This section contains the nature of the case and procedural background.

Goldbard (P), a barber, sued Empire State (D) for monthly benefits when P suffered a fungus infection in his hand that prevented him from working. P sought $2,800 and D offered to pay only $800. P complained to the State Insurance Department and D again offered $800 provided that P would not renew his policy. P rejected the offer. P then changed his mind and accepted the offer and called the Department's representative who informed D. D sent P a release. P ignored the release and then sued for $2,800. P was awarded $2,800 at trial. D appealed, and the appellate court reduced the award to $800. P appealed.

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