this. There is a common myth that the memo line on a check has legal force - it doesn't. It's just for informational purposes. While it helps to identify the purpose of a check, it does not bind the recipient. Think about it, if it was that easy to alter the terms of a payment, everyone would do it. For example, a person could write "payment in full" for a bill and be done with it. Additionally, the fact is that not every check can be that closely monitored for such notations; it would tie up commerce. 

Bottom line, a recipient of a check without being bound by whatever may have been written in on the memo line.

Answer: The notation in the "memo" line is not legally binding. You can negoatiate the check without any negative recourse.


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 lock Secured with SHA-256 Encryption