Congratulations to Joel Friedman, the ninth winner of our free t-shirt contest! Joel won the random drawing for the week of June 25th. Our sincere thanks goes out to all our MicroMash alumni out there who have taken time to leave praise and constructive feedback about our bar review program. We love hearing from you! Keep it coming and stay tuned, as another winner will be drawn tomorrow! You can hear what our customers have to say about us or join the discussion by visiting this blog post.
A tortfeasor tortiously injured a victim in an auto accident. While the victim was consequently hospitalized in a hospital, the tortfeasor’s liability insurer settled with the victim for $5,000. The victim gave the insurer a signed release and received a signed memorandum, wherein the insurer promised to pay the victim $5,000 by check within 30 days.
When the victim left the hospital two days later, the hospital demanded payment of its $4,000 stated bill. The victim thereupon gave the hospital his own negotiable promissory note for $4,000, payable to the hospital’s order in 30 days; as security, the victim also assigned to the hospital the settlement memorandum from the insurer. The hospital promptly assigned for value the settlement memorandum and negotiated the note to a holder, who took the note as a holder in due course. Subsequently, the victim misrepresented to the insurer that he had lost the settlement memorandum and needed another. The insurer issued another memorandum identical to the first, and the victim assigned it to a furniture store to secure a $5,000 credit sale contract. The furniture store immediately notified the insurer of this assignment. The tortfeasor was an irresponsible minor.
If the victim starts an action against the insurer 40 days after the insurance settlement agreement, can the victim recover?
A. Yes, because his attempted assignments of his claim against the insurer were ineffective, inasmuch as the insurer’s promise to pay by check created a right in the victim that was too personal to assign.
B. No, because he no longer has possession of the insurer’s written memorandum.
C. No, because the tortfeasor’s minority and irresponsibility vitiated the settlement agreement between the victim and the insurer.
D. No, because he has made at least one effective assignment of his claim against the insurer, who has notice thereof.
Congratulations to Joel Friedman, the ninth winner of our free t-shirt contest! Joel won the random drawing for the week of June 25th. Our sincere thanks goes out to all our MicroMash alumni out there who have taken time to leave praise and constructive feedback about our bar review program. We love hearing from you! Keep it coming and stay tuned, as another winner will be drawn tomorrow! You can hear what our customers have to say about us or join the discussion by visiting this blog post.
