Courts Uphold Homeowners' Settlement with Insurer

ATLANTA - A Georgia appellate panel has upheld the validity of a settlement agreement between homeowners and their insurer despite the homeowners' assertions that they did not give their attorney settlement authority. Stephens v. Alan V. Mock Construction Inc., et al., No. A09A1718 (Ga. Ct. App.).

The Georgia Court of Appeals said in its Jan. 25 opinion that attorneys have apparent authority to enter into such agreements unless some limitation is reached with the client and is clearly communicated to opposing parties.

Horace and Jennifer Stephens sued Liberty Mutual Fire Insurance Co. and Mock Construction Co. in September 2005 over …