My husband hit a motocycle nearly a year ago question?

Your automobile liability insurance carrier has an obligation to defend and indemnify you on this claim. If they think it advisable to proceed to mediation, your insurance carrier will pay your share of the cost of the mediation. If you currently have retained counsel, you should have your attorney contact your insurance company and discuss the ramifications of a possible mediation.

You may also wish to discuss with your counsel what might be appropriate automobile liability insurance limits for you in the future. If you have assets, then you may need increased coverage limits.

Legal Disclaimer:

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 insure proper advice is received.

From the motorcyclist's attorney's perspective, it is the attorney's job to ensure that he obtains a full recovery for his/her client. Oftentimes this means accepting policy limits in lieu of seeking judgment beyond the insurance policy limits, as obtaining such further recovery is often difficult, expensive, and time-consuming, and there is no guarantee that all of the cost and effort will result in collection of any monies beyond the insurance policy limits.

If, however, the defendant appears to have assets beyond the policy limits (i.e., the defendant is underinsured) then it is the duty of the motorcyclist's attorney to attempt to obtain a full recovery for his/her client. It is your insurance company's duty to defend you, regardless of whether the demand exceeds policy limits, and to indemnify you up to the policy limits. The attorney you consulted should be submitting her invoice to your insurer.

There is a chance this case can resolve prior to court via mediation. Again, the motorcyclist's attorney would have to be satisfied that you do not have assets sufficient to satisfy a judgment beyond the policy limits. You say the property is not owned 100%, but from that it sounds like either (a) there is simply a co-owner, (b) there is equity but a mortgage outstanding, or (c) both of the above.

You certainly need to consult with an attorney. The relevant questions are: (1) what are the motorcyclist's injuries? (2) what are the motorcyclist's damages? (Damages include medical bills, lost income, and general damages (commonly referred to as "pain and suffering").) (3) what are your policy limits? and (4) what is your potential exposure beyond the policy limits?

As stated above, your insurer has a duty to defend you. You should not be paying any money out of pocket for your defense, although in so doing you agree to be represented by the firm selected by your insurance carrier (commonly called "insurance defense firms"). I have worked for two different insurance defense firms, and have worked closely over the years with probably 25 more. Insurance defense firms get a bad rap but they are usually owned and operated by excellent lawyers who will do a great job representing you and your interests.