Insurance Issues

Insurance Company Unsuccessful at Seeking Dismissal Based on Jurisdictional Argument Regarding the “Amount in Controversy”

June 23, 2016 | Lebowitz & Mzhen

Earlier this month, a Michigan appellate court issued a written opinion in a case involving a woman who was struck by a vehicle that was insured by State Farm in which the alleged damages were just $25,000, but the actual damages were far greater. In the case, Hodge v. State Farm Mutual Automobile Insurance Company, the court determined that the plaintiff proved damages far greater than the $25,000 jurisdictional limit of the court where the case was filed.

The Facts of the Case

The plaintiff was struck by a car that was insured by State Farm. The plaintiff filed a lawsuit against State Farm, seeking compensation for her injuries. She filed the lawsuit in District Court, which has a jurisdictional limit of just $25,000. This means that the court cannot hear cases that seek damages in excess of $25,000.

In her pleadings, the plaintiff sought damages of just $25,000. However, she presented evidence indicating that the actual damages incurred were closer to $150,000. State Farm asked the court to prevent the plaintiff from introducing any evidence that would show her damages were greater than $25,000, since that is all that she would be able to recover in the court in which she filed the case.

Potential Legal Issues Regarding Uber and Lyft Accidents

May 3, 2016 | Lebowitz & Mzhen

Taxi-cabs may be a thing of the past. Companies such as Uber and Lyft offer people seeking a ride the ease of opening an app on their phone and securing a ride with a few clicks on their phone. The people providing these rides are often regular drivers who are looking to make some extra cash on their time off. They rarely have commercial driver’s licenses, and they are not required to get any special training before they can accept customers.

While convenient for many, this new model presents several legal issues if someone is struck by an Uber or Lyft driver. Whether the driver has a customer in the car may determine the level of assistance that the company will be willing to provide to the driver, and in turn to anyone hurt by the driver’s negligence.

The way the new model of ride-sharing works is that drivers can roam around waiting for fares to pop up on their smart phones. According to one article analyzing the potential legal implications, the process breaks down into three steps. First, the driver turns on the app and looks for a passenger. Second, the app matches the driver and the passenger. And third, the driver picks up the passenger and takes them to their destination. In the latter two stages, Uber or Lyft will likely cover the driver if anything goes wrong. However, if an accident occurs while a driver is roaming and waiting for a fare to come in, the company may deny any involvement.

Driver’s Bad-Faith Claim Against Insurance Company Allowed to Proceed over Objection

March 9, 2016 | Lebowitz & Mzhen

Earlier this month, a Florida appellate court issued a written opinion in a case brought by a motorist against his own insurance company, after he was involved in a collision with an uninsured motorist. In the case, Fridman v. Safeco Insurance Company of Illinois, the plaintiff was injured after being struck by an uninsured motorist, and he sought compensation within the $50,000 policy limit of his insurance policy with the defendant. However, the defendant denied his claim. Ultimately, a jury awarded the driver $1,000,000 based on the insurance company’s bad-faith denial of the claim, and the court upheld that verdict.

The Facts of the Case

The plaintiff was injured in a 2007 motor vehicle accident. Since the other driver was uninsured, the plaintiff filed a claim with his own insurance company for $50,000. The insurance company denied his request. He then filed a lawsuit against the insurance company, alleging bad faith in failing to settle his claim and seeking the full amount of compensation for his injuries, which “shall include the total amount of the claimant’s damages, including the amount in excess of the policy limits.”

The insurance company then cut the plaintiff a check for $50,000, the limit of his policy. The plaintiff refused the check as an offer to settle the case and opted to allow a jury to determine what his compensation should be. The jury ultimately determined that the plaintiff was entitled to $1,000,000 in compensation for his injuries, as well as for the bad faith of the insurance company. The insurance company filed an appeal, asking the court to consider the $50,000 check a final settlement that preempted the plaintiff’s case at trial.