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Tue 5 Sep, 2006 11:26 am
Two years ago, a friend was driving his own car in Canada and hit another car. He is insured through an American insurance company and was covered while driving in Canada. He was at fault in the accident. Now, he has received notice that the other driver has filed suit for four times the upper limit of his liability coverage.
My thoughts are that his insurance company will offer a settlement to the other driver and that he needn't hire his own attorney to defend against the suit, but I really have no idea.
Thoughts?
What does his insurance agent say?
Oddly enough one of the Fringes of Mr. Noddy's family had a teen aged son in an automobile accident. It was not his fault and he was badly hurt. I'm not an expert, but it seemed to me that hiring a lawyer to collect the insurance money was a waste of money.
I think the lawyer claimed 40% of the settlement.
Re: Auto accident results in lawsuit
JPB wrote:My thoughts are that his insurance company will offer a settlement to the other driver and that he needn't hire his own attorney to defend against the suit, but I really have no idea.
Thoughts?
Yes, that's exactly what should happen. Auto insurers have a duty to defend their insureds when they get sued. There's no need for your friend to get his own lawyer, but he needs to notify his insurance agent
immediately so that he doesn't get defaulted.
His insurance company will represent him. He shouldn't have any reason to hire his own Atty.
The amount being sued for doesn't affect it in any way. He either wins the case or or he doesn't - You don't have one lawyer represent you for the first 25% of the case and another to represent you for the remaining 75%. One lawsuit, one lawyer (or law firm).
He needs to advise his insurer immediately.
Depending on the province involved, if his limits aren't high enough, and if the third party's underinsured limits aren't high enough, and if the finding is against him, he could be personally on the hook for something.
He needs to let the actual insurer know - and find out from them who they've assigned as counsel. Their counsel will let him know if he needs separate counsel - though he should put the question to them in writing (there are rare instances that I've heard of here where drivers have had separate counsel from their insurers).
Thanks, I'll pass on the info. ehbeth, his accident was in Toronto.
If he's back in America does he even have to respond to this lawsuit? Does our extradition treaty with Canada extend to this sort of thing?