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Lanci v. Metropolitan Insurance Co.

Pennsylvania Superior Court
564 A.2d 972 (1989)


Facts

Lanci (plaintiff) was in settlement negotiations with his insurer, Metropolitan Insurance Co. (Metropolitan) (defendant) related to a car accident. Lanci agreed to accept a $15,000 settlement and signed a release. The letter from Lanci’s attorney to Metropolitan confirming the settlement stated that Lanci agreed to accept $15,000 in settlement of the claim, “which sum you have represented to be the straight and/or stacked policy limits applicable to this claim.” The actual limit under Lanci’s policy was $250,000. Metropolitan moved to enforce the settlement agreement. The trial court denied the motion, finding that the letter showed a mutual mistake about the policy limits. Metropolitan appealed.

Rule of Law

Issue

Holding and Reasoning (Melinson, J.)

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