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GEICO Case Summary

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Mr. Brent alleges that GEICO did not have the authority to act on behalf of the patient with respect to the Settlement Agreement and did not receive consent for the settlement from the patient or the patient’s attorney. He characterizes this as GEICO “misrepresenting” its ability to act for the patient. Mr. Brent indicates that as a result of GEICO’s alleged misrepresentation, he is contemplating adding GEICO as a defendant to the pending lawsuit between the patient and GEICO’s insured. Mr. Brent also states that if GEICO is added as a defendant, he will have no choice but to add Hospital as a defendant to “avoid the empty chair.” Mr. Brent does not identify any alleged wrongful conduct by Hospital, let alone how it engaged in misrepresentation …show more content…

For example, there is no evidence of any false statement being made by Hospital to the patient. Moreover, although Hospital can be held vicariously liable for the fraud of another, this theory of fraud only applies if Hospital knows of or participates in the fraud, and benefits from the fraud. We have received no facts showing that GEICO made a false statement to the patient, let alone that Hospital knew of or participated in such fraud. Additionally, there is also no allegation or evidence that the patient relied on any alleged false statement allegedly made by Hospital or GEICO. Mr. Brent does not allege that his client was ever deceived by, or ever made any decisions or took any actions in reliance upon any false statement related to the Settlement Agreement. Additionally, Mr. Brent also does not identify any injury his client supposedly suffered by the alleged fraud. Since the Settlement Agreement contained a release of Hospital’s claims against the patient in exchange for partial payment of the account and release of the lien, it is difficult to find actual damages accruing to the patient. Based on the foregoing, the Settlement Agreement does not appear to support a fraud claim against

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