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Tue 30 May, 2006 05:32 pm
I am the owner of a fuel company and back in June, 2003 one of my driver's made an erroneous delivery for a construction company. He put the gas in the diesel and the diesel in the gas tank. A lot of vehicles were involved and my insurance company paid dearly. In November 2004 I received an invoice from the construction company for $15,000 for the time/labor to take the trucks into the dealerships, for 40 oil changes, the oil for 40 vehicles (approx), 75 oil filters, etc. etc. I calculated the time and milage alone they were now billing me for and it would have been over 100 vehicles. Anyhow, I wrote them a nice letter, told them it was part of the original claim and to send it to my insurance co. I believe the insurance company wrote them a nice letter telling them the claim had been closed a year and a half earlier. Today I recieved a summons to go to Conciliation Court, they are now suing me for $7,500.00 (max allowed in state) for this unpaid invoice from Nov. 2004. I just changed insurance agents & don't want to involve the previous one and just can't afford one more attorney bill - can anyone help? Are they crazy? Isn't there some law that says it was a done deal and they can't bring this up now? Can I do this in court without an attorney? Been there before, so that wouldn't bother me, just feel this is a waste of time. Actually, my first thought was "Bring it on!" Do I just turn it over to insurance but really don't want my rates to increase, you can imagine how much a fuel company pays and they're still holding the claim in 03 against me. Why aren't they suing the insurance company anyhow? Can I just write to them and tell them this is a frivolous law suit?
Just a note - I just read they (2 brothers that own it) were charged with a federal crime of embezzlement of their employee's pension and 401K monies for quite a few years, they've probably incurred some lawyer fees there. I just feel they are looking for money as they were back in 2003 - I think there may have been 10 vehicles at most but let the insurance company deal with it and they had also bounced $20,000 in checks to me right before this incident and when I threatened them with court back then because they were not covering the checks as agreed they got pissy with me.
Contact your insurance company you had at that time and tell them you are being sued. I believe that your insurance company at the time of the incident should still be liable and should still cover your costs for the suit.
The insurance company probably didn't settle without it in writing that no further claims would be paid. If such a statement was made and the check was cashed then it should be binding.
Your rates shouldn't increase since it is an incident that is already in your insurance record. Your insurance company says it was settled. The person injured says it wasn't. That leaves the insurance company there to defend the claim unless you somehow violated the terms of the policy in effect at the time. I doubt you did since they paid out then.
The insurer at the time of the loss is the carrier that is responsible for responding to that notice. Get a copy of the notice to them immediately.
Fax it tonight if you can, or scan and email it - they need time to respond appropriately.
Parados is right about the details.
Thank you both for your response. Do you think I would still have to go to court since the summons is written to me or will the insurance company just take over?
The insurer will let you know if you need to attend. They may need you as a witness, but based on the information you provided, it seems unlikely.
This action is still part of what they insured you for.
When you contact your original insurer ask them if they settled the claim on a full and final basis, with a release signed by the third party. If they did, ask for a copy of it. (they still have to handle this action, but it would good for you to have a copy of that release in your possession. it's standard practice by most insurers to provided copies of final releases to their insured's when claims are settled)
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