When an injury claim settles, most people assume the case is closed. However, what happens if critical information is withheld during negotiations? A recent Maryland case sheds light on this issue. In the case, Edward Sniadach v. Two Farms, two individuals who suffered slip-and-fall injuries and later accused an insurance company and its claims administrator of fraudulently inducing them into accepting lower settlements. This case raises important questions about fair dealing in settlement negotiations and highlights the importance of having an experienced Prince George’s County personal injury lawyer on your side.
The Accident and the Initial Claims
Both individuals were injured in separate slip-and-fall accidents on the property of a business. Like many premises liability claims, they sought compensation for their injuries through the business’s insurance provider. The company’s insurance carrier, Zurich America Insurance Co., handled the claims, while Gallagher Bassett Services, Inc. acted as the claims administrator.
A key issue in these claims involved Medical Payments (Med-Pay) coverage, a type of insurance that pays medical bills for injuries occurring on insured property, regardless of fault. One claimant actively asked about Med-Pay multiple times before settling, while the other settled before even learning of its availability.
One claimant settled for $16,385, with $6,385 explicitly marked as Med-Pay funds. The other claimant settled for $15,000 without being informed about Med-Pay coverage. He later learned—after signing the release—that Med-Pay was available.
The plaintiffs later alleged that the insurance companies had deliberately withheld information about Med-Pay to push them toward lower settlements.