In personal injury law, settlements often offer an efficient way to resolve complex cases—especially when multiple insurance policies apply or damages exceed a primary policy’s limits.
In those situations, attorneys frequently rely on a powerful tool known as a Gasquet settlement. This settlement strategy comes into play when primary insurance coverage alone cannot fully compensate an injured person. It takes its name from the Louisiana Supreme Court case Gasquet v. Commercial Union Insurance Co..
Below, we explain what a Gasquet settlement is, how it works when a primary policy does not play its full limits, and why this strategy plays such an important role in Louisiana personal injury cases.
What Is a Gasquet Settlement?
A Gasquet settlement allows an injured person to resolve a claim with a primary insurance carrier while continuing to pursue compensation from an excess insurance carrier.
The strategy originated in the 2004 Gasquet case, which involved a serious automobile accident and multiple layers of insurance coverage.
In that case, the plaintiff settled with the primary insurer, Commercial Union, for $200,000—even though the policy insurer from further liability. However, the plaintiff deliberately preserved claims against the excess insurer, Stonewall Insurance.
As a result, the plaintiff continued seeking compensation from the excess carrier despite not exhausting the primary policy limits.
The Key Legal Dispute
Stonewall, the excess insurer, argued that it had no obligation to pay unless the plaintiff first exhausted the full $300,000 primary policy. Because the plaintiff accepted less than the full amount, Stonewall denied coverage.
The court rejected that position.
Instead, it rules that the plaintiff could pursue a direct claim against the excess insurer. Although the excess carrier would receive a credit for the $200,000 already paid by the primary insurer, it could not avoid liability simply because the primary policy did not pay its full limits.
That ruling established the legal foundation for Gasquet settlements in Louisiana.
Today, attorneys routinely use Gasquet releases in Louisiana personal injury cases involving layered insurance coverage.
Keu Elements of a Gasquet Settlement
Gasquet settlements share several defining characteristics that help injured parties maximize compensation in complex cases.
1. Resolving Primary Coverage Without Full Policy Payment
A Gasquet settlement allows the plaintiff to settle with the primary insurer for less than the policy limit when that coverage does not fully address the damages.
By doing so, the injured party secures immediate compensation while preserving the right to pursue additional recovery from excess insurance.
In the original Gasquet case, the plaintiff accepted $200,000 under a $300,000 policy and sought the remaining damages through excess coverage.
2. Releasing the Primary Insurer—Not the At-Fault Party
Under a Gasquet settlement, the plaintiff releases the primary insurer, but does not release the tortfeasor, or at-fault party.
The tortfeasor remains in the lawsuit as a nominal defendant. This step matters because the excess insurance policy attaches to that defendant.
By keeping the tortfeasor in the case, the plaintiff preserves a clear legal path to excess coverage while resolving the primary insurer’s role.
3. Granting a Credit to the Excess Insurer
Although the primary policy does not pay its full limits, the excess insurer still receives a credit for the amount already paid.
Accordingly, the excess carrier only becomes responsible for damages exceeding that credited amount. This structure balances fairness to the insurer while protecting the injured party’s right to pursue full compensation.
4. Reducing Prolonged Litigation
Gasquet settlements often shorten the litigation process. By resolving claims with the primary insurer early, plaintiffs can narrow the dispute and focus on excess coverage.
This approach frequently saves time, reduces litigation costs, and moves the case toward resolution more efficiently.
Why Gasquet Settlements Matter in Louisiana
Gasquet settlements give injured parties flexibility in cases involving multiple insurance policies. When primary coverage falls short, this strategy allows plaintiffs to pursue the full compensation Louisiana law permits.
By settling with the primary insurer while keeping excess coverage in play, injured parties can avoid unnecessary delays and overcome technical policy defenses tied to exhaustion.
How We Can Help
If your personal injury case involves multiple insurance policies or disputes between primary and excess carriers, you need an attorney who understands Gasquet settlements.
Cueria Law Injury Lawyers has experienced handling complex Louisiana personal injury claims. Our team can evaluate your coverage, develop an effective settlement strategy, and fight for the compensation you deserve.
Contact us today to discuss your case and explore your legal options.