Coverage Pickle

[adjusterjack]

I would be curious to see how this plays out in a courtroom when the plaintiff is asked if they reported to their own carrier, why they have not filed a claim (because they lied on the first go around)

That's not going to happen because the existence of insurance is inadmissible in court during a negligence case.

Besides, an insured is only obligated to report a claim to his insurance company if he wants the insurance to cover it. In this case the owners of the damaged car had every right to eschew coverage and seek compensation from the at-fault driver. Nothing is going to compel them to make the claim.

The attorney just sent another letter of demand to my insureds making is crystal clear that:
1. No claim will be filed with boyfriends Carrier.

Which is the car owner's right.

2. Lawsuit will be filed against my insured on 10/31 unless payment is made.

Givin this, I'm thinking my customer is screwed.

Not necessarily.

ARS 12-661 holds parents liable for "Any act of malicious or wilful misconduct of a minor which results in any injury to the person or property of another" up to $10,000.

2018 Arizona Revised Statutes :: Title 12 - Courts and Civil Proceedings :: § 12-661 Liabilities of parents or legal guardians for malicious or wilful misconduct of minors

If your client's daughter was only negligent in hitting the wall then her parents aren't responsible and I don't see a "negligent entrustment" cause of action since it wasn't your client's car that the daughter was driving.

A lawsuit against just the daughter for negligence could probably be successful though it would be a long, long time before the daughter would be able to pay it.

I suggest that your client consult an attorney of their own and have that attorney respond to the demand. An attorney enumerating the potential defenses may be able to forestall the lawsuit.

It doesn't take much money (a few hundred) to get an attorney to write a letter but when it comes to spending thousands to file a lawsuit for $4700, they often balk because, in a negligence claim, they are not entitled to attorney fees.

The car owners and their attorney might be running a bluff and the car owners might back off knowing that your clients will defend with or without their insurance company.

 

[AZDave]

It doesn't take much money (a few hundred) to get an attorney to write a letter but when it comes to spending thousands to file a lawsuit for $4700, they often balk because, in a negligence claim, they are not entitled to attorney fees.

So your saying if boyfriend's parents sue my insured for daughters negligence, at the end if the day they are only entitled to the damage to the auto?

My insured s adjuster is on board to provide the full defense.

 

[adjusterjack]

So your saying if boyfriend's parents sue my insured for daughters negligence, at the end if the day they are only entitled to the damage to the auto?

Obviously not what I'm saying because what I said took more than one sentence to say and isn't quite that anyway.

I'll summarize what I did say.

A lawsuit against the daughter for her negligence is likely to be successful.

A lawsuit against the parents is likely to be unsuccessful for the reasons I cited.

My insured s adjuster is on board to provide the full defense.

Good.

Has the adjuster released a Reservation of Rights letter to your insured? If he's going to commit his employer to providing a defense with no expectation of paying, he needs to do that.

It puts the insured on notice that "Hey, we are providing a defense but warning you that the policy doesn't pay if you lose the lawsuit."

It's standard practice (or should be) when coverage is in doubt.

 

[Markthebroker]

I like pickles. However non of the rest of this do I like.

 

[Allen Trent]

I like pickles. However non of the rest of this do I like.

Fried pickles are awesome.

Hope these clients carried crop insurance to cover the bad batch of overripe pickles discussed in this thread

 

[goillini52]

Fried pickles are awesome.

Hope these clients carried crop insurance to cover the back batch of overripe pickles discussed in this thread

I wonder if Bill Clinton ever "smoked" a pickle?