Personal Injury Lawsuit question?
I have a question regarding a personal injury lawsuit that was filed against me. First, let me you give you a brief background:
In July 2003, I rear-ended a Pontiac Sunfire which was in turn pushed into a Chevy Bronco. The Sunfire sustained moderate damages to the front and rear while the Bronco sustained a $700-800 dent to the rear bumper. All vehicles were driven from the scene of the accident.
A few months after the loss, the driver of the Bronco and his wife (who was a passenger in the vehicle at the time) filed suit against me for personal injury.
Since 2003, my insurance company (Allstate) and my defense attorney (provided by Allstate) have attempted on multiple occasions to settle the suit with the plaintiff attorney. Per my attorney, the plaintiff attorney has not once responded to a settlement offer or relayed a demand on behalf of her clients.
In 2009, I provided a deposition as did the plaintiffs. While at my deposition, the plaintiff attorney agreed to high-low arbitration to resolve the matter by year end. I never heard anything after. I then called my attorney in March of this year who advised me that the plaintiff attorney had became unresponsive after the high-low arbitration offer. My attorney advised me that she made the decision to file a certificate of readiness to push the suit to trial. A few days ago I received notification from my attorney that the suit is now set for trial for the first week of June.
I have been an adjuster myself for the past three years and I have never seen a plaintiff attorney not submit a demand or respond to an offer. I initially thought she was pushing for a UIM claim but now that this is going to suit, I have no idea.
At the time of the loss I had $20k in bodily injury limits. Allstate’s last offer was $8500 combined. Based on the plaintiff’s treatment history, there’s nothing to suggest that they sustained any significant injuries from the loss. And I do know that Mr. Plaintiff has a history of auto injury suits, workers comp suits, etc. And per my attorney it appears Mr. Plaintiff is the one that has been more adamant about claiming injury.
My questions are: 1.) If this does indeed go to trial and the plaintiffs receive a verdict in excess of my policy limits, will Allstate cover the excess? I know they are not obligated to, but I feel as if they filed the certificate of readiness to push this to trial and not made attempts to settle (even for my limits) prior, there is an element of bad faith there. 2.) Anyone that is experienced with attorney rep’d injury claims (I only handle unrepped claims), what do you feel the suit is worth at trial? Keeping in mind that the plaintiff injuries appear to be limited to soft tissue with minimal treatment. 3.) At the extreme, if the verdict is well beyond my limits and Allstate does not pick up the excess, can I have the excess discharged in bankruptcy?
Thanks!
@ mrbrcatz.
1. My question was not specifically whether or not Allstate would be required to pickup an excess verdict. Obviously they are not required to. My question was, and I believe was answered very well below, whether or not bad faith existed given that Allstate pushed this to trial for resolution.
2. Yes, you can discharge a judgment via bankruptcy and retain your assets such as your home and automobile. This is allowable under Chapter 7. I’ve never seen a bankruptcy judge deny a request nor have I seen a plaintiff fight it when their injury claim was so-so. Again, that was not my question. My question was regarding the excess portion and bankruptcy.
@MDAS – Thanks for the well thought-out responses.
As an adjuster, you should know that:
1. No. Allstate isn’t responsible for more than the policy limit. If the verdict is over that limit, you are responsible for the rest.
2. I don’t think this suit is worth your policy limit – but who knows what a jury would say, if this is a trial jury. If they “let it slip” that you’re in the insurance industry, maybe the jury will want to punish you for that.
3. You have the option of filing a bankruptcy, but will a judge accept it? No way of knowing. If you have assets, you’d be forced to sell them; if you have a job, your wages could be garnished. You can’t keep your house and your wages, and file a bankruptcy just to get rid of the judgement.
And I assume in the meantime, you’ve increased your limits. A lot.
It is likely that the plaintiff attorney realizes there is no case, so doesn’t want to put any time in it or be responsive. Probably it is the Mr.P who is pushing just to get money. Going to trial may be the best solution. It’s possible that it will force a settlement, or you can even ask for a summary judgment. Don’t worry about it, but expect the insurance company to collect all the details and evidence of a pattern of suits by Mr. P.
Your homeowners policy should provide some umbrella liability that could kick in over the auto policy.
Bankruptcy does not require you to sell your home. There is an exclusion for a reasonable home and auto.
Well let me understand this. Your limit is $20 and their injuries are only $8,500 combined. Then why don’t they just pay? You limit is enough to cover everything.
I get it that the insurance attorney wants to fight the case just because the other party does this for a living. But going to court may be good. The truth will come out in court and when the other party’s attorney sees the evidence they may decide to settle.
I know this can be nerve wrecking, but relax you have insurance and an attorney provided for you. Everything should turn out o.k.
And I would increase your limits and take out an umbrella policy too so you don’t have to worry about stuff like this again.
1. Unless Allstate has previously agreed to pay more than your policy limits – no they are not required to.
I don’t see any bad faith here. They have made efforts to settle this – they have extended an offer for $8500 and offered mediation. If the other side won’t respond….the other side won’t respond. Allstate can’t force the other side to call them back….they can’t force them to take the offer. They can’t send someone over to break the plaintiff attorney’s knee caps if he won’t respond.
It’s not uncommon for a plaintiff attorney to file a suit and then not respond. That could be a sign the the plaintiff attorney filed this suit – got into discovery…and realized he does not have the case he thought he did.
I had claims where we had to file a Motion to Compel before. It’s kind of like picking up the other team to drive them to the football field so you can play them…but it has to be done to keep the suit moving forward. That’s not bad faith. That’s a good attorney.
Also, if they have filed that they are ready for trial…then they are ready. If the other side won’t respond then Allstate needs to send the message they are in it to win it. They are standing on the football field and letting the other side know they are ready to play, play hard and win. They mean business. Again, that’s a good attorney. That’s a good strategy. Not bad faith.
As far as arbitration goes – in some areas, like mine, it’s mandatory. In areas where it is not court mandated – Allstate can’t force the other side to participate. They can offer, which they have done but can’t force the plaintiff to do it.
2. I handle injury claims. And since I know absolutely nothing about your case, have not been able to review the medical records and have no idea what venue you are in – I, nor any other injury adjuster, are in a position to remotely value your claim. Your best source of info there is the defense attorney and adjuster handling your claim. But in the end- the only thing they can give you is an opinion.
3. As far as I know, filing bankruptcy is an option.
But before you go freaking out….remember…a law suit does not mean you automatically get a big pay day. A jury could come back with a $1.00 verdict. The plaintiff has to convince 12 people that all his problems are because of you and your negligence. In some venues…that can be very difficult to do.
You really need to make an appointment to go sit down with your adjuster or defense attorney. Take off your defendant hat….and put on your adjuster hat. Make a list of questions and go sit down with the defense attorney. That’s going to be your best source of information.