|
Personal Injury Lawyer Robert (Tito) Meyer, Las Cruces New Mexico
|
|
|
|
|
|
|
|
Accident And Injuries: On February 20, 1997, Jane Hovet was severely injured when her vehicle was struck from
behind at high speed by Steven Lujan's vehicle. Lujan was insured by Allstate Insurance.
Allstate refused to pay Ms. Hovet's medical bills. Ms. Hovet was forced to file a
lawsuit. Mr. Lujan admitted he was at fault for the accident and the Court found him legally liable for her injuries and damages.
Personal Injury Trial: At trial, Ms.
Hovet proved she had over $11,000.00 in medical bills from the accident, would need corrective surgery in the future, lost work, was permanently impaired from doing her normal activities of her daily
life, and suffered from pain regularly. A jury awarded her $62,050.00 in damages.
Allstate's highest settlement offer to Ms. Hovet before trial had been $7,200.00, much less than her medical bills alone.
So, Ms. Hovet filed suit against Allstate Insurance for breaching
its duty to mediate, resolve and settle her claim against Mr. Lujan, Allstate's insured. Ms. Hovet claimed Allstate's conduct violated the New Mexico Insurance Code's section
prohibiting >unfair and deceptive claims practices' (NMSA 1978, Section 59A-16-20).
Allstate's Pattern Of Mistreatment:
Lawyers argued on behalf of Ms. Hovet: that Allstate's treatment of her was merely a single instance of a nationwide practice; that Allstate has adopted a Settle for >X' or Litigate policy for cases where the liability of Allstate's insured is reasonably clear at the outset; that Allstate makes a one time ‘take-it-or-leave-it' offer generated by a computer software program that evaluates claims without any real regard for the individual characteristics of any particular claim or claimant; and that settlement offers generated by Allstate's computer program are approximately 25-40% of the historical values for similar claims, and frequently do not even equal the amount of the claimant's medical bills.
Insurer Can Be Responsible To Victim Injured By Its Insured: New Mexico Court Of Appeals recently decided that people like Ms. Hovet have the right to directly sue the liable
driver's insurer under our Insurance Code. They decided that injured victims are third party beneficiaries' of the liable driver's insurance policy, and thus could go after the
driver's insurer, even though it was not their own insurance company.
Relevant portions of the Insurance Code define unfair and deceptive claims practices to include: not attempting in
good faith to effectuate prompt, fair, and equitable settlements of an insured's claims in which liability has become reasonably clear; or compelling insured to sue to recover amounts due under
policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds when the insureds have made claims in amounts similar to what was awarded them in court.
The Future: This court decision has thrown insurance companies and their lawyers into a tizzy. That is understandable, given how often they mistreat people who have ben
injured or whose vehicles have been damaged by the companies' insureds.
I recently received a brochure for a seminar for lawyers being put on by the association of lawyers who insurance
companies hire to defend personal injury lawsuits. The title of the seminar is: Hovet v. Lujan and Allstate: Now What? The brochure's sub-title claims this is, The Dawning of Third-party Unfair
Claims Practices in New Mexico B Chasing Tort Defendants and Insurers Down a One-Way Street.
The brochure encourages lawyers to, “bring a guest from the Insurance Industry for only
$49". The seminar brochure is right when it says that, as long as this decision stands, it will have a major impact on insurance carriers and attorneys. Insurance companies may have to
start treating people fairly, not ignoring them, not abusing them, and not >low-balling' them. Up to now, insurers have known they had all the power, That may be about to change. We
will see.
The court decision is Hovet vs. Lujan and Allstate Insurance Company, Court of Appeals Docket Number 22,276, filed February 19, 2003.
|
|
|
|
|
|
|
The information contained in this site is not, nor is it intended to be, legal advice.
You should consult an attorney for individual advice regarding your own situation.
Copyright © 2008 by Robert (Tito) Meyer, Personal Injury Lawyer, Las Cruces NM. All rights reserved.
|
|
Web Design & Hosting by Art Schobey Interactive - Las Cruces
|
|
|
