My sister was in a tragic auto accident and the at fault insurance as offered the policy limit. However, it's barely enough to cover the medical bills. Can I accept the policy limit and then hire an attorney to sue the at fault driver? If so, can I do anything do prevent the at fault driver from hiding or transferring his assets? CA Attorneys Plz.
If you accept the policy limit, it will surely contain a Release against the at fault driver which means you will no longer be able to sue him/her. Thus, if the policy limit is not enough, you may want to consider filing a lawsuit against the at fault driver. That way, when you prevail, you will get the policy limit and a judgment against the at fault driver for any amount not covered by the insurance. However, before filing suit, you should research whether the at fault driver has any assets; otherwise, litigation may be a waste of time. There are a variety of methods, databases, and resources that attorneys use to do research on an individual's assets. You should seek a consultation with a personal injury attorney before accepting any settlement from the insurance company. Most personal injuries are happy to offer free initial consultations.
If you accept the policy limits you will likely be required to sign a release of claims. Once signed, you may not continue to pursue the negligent driver. However, if your sister had underinsured motorist coverage, you may be able to file a UIM claim with her carrier. I would consult with an attorney before proceeding. Best of luck.
Tragically, no. When you accept the policy limits it will be in exchange for a full release of all claims.
Please check your uninsured motorist coverage. It will convert to "underinsured" motorist coverage if the amount of the policy exceeds the amount of the 3rd party liability coverage.
Time to consult with an attorney!
No. The insurance carrier is simply indemnifies the at fault driver. The settlement will be a full release of all claims against the driver. You have a lot of unanswered issues. Was the driver the owner of the car? Does your sister have Uninsured Motorist coverage? was the driver in the course and scope of employment or running an errand for someone? Was the driver convicted of a DUI.? Has an asset check been done on the driver? has the driver been asked to contribute funds? You will probably be best served by consulting with an attorney re: these issues. Also an attorney may be able to do something with the medical bills to increase the net recovery. Please feel free to contact our office in Long Beach 800-809-8848
just a word of caution in case your sister tries to do the settlement without an attorney, whcih i dont recommend. If yrou sister has underinsured motorist coverage, she has to give 30-60 days notice of the policy limits offer to her own insurance company before signing any settlement papers or else she coudl be barred from the underinsured claim.
The notice time gives yoru sistern's insuance time to decide if they want you to release the defendant or if they want to go after the defendant. IN that case her carrier woudl havee to give your sister the same amount as the insurance had offered and then they would go after the defendant for reimbursement. of course, if the defendant has little or no assets or income, her carrier is likely to waive 'subrogation' whcih means she could accept the settlement and then puruse the underinsured motorist claim.
This can be a very comlex situation and having an attorney will help your sister maximize her recovery. With that said, most attorney woudl not take a fee from the policy limits offer since it was made before being retained so their fees should only be based on any additional recovery that get from your sister's underinsured motorist coverage. Of course you need to be sure the fee agreement clearly states that before signing anything.
Good luck to your sister
It appears that your sister may have a serious claim here and an attorney experienced in this type of claim would be interested in reviewing your documentation. I have personally dealt with other California claims such as that of your sister. Having proper representation can protect your sister’s cause of action. Your sister should speak to an attorney prior to accepting any settlement.
Let me first say that I am very sorry that your family has experienced this unfortunate event. I wish your sister a speedy recovery.
While I am not licensed in California, I can only tell you what your rights are here in Vegas.
In Vegas, you ABSOLUTELY, 100% could accept the policy-limits and then sue the at-fault driver.
The way you would accomplish this is to sign a covenant not to execute on that insurance policy only. Specifically, the following is an example of a covenant I use routinely.
COVENANT NOT TO EXECUTE
In consideration of the payment of Fifteen Thousand Dollars ($15,000.00), represented to be the liability policy limits of [INSERT INSURANCE COMPANY NAME], policy number [INSERT POLICY NUMBER], claim number [INSERT POLICY NUMBER], I, [INSERT YOUR SISTER'S NAME], do hereby promise, pledge and covenant for myself, my heirs, assigns and representatives, that I shall not at any time, nor shall anyone on my behalf, including [INSERT SISTER'S NAME], execute, levy, garnish or otherwise attempt to collect against the insurance policy, No. [INSERT POLICY], issued by [INSERT INSURANCE COMPANY] as a result of the accident which occurred on [INSERT ACCIDENT DATE], and [INSERT SISTER'S NAME] injuries sustained therein. I do however, expressly reserve the right to maintain an action against [DEFENDANT] for the purpose of obtaining any other liability insurance coverage, such as an excess or umbrella policy that may apply, or other assets,
DATED this ____ day of March, 2013.
[INSERT SISTER'S NAME]
STATE OF NEVADA )
COUNTY OF CLARK )
On this day of , 2013, before me, the undersigned, a Notary Public in and for said County and State, personally appeared [SISTER], to me known and acknowledged to me that she executed the foregoing COVENANT NOT TO EXECUTE as her free act and deed, for the consideration therein set forth on behalf of [SISTER].
This is something I routinely do in my practice in situations like this where the injuries greatly exceed the available coverage. You cannot do anything right now to prevent hiding or transferring assets, so I would suggest finding an attorney to file suit immediately.
I doubt I can add anything to the answers of my colleagues, but I will try. I encourage you to consult with an attorney before you settle any claims. You mention it is your sister who was involved in the accident. Unless your claim is for wrongful death, I do not understand what type of claim you personally could make because of her accident. If that is the case, i.e., your claim is for her wrongful death, I am sorry for your loss. However, you mention your medical bills. Perhaps you were injured in the same accident.
There are various and many issues that must be considered, such as all available insurance and whether there might be other 3rd party liability, in situations where damages exceed policy limits. You would do yourself a favor consulting with an attorney. An attorney can not only explore the issue you mention (the at-fault driver’s assets) but others you have not thought of such as a reduction in your medical bills and the possibility that your claim would not be dischargeable in bankruptcy.
To assure you get the most from your settlement, simply refuse to execute any retainer agreement that does not put as much money in your pocket as you would get now if policy limits were paid given the fact they have been offered.
No, the insurance carrier will demand a full release for the policy limit payout. Your sister should consult with a personal injury attorney to see whether or not there are other insurance policies, such as uninsured motorist coverage, that may be able to provide her with additional benefits. If there is uninsured or underinsured motorist coverage available to your sister, she should not sign any release with the tortfeasor without first obtaining written approval from the UM carriers.
Your sister should obtain needed medical care and treatment immediately and follow the doctor's advice. Do not give any statement to the adverse party or insurance company nor grant them access to any medical records. Photograph the injuries and the damage done to any property. Contact a personal injury attorney in your area as soon as possible so that you can protect your rights. You may also find it helpful to review the Legal Guides I have published on Avvo.com dealing with many of the issues you are now facing. The Guides can be accessed through my profile page on Avvo.com.
If this information has been helpful, please indicate below.
Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to ensure proper advice is received.
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