Should I respond to an unacceptable settlement offer?

[fremhe]

What is the name of your state (only U.S. law)? California

After numerous letters to an airline for un-reimbursed fees, I initiated a Small Claims action for the fees plus punitive damages (for their egregious denials and twisting of the facts).

A few weeks before the court date, the airline offered to settle (fees only) -- as an exception -- without admitting error. Moreover, the offer included some additional lies.

Had the airline apologized, and promised to behave differently in the future, I might have accepted the settlement.

My question is whether I should respond to the offer explaining why it is unacceptable, or just ignore it and show up in court. I'm concerned that not responding may look like I'm unwilling to negotiate.

 

[justalayman]

Had the airline apologized, and promised to behave differently in the future, I might have accepted the settlement.

I surely hope you aren't expecting to get an apology via small claims court. If the offer was otherwise acceptable, you should have taken it.

punitive damages (for their egregious denials and twisting of the facts).

under what theory of law are you claiming punitive damages.


once you figure that out, you need to research what California small claims courts can and cannot do.

There is no obligation to negotiate prior to going to court. You can respond or not but it appears they have offered all the financial award you are likely to get, you might want to consider the offer.

 

[fremhe]

Thanks for your response.

Regarding an apology, I was hoping they would apologize instead of going to court, not at court -- even though such an action seems unlikely.

Regarding punitive damages, I'm hoping a "bad faith" argument will prevail. During the initial exchanges or letters, the airline never denied the facts, and never denied that I was entitled to repayment. Instead they repeatedly gave silly reasons for not paying -- which seemed calculated to wear a customer down, hoping that most would not take the trouble to sue for a small amount.

I believe their stalling actions are deliberate, and if the judge agrees, then punitive damages seem possible.

Even if no punitive damages are awarded, a win in court for the fees alone seems better than accepting their settlement offer (for the same amount) -- because the win would indicate that the airline was at fault, whereas accepting the settlement would just make it easier for them to continue the practice. Also, I'd rather lose in court than accept their settlement.

I don't know if "bad faith" is an acceptable legal theory, so any advice in this area would be appreciated.

 

[racer72]

Punitive damages are not going to happen in California small claims court.

 

[justalayman]

bad faith is the basis for exemplary damages for certain claims. I have no idea if it is applicable to your situation. The worst that can happen is your claim gets rejected.

- because the win would indicate that the airline was at fault, whereas accepting the settlement would just make it easier for them to continue the practice.

You don't really believe a small claims decision will actually have any effect on them do you? While the records are public, the decisions have no meaning in any court except the one you are in at the time. Small claims can be a pretty loose court. If they lose, they will walk out of court like nothing ever happened.

 

[fremhe]

I understand that maximum Small Claims damages, even if awarded, will have little effect on a large company. But if enough people sue, the airline may find it cheaper to be honest, especially if the press gets involved. As I see it, suing in this case may be foolish, but not suing seems more foolish.

Regarding whether punitive damages can be awarded in a California Small Claims Court, the California codes seem to say yes (e.g., CC §3294), this link http://tinyurl.com/2eaogzb says they have, yet this link http://tinyurl.com/296po8l says no. I'll just have to find out.

As I read CC §3294, "bad faith" seems to be part of the malice definition:

"Malice" means conduct which is intended by the defendant to cause injury to the plaintiff or despicable conduct which is carried on by the defendant with a willful and conscious disregard of the rights or safety of others.​

which perhaps reduces (in this case) to

"Malice" means despicable conduct which is carried on by the defendant with a willful and conscious disregard of the rights of others.​

 

[justalayman]

malice requires intent. Proving intent can be very difficult but, as I said, the worst that will happen is your request will get rejected. Better to ask for something and be told no than to not ask and then realize you could have and not be able to amend your complaint.

 

[George1776]

I think that the OP is wanting to punish the airline .. so refuse their offer & make them spend $$ in court

 

[fremhe]

Thanks for all the feedback.

Returning to my original question, from the standpoint of improving the chance of being awarded punitive/exemplary damages, is it better to:

1. Decline the settlement offer formally (stating reasons) -- on the possibility that not responding will count against me (even though there is no obligation to negotiate).

OR

2. Ignore the offer, and just show up in court.


Either way, the (new) false statements in the offer should strengthen the "bad faith" argument.

 

[justalayman]

so, by ignoring the offer, aren't you also engaging in a bad faith effort to settle this. We know you have malice in your intent though.

Due to that and your claim, I would think at least acknowledging their offer would be prudent.

 

[latigo]

Punitive damages are not going to happen in California small claims court.

Where might one look for the authorities supporting that statement such as might qualify or restrict the meaning of the term “damages” as it appears in Section 116.610(a) Cal. CCP?

 

[Willlyjo]

OP...take the reimbursement they offer!! You are not going to get anywhere seeking punitive or exemplary damages in small claims in California! You are just wasting your time.

 

[George1776]

OP...take the reimbursement they offer!! You are not going to get anywhere seeking punitive or exemplary damages in small claims in California! You are just wasting your time.

Yes, would need regular court .....

 

[fremhe]

The verdict

The case was heard a few days ago, and the judgment arrived today by mail, in my favor.

The judgment amount includes my court costs, plus an amount that is slightly more than three times the amount of my claim.

So it appears I was awarded punitive damages, though the judgment doesn't explicitly say so. Other than the court costs, there is no breakdown or explanation of the award amount.

Regarding my original question about whether to respond to an unacceptable offer: after considering comments from members of this forum, I responded with a counter-offer, asking the airline to acknowledge their error, apologize, pay my out-of-pocket costs, make a small donation to a mutually agreeable passenger rights association or charity, and pledge to stop their egregious customer relations practices.

Although I'm glad to have won the case, I would have preferred that the airline had accepted my counter-offer.

Thanks again for all the feedback -- it was interesting and helpful.

 

[Willlyjo]

The case was heard a few days ago, and the judgment arrived today by mail, in my favor.

The judgment amount includes my court costs, plus an amount that is slightly more than three times the amount of my claim.

So it appears I was awarded punitive damages, though the judgment doesn't explicitly say so. Other than the court costs, there is no breakdown or explanation of the award amount.

Regarding my original question about whether to respond to an unacceptable offer: after considering comments from members of this forum, I responded with a counter-offer, asking the airline to acknowledge their error, apologize, pay my out-of-pocket costs, make a small donation to a mutually agreeable passenger rights association or charity, and pledge to stop their egregious customer relations practices.

Although I'm glad to have won the case, I would have preferred that the airline had accepted my counter-offer.

Thanks again for all the feedback -- it was interesting and helpful.

Never say never. Congrats Op...you did get somewhere with punitive damages despite my opinion you wouldn't. I kinda thought that it was possible to get punitive damages in small claims and now I know based on your case and www2.courtinfo.ca.gov/protem/court...

Thanks for posting the result to your case.