QuestionQUESTION: On June 9, 2008, I was rear ended on the freeway. Myself and the other party are both insured by Allstate.
At first Allstate said my damages would by paid by the other party's insurance with them. Then they changed their mind and said I was partly to blame for the accident.
I sued the other party in small claims court. The other party did not show up for the hearing. I received a judgment and called Allstate about it. They asked me to fax the judgment to them. I did that, and they are 'reviewing' it. That was three days ago.
My question(s) is/are:
1) Is Allstate obligated to pay the judgment? I live in California.
2) Does the fact that the other party didn't show up for the hearing let Allstate off the hook regarding paying the judgment?
3) If Allstate must pay, how much time should they be given to bring an end to this lengthy episode?
ANSWER: Hi Castle,
What a can of worms. Under California law, the fact that you won by default due to a 'no show' by the other driver lets the drivers insurance company 'off the hook' for the damage but you have a judgement and a legal right to collect from the driver.
To muddle the can of worms even more, (to your benefit) you both have Allstate.
Situations like this don't happen very often. First one that I've seen in my career of 45 years.
Allstate is now reading their policy, the judgement documents,having legal meetings and generally pulling their hair out trying to make a decision.
Even though the 'no show' let them off the hook on the adverse driver, they still owe you (from your own policy) the amount offered when they decided that you were partially at fault.
You may have to accept a partial settlement from Allstate and then pursue against the other party with a lien against any of his personal property or a wage garnishment.
The other alternative is that Allstate may decide to go ahead and
pay the full amount.
You state that you sent a copy of the judgement to Allstate 3 days ago. I would expect it to take at least 2-3 weeks for their review and decision.
I hope that you found this information helpful. Your feedback by rating my response will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
---------- FOLLOW-UP ----------
QUESTION: Hey Bennie,
I hope a follow-up question is not out of order.
In that you regard this as a 'can of worms', perhaps more worms would make it even more interesting to you as a professional in the field. I hope so.
Here goes some more:
My first post-accident contact with Allstate was when I received a call from a woman who identified herself by name and then said "I am with Allstate, and am calling to see if you would answer some questions about the accident."
I said, "Sure." She asked if it was okay to record our conversation. I said, "That's fine." She began the recording and identified both of us and referenced
the accident as a 'side-swipe'. I immediately asked her from where she had received that information. She replied "From the husband," (of the woman that rear-ended me). I corrected her and asked her why she would listen to a description of the accident from someone who wasn't even there. She skillfully avoided answering that question. The gist of her questioning was related to the idea that the lane change I made just prior to being rear-ended might result in a determination of 'joint responsibility' due to my having possibly interfered with the flow of traffic in that lane. I agreed that if I interfered I would be partly responsible.
She then identified herself as the adjuster for the other party and that my adjuster would be calling me within the next few days.
My adjuster did call and he also initially referenced the accident as a side-swipe. I questioned him about that as well, and we laughed about how it would be so much better for the other party if it was a side-swipe and not a rear-end.
He told me that my van would be fixed at no cost to me, and that I would receive directions to an auto-body repair shop where an Allstate estimator would assess the damages.
I met the Allstate estimator at the appointed time and place. He took photos, and told me "I wish I could give you a check right now, but I can't. You should be receiving one in the mail within 2 weeks." I received a copy of his estimate, which stated in part "...your vehicle will be restored to the condition it was in prior to the accident, at no cost to you."
I did not receive a check in 3 weeks and called my adjuster about it. He didn't remember who I was and had to call my information up on his computer before telling me that "Things have changed. It's looking like you are now partly responsible...blah blah blah." I asked him if he had yet obtained the CHP Traffic Collision Report. He said "No, it's not ready yet." I told him "This is bullshit," more than once. The next day I obtained my own copy of the CHP report, because he was obviously lying about it, and didn't want me to know about some aspect of it. The report shows that the woman who rear-ended me had been behind me in the same lane before my lane change and subsequent rear-ending. We both made the same lane change due to a traffic stoppage in front of us. The report shows a simultaneous lane change.
After about 6 months I received a letter of denial from the other party's adjuster. The letter stated that my claim could not be paid for the following reasons...an excerpt from the vehicle code regarding safe lane change.
That was it, no explanation or description of the type of accident and no reference to the percentage of my responsibility.
I did not have collision insurance and there was never any offer made to me by Allstate.
My adjuster had said to me two times, "Why do you expect this claim to be paid, you don't have collision." I first said "I don't expect my insurance to cover it, I expect their liability to cover it." To his second reference to this I said, "We've already gone over that."
The last but perhaps most interesting aspect of it all is that on the Allstate Customer Service website, one can view the status of one's claim. For the last 8 months this website has had the accident described as a 'sideswipe' and stated that the damage to my vehicle was not yet known.
I have just revisited that site and can no longer view that claim. It has been removed only recently. I did however copy the pages for my records.
The judgment was for what I asked for, $2380.00.
Finally, my question is this, (and I'm not trying to play attorney)...isn't this fraud, and not really very clever fraud at that? Further, I understand that you only have my version of the events, and I'm guessing that you would not consider them ordinary.
I would appreciate any observations you would feel inclined to give me, and I do hope you have the time to read this rather lengthy accounting.
Thank-you for offering your help, and you are a help.
Sincerely,
Castle
PS I have a sister in Orinda.
AnswerHi Castle,
Please send as many follow ups as you feel necessary. After about 3, you will have to re-name the question.
Yes, there was defininitly fraud committed here. It was don by the adjustor representing the other party when she mis-represented herself as being your adjustor until you agreed that you would be partially at fault if you made an improper lane change.
That's not an issue now, but might become one later. If they ever try to use a transcript of that recording, just demand that the original recording also be played (it's kept right with her file).
Right now, Allstate is essentially out of the picture since the other party didn't show at the small claims court hearing. By losing by default, it let Allstate completely off the hook.
While we are waiting for Allstate to make a decision, try to research the assets of the at fault party.
Does he own a home or business?
Does he own rental or commercial properties?
Is he employed?
Send me another follow up as soon as Allstate responds and you have answers to any of the questions that I listed above.
Orinda is 20 miles away. I know that area quiet well.
Bennie
