Can a customer sue a contractor after aninsurance claim has been settled?
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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 8 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.
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