§ 9-08-09 — Rescission of contract for damages for personal injuries

Any person sustaining personal injuries, or in case of the person's death, the person's
personal representative, may elect at any time within six months after the date of such injury to
avoid any settlement, adjustment, or contract made in connection therewith within the time
mentioned in section 9-08-08, by a notice in writing to that effect. The bringing of an action to
recover damages for such injuries avoids any such settlement or adjustment. Whenever an
action is commenced within the period of time herein limited to recover such damages, the
amount received by the injured person, or the injured person's representative, in case of the
injured person's death, in any such settlement or adjustment is not a bar to the prosecution of
the action but may be set up as an offset or counterclaim to the amount of damages
recoverable, if any, or applied toward payment of any judgment recovered in any such action if
such amount so received by the injured person or the injured person's representative has not
been pleaded specifically as an offset or counterclaim.