:( At 12 midnight in Dec of 2004 in RTP in North Carolina, my daughter was driving my truck which collided with another car at a traffic light controlled intersection. The driver of the other car was injured, she was not. She has stated that the light was green and she struck the vehicle because he was speeding, ran the red light and she could not avoid the collision. The accident was judged no fault by the state troopers at the scene. No one was ticketed. My insurance carrier paid for my vehicle and his insurance paid for his. He then (I believe through his insurance carrier) sued my insurance carrier and they counter sued. The case went to arbitration and was again deemed no-fault. To make a long story short... The car's driver sued me, my daughter, my insurance and his UIM carrier for 100k. I only had 30k liability coverage, never realizing that I might need more. I have been with my carrier for about 28 years and no one had informed me that my coverage might not be adequate. I have since upped my coverage. My carrier decided not to take a chance with a jury and to pay out the $30K; the UIM carrier came in and paid the 70k difference.

The plaintive built a stronger case that my daughter was guilty, so it was settled outside the court by the insurance companies. Supposedly, at the time, the light in her direction was a trip light. It no longer works in this fashion and we're not confident that it was working that way at the time. The first engineer that they talked to initially said that it was a blinking light. Anyway, no one had bothered to ask her if anyone was in front of her until almost 2 years after the fact. She was honest and stated that she really didn't remember. A man stopped right after the accident and was the one who called 911 for help but she doesn't know if he was in front, behind, or where he came from. He didn't stay long enough to talk with the police. I am now facing a subrogation suit for the 70K. At this time, I have not sought legal council because it would cost me a lot out of pocket and I am in deep credit and medical debt. So far it has been between the insurance companies and the attorneys were paid through insurance. My question is where can someone who is middle class income who cannot afford an attorney due to current debts go for legal help with this matter. What are my options here? I am about at the point of bankruptcy and am considering it to stop this lawsuit. I am told that any joint property cannot be touched which only leaves 3 high mileage cars maybe 10k at the most (the suit was against me and my daughter not my wife). Is there free legal council available anywhere?. Where do I go for help? I am willing to do most of the legwork, but am not familure with the legal protocols and process. Right now I have a civil summons in my hands... Any ideas? :confused:

Hello Mr:

I don't think you need to go bankrupt. You're not a whole lot better off than that anyway. THAT'S not an insult Sir, it's a fact that you can use to YOUR advantage.

Ok, they don't want your cars – they want cash or real estate. IF you've only got 10k, then if they won it ALL, that's ALL they'll get. And, they'll only get that if you leave it in the bank for them to take.

People buy liability insurance to protect their assets. IF you had $1.5 million in assets, then you'd need $1.5 million in liability. YOU only have $10k in assets. Protecting your $10k with $30k liability coverage seems adequate. In fact, it is. Why an insurance company is trying to squeeze blood out of a turnip is beyond me.

So, there you have it. They need to know that you're a turnip.

BEFORE the return date on your summons, write a letter to the attorney. Send it certified, return receipt requested. Tell him about your 3 cars and $10k, and that you'll give them, what? $1,000 - $2,500 to leave you alone. Tell them that they better decide pretty soon, because you have another $10k debt that you're going to satisfy, but (as a sign of good faith) you want to offer them a piece of it first.

What you're in fact telling them, is that they better take this offer because that's ALL they'll get. IF they don't take your offer, take the $10k out of the bank and let them get a judgment.

If you have no assets for them to attach, then the judgment is nothing more than a piece of paper with stuff written on it, that doesn't mean anything in the real world.

excon

You are not the only one involved here. Your daughter is also involved since she was named in the suit. You don't say how old she is or what her financial situation is here. The insurance company can afford to be patient. They can collect from her over the course of her lifetime.

There are Legal Aid societies to help someone in your situation. Look in the phone book.

I'm also not so sure that joint property can't be touched. I think its possible that they can file a lien against your share of your home (if you have one).

I'm also confused here about the No-Fault issue. I had the opportunity to check out Michigan's No-Fault statues for another questioner. And I'm wondering how they are suing under those laws.

Bankruptcy may not be a viable option either. I'm not sure if a bankruptcy would discharge such a debt.

At the very least I would consult with an atty, most will give a free consultation, to see what your options are.

Here's a link to the other thread. Check out the links in my last post there:

https://www.askmehelpdesk.com/other-...y-55582-2.html

Hello again:

I too, find it strange that the UIM company would PAY the claim, and then sue their insured. I even find it strange that they PAID the claim AT ALL. Mr. and his daughter aren't UNINSURED - they're not even UNDER-INSURED.

Isn't that what UIM is, coverage for those who are un-insured? If they paid a claim on his daughter's behalf, then SHE IS their insured.

You raise very good questions, Scott.

excon

Reviewing this some more, it appears the other driver had UIM (underinsured motorist) coverage on his policy. So his carrier paid under that claim and is, in turn, going after you to recover that loss. This makes sense. However, under Michigan's No-fault law, an injured party is restricted from the amount he can sue for. If he sued for $100K, he would have to show that he was out that money (medical bills, loss of wages etc.)

One thing you can do is try to find the 911 caller. See if the police have the callerID, Advertise in local papers for the witness to come forward. If you can prove that the other drive was, at leat partially, at fault, you can reduce the amount you owe. If you can show he was 70% at fault, then you are off the hook.

Quote:

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Originally Posted by excon

Hello again:

I too, find it strange that the UIM company would PAY the claim, and then sue their insured. I even find it strange that they PAID the claim AT ALL. Mr. and his daughter aren't UNINSURED - they're not even UNDER-INSURED.

Isn't that what UIM is, coverage for those who are un-insured? If they paid a claim on his daughter’s behalf, then SHE IS their insured.

You raise very good questions, Scott.

excon

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This is what is going on. The other parties must have been VERY badly injured. He had 30K in coverage, the car he hit had 100K in SUM (supplemental underinsured motorist coverage). SUM coverage is meant to protect someone who is hit by a party with little or no insurance. The injured party's insurance company is entitled to an offset of the 30K collected from the tort feasor (Mr.) and then pays out the other 70K subject to a subrogation right to pursue a case against the tortfeasor.

Essentially, what is going to happen is that the injured party's insurance company steps into the shoes of the injured party for purposes of the lawsuit. They would have to sue you and prove a case in Court just like the injured party would. Note, going through a trial would probably cost them upwards of $30,000 by the end of it all.

What may have happened in the arbitration was that even though liability wasn't clear, the injuries was so catastrophic that the insurers paid out to avoid the 50% chance of a HUGE verdict.

I would contact the insuance company and explain your situation and see what they offer you. I will also ask around the office here and see if anyone has faced a similar situation, because I never have.

The answer from sideoutshu regarding subrogation is correct. The insurance company is in the shoes of the insured and must prove its case to recover the amounts paid by the insurance company to the insured. So, the insurance company will have to prove that your daughter caused the accident (or at least was more at fault than the other driver) and the scope of damages resulting from the accident. You may have some positions on these issues, and some room to negotiate a settlement given your financial situation. Just be sure to get proper representation or act timely in a pro se manner so as to avoid a default judgment. If they will not settle, make them prove their case. My wife is in a similar situation, and that is what I am doing as her attorney (Arizona, not NC).

I also have some experience with Bankruptcy. I believe that Chapter 7 bankruptcy would discharge damages from a motor vehicle claim unless it is related to personal injuries caused while the driver was intoxicated (nondischargeable under Section 11 U.S.C. Section 523(a)(9) and/or other such illegal activity. However, a married couple would likely have to file a joint petition that would bring in all marital assets into the backruptcy estate (that is the case in AZ which is a community property state). So, if the plaintiff/insurance company is able to get a judgement against you, bankruptcy may be an option to discharge the debt but only if the debts are greater than marital assets (excluding exempt property e.g. some equity in your primary residence, some furniture, jewelry, and other such things).