Question
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Followup To
Question -
My 18 year old son had an accident over 3 months ago and was at fault. (There was no alcohol or drugs involved.) He made a left turn and was hit by an oncoming car. Both cars were totaled. My son was not hurt but the other driver and his wife are claiming they were and are asking my insurance co. for $30,000 to settle thier claim. Thier car was replaced but they sent my son a letter stateing they were not yet compensated for thier medical claim and are asking him for over $8000 for lost wages and medical bills.I called my insurance co. and they said they will soon make an offer. I was also told the other driver(a police officer) was pursuing them very aggressively for the money and has been very rude. My son was told to forward over $8000.00 to this guy(within 30 days) to avoid further litigation. I guess that means he will sue him if he doesn't get a settlement soon. I am concerned that he won't accept a lesser settlement and also want to know if he does accept a settlement does that release my son from
a future lawsuit? THANKS
Answer -
Settling car accident injury claim without insurance adjuster
I am liable; should I contact the claimant?
Defense attorney hired insurance company
What to do if I am sued?
Received accident lawsuit. What to do now?
Insurance defense attorney loyalty
Plaintiff policy limits UIM claim
Bankruptcy discharge judgement
Sheltered assets bankruptcy personal injury lawsuit
Dear Mary,
You are a fine Mother to take this on for your son. You and your son have little to worry about in this case regarding them coming after his wages or assets. I will tell you why below.
But first let's start with the three cardinal rules for those who are about to get sued:
1. ALWAYS, WITHOUT FAIL, GET THE LAWSUIT TO YOUR INSURANCE COMPANY ASAP, and follow their instructions and cooperate fully with the adjuster and attorney.
2. ALWAYS, WITHOUT FAIL, make a record of communications from the claimant to you and your son and forward them ASAP to your insurance company.
3. NEVER, EVER, UNDER ANY CIRCUMSTANCES, CONTACT EITHER THE PLAINTIFF OR HIS ATTORNEY. You could SERIOUSLY UNDERMINE the defense of your case by contacting the plaintiff or her attorney. I guarantee you that the attorney will get concessions out of you or you or your son that the insurance defense would NOT ALLOW you to give voluntarily. The amount that they are asking for (so long as it is within policy limits) is NONE OF YOUR BUSINESS: that is what the insurance attorney will tend to.
Also, your son DOES NOT NEED TO PAY ANY ATTORNEY TO ADVISE HIM DURING THIS PROCESS. If his company refuses to pay in its policy limits, then THEY must hire an attorney FOR YOUR SON to go over the situation. The attorney represents your son, NOT THE INSURANCE COMPANY. And after a review of the case, YOUR SON'S attorney will inform his company to pay in his policy limits (in exchange for a total release of his liability) or face a bad faith action from him.
Otherwise, the insurance adjuster will handle everything. You and your son will do NOTHING, other than cooperate with the adjuster, and the insurance attorney, should a lawsuit be filed. That attorney hired for the lawsuit will defend your son faithfully: he IS NOT the "insurance company attorney".
This attorney is only hired by your son's company. He owes his professional duty ONLY TO YOUR SON. He is bound by a Code of Professional Responsibility to act in the best interests of your SON, NOT THE INSURANCE COMPANY. In my 27 years at The Bar, I never ever saw anything but the highest ethical allegiance from insurance-hired defense attorneys to their clients—the defendants I was suing.
Since your son has insurance, all he has to do is to follow the three rules above. His insurance company will defend him fully. If the plaintiffs have a claim worth more than the limits of his insurance, the plaintiffs will settle for your son's policy limits and then use their own Underinsured Motorist Coverage (UIM) to pay the balance of the claims.
Once they settle for any money whatsoever from your son's insurance (even if it is less than his policy limits), then that will release your son from any and all liability regarding this matter. Neither they nor their insurance company can come after your son once the claimants accept any settlement from your son's insurance company since they will have to sign a general release. Also, their insurance company’s subrogation claim is derivative from their claims, so it dies with their signing the general release.
So, the claimants' company is bound by their release signed to obtain any settlement from your son's company. They cannot settle with your son's insurance unless and until their own company passes on the chance to go against your son on a derivative subrogation claim. This process is described on the page I have linked below. Their company will not desire to sue your son, since he has no assets above those which he could shelter in a bankruptcy action.
In the end, the very maximum the claimants will end up with your son's policy limits and their award from their own UIM, LESS ONE-THIRD ATTORNEYS' FEES, and less their own subrogation owing to their insurance that paid for their medical expenses and any qualifying lost wages.
These claimants are now out of the picture so far as your son is concerned. If you want to explore the world from their perspective, here is what it looks like, including rules they has to follow to use their own insurance—Directory of Legal Information Liability Insurance Policy Limits Settlements in Personal Injury Insurance Injury Claims http://www.settlementcentral.com/page0451.htm
What happens then? Nothing whatsoever. It is over and nothing will ever come of it again.
Here are some questions you did not ask, but you might kind of wonder about:
• "I assume that my son doesn't have to do anything"—CORRECT. Just follow #1 thru #3 above.
• "Should my son get an attorney now?"—NO, not ever will he need to hire an attorney, unless they obtain a judgement, in which case he will discharge that judgement in bankruptcy and he will never pay a dime of it. The insurance company will hire an attorney to represent your son in the lawsuit if one is filed.
• "Should my son try to work with the policeman or his attorney after such time when my son's insurance attorney gives up?"—Absolutely NOT! First, there is no "insurance attorney" (see above—he will represent ONLY your son). And no, your son's attorney hired by the insurance company WILL NEVER "GIVE UP". Either he will obtain a general release in exchange for payment from your son's insurance company, OR, he will fight hard and fully in defense of your son right to the end of trial and through any appellate process, if necessary. There is no charge whatsoever for his services.
• "My son and I believe that the other side is asking for too much based on what he saw after the accident. They are asking a lot more than they deserve. How do we get more detailed information on how much they are asking for and for what injury? Can we get information on where they both work and live? My son is willing to hire a PI to watch them as they are claiming a lot of lost wages. We are not sure based on what, but we would like to know what their complaints are and to see if they act inappropriately to their claimed injuries."—STOP ALL OF THIS NONESENSE NOW! It is NONE of your business nor any of your son's business what the claim is worth, where they work, or live, or ANYTHING to do with them. THIS IS SOLEY THE RESPONSIBILITY OF YOUR SON'S INSURANCE ADJUSTER OR THE INSURANCE-HIRED ATTORNEY, AND THOSE TWO WILL DO ALL OF THIS IN EXCELLENT FASHION. Instruct your son to stay the heck out of the way, or he could possibly be interfering with his insurance company's defense of his liability.
• "My son has considered contacting the police officer (or his attorney, once a lawsuit is filed) to try to resolve this."—ABSOLUTELY NO WAY. He could be found to have interfered with his own defense if he OR YOU were to ever have any contact with the plaintiffs or their attorney. DANGEROUS. Don't risk it.
• "In such case, when should my son hire his own attorney? Now? After payment from his insurance company?"—Once again, ANY PAYMENT WHATSOEVER FROM YOUR SON'S INSURANCE COMPANY WILL BE MADE ONLY ON THE CONDITION THAT THE SETTLEMENT IS IN EXCHANGE FOR A FULL GENERAL RELEASE. That puts an end to the matter.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you locate the feedback form on this site and leave some feedback for me.
Best Wishes to you and to your son,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
Answer Dear Mary,
Thank you for the nice feedback remarks.
NO, NEVER IN A PERSONAL INJURY CLAIM WILL YOU CONTACT THE CLAIMANTS. Your only contact will be with your insurance company.
Do as I suggested above ONLY, and nothing else. Otherwise, you have a HUGE risk on you part.
Of course we all know that if it is only property damage then we sometimes will just pay it. But even then one has to use a general release to cover the possibility of later claims of injury.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
