Merry Christmas - You Have Been Served!

[shawnmwalker]

Ins 1782,

Come to Denver for a long weekend. We'll chat on a Friday and then send you to the mountains to get High. We need to chat about your next Chapter.

 

[Gulfman]

This is the way LAWSUITS work. PI lawyers go after anyone and anything that moves and breaths (and definitely anyone who has coverage).

WHY?; BECAUSE most defense firms/ins.companies choose to settle (its cheaper for them), they do so. Its a sick biz. model that needs to be addressed as rates will continue to rise.

Look out on the Major Highways,....40-50% of the billboard signs are PI lawyers, injury clinics, chiropractors, etc. Its a SCAM and you/the insurance paying public are the targets.

(sigh)

PS. IN THIS CASE, agent did nothing wrong or illegal or against ethical procedure. ITS just the sad state of our "legal system" that has long been over-due for restructuring.

:(

 

[AZDave]

Anyone know if you have a 'Hammer Clause' in your E & O? Full or partial? I learned something new today.

All parties agreed to mediation.

Mediation began at 10:00 am and ended at 5:30. After introductions, the mediator told me straight - after fully reviewing my file, he could not understand why I was there. He saw it was clear that the insured wanted a stand alone GL policy. I had a full, completed application and quote. I had documentation of attempts to quote his personal auto; ; I had an email from insured asking how much to add hired/non owned for a vendor requirement with insured acknowledging that he will use his personal auto for the owned auto part, and that was dated just two days before the accident. Pretty solid stuff.

Time to leave right? No. Mediation is a process. The question is, what can our party bring to the table, how much. My answer was zero, I have a defendable case, lets defend this to the end. My E&O answer, we are willing to pay them X amount, max, to make this go away. It was a relatively low amount. The plaintiffs demand was quite high.

Let me explain the setting: In one conference room is me and my attorneys. In the next conference room is my insured, with crying wife, his attorney from USAA and his hired attorney (the scumbagg that put me on the suit). In the very next conference room is the plaintiffs - the daughter of the dead guy and her attorney. The mediator would see one, then the next, then the next.

Hammer time> I had to consent to the offer of X from my E&O carrier. If I refused, then we go to trial (1 - 2 years later) and I would end up paying 20% of the settlement if settlement exceeds X, the offer from my carrier. (just don't want to use real numbers) . That is called a 'partial
' Hammer clause. Full Hammer clause is also very common, and one would then pay 100% of excess. What?

How nice to have your attorney discussing the what if's of jury decisions, what this dead guy is worth on a good day, and explaining the Hammer Clause. Also called a blackmail clause. Right now, I have other words for it. I consented, and left the building. No need for me anymore, they didn't care about my facts, my case.

At the end of the day, USAA pays policy limits, my policy pays X, and insured pays large out of his pocket. My case dismissed. Agents E&O is an easy target to get something from, guilty or not.

Just not right. throw money at it to go away, cost to defend, bunch of hooey.

Now lets see what happens for my E&O renewal. Probably getting dumped.!

Time to go fishing!

 

[Gulfman]

Dave,

I would call that an "extortion clause" ; you do this or we will this!

This sucks man...i feel for ya. Hang in there. We/know you did nothing wrong.

Thanks for sharing the info and WARNING us to dot our I's and cross our T's.

NOTE: FWIW, i think even if you had the client sign a statement that he had no-vehicles under the CGL, you'd still be in court. Scumbag Lawyers.

 

[xrac]

......Scumbag Lawyers.

Are their any other kind?

 

[VolAgent]

Anyone know if you have a 'Hammer Clause' in your E & O? Full or partial? I learned something new today.

All parties agreed to mediation.

Mediation began at 10:00 am and ended at 5:30. After introductions, the mediator told me straight - after fully reviewing my file, he could not understand why I was there. He saw it was clear that the insured wanted a stand alone GL policy. I had a full, completed application and quote. I had documentation of attempts to quote his personal auto; ; I had an email from insured asking how much to add hired/non owned for a vendor requirement with insured acknowledging that he will use his personal auto for the owned auto part, and that was dated just two days before the accident. Pretty solid stuff.

Time to leave right? No. Mediation is a process. The question is, what can our party bring to the table, how much. My answer was zero, I have a defendable case, lets defend this to the end. My E&O answer, we are willing to pay them X amount, max, to make this go away. It was a relatively low amount. The plaintiffs demand was quite high.

Let me explain the setting: In one conference room is me and my attorneys. In the next conference room is my insured, with crying wife, his attorney from USAA and his hired attorney (the scumbagg that put me on the suit). In the very next conference room is the plaintiffs - the daughter of the dead guy and her attorney. The mediator would see one, then the next, then the next.

Hammer time> I had to consent to the offer of X from my E&O carrier. If I refused, then we go to trial (1 - 2 years later) and I would end up paying 20% of the settlement if settlement exceeds X, the offer from my carrier. (just don't want to use real numbers) . That is called a 'partial
' Hammer clause. Full Hammer clause is also very common, and one would then pay 100% of excess. What?

How nice to have your attorney discussing the what if's of jury decisions, what this dead guy is worth on a good day, and explaining the Hammer Clause. Also called a blackmail clause. Right now, I have other words for it. I consented, and left the building. No need for me anymore, they didn't care about my facts, my case.

At the end of the day, USAA pays policy limits, my policy pays X, and insured pays large out of his pocket. My case dismissed. Agents E&O is an easy target to get something from, guilty or not.

Just not right. throw money at it to go away, cost to defend, bunch of hooey.

Now lets see what happens for my E&O renewal. Probably getting dumped.!

Time to go fishing!

First of all, sorry that you got dragged through this and sorry that you had to settle.

That said, someone hasn't been reading his policies. You will also find some variation of this in any auto, home or other liability policy. Some are more clear about it than others. I just looked at my personal homeowner's and it simply says the company has the right to settle any claim they deem appropriate. Unfortunately it does not specify what happens if I refuse to consent.

The reason for this is to keep the insured from insisting on litigating a losing battle. Also, sometimes it is just cheaper to settle and make it go away versus fighting it. It is unfortunate in that sometimes clear cut cases such as yours are settled simply because it is cheaper. However, juries are an unknown. The plaintiff may have put on a great case that convinced a jury and prevailed at trial.

----------

Dave,

I would call that an "extortion clause" ; you do this or we will this!

This sucks man...i feel for ya. Hang in there. We/know you did nothing wrong.

Thanks for sharing the info and WARNING us to dot our I's and cross our T's.

NOTE: FWIW, i think even if you had the client sign a statement that he had no-vehicles under the CGL, you'd still be in court. Scumbag Lawyers.

How is he a scumbag? Did he cheat, did he steal, did he violate the code of conduct?

He was hired to represent his client to the best of his abilities. I would say he did so as he got a settlement from Dave's E&O carrier.

Maybe we need tort reform, but that is a slippery slope. Unless we are willing to jail people for mistakes, we need the ability to sue. Money is how we "correct" a wrong in our society. So unless you think a doctor, attorney, business owner/executive, agent, the person at fault in an accident, etc. should go to jail for a mistake, then we need the ability to sue and make them financially pay.

 

[insurance1822]

I think we can all agree attorneys are completed scum bags. 10x worse then carrier reps. What happened to Dave is criminal & a gaming of the system.

 

[VolAgent]

I think we can all agree attorneys are completed scum bags. 10x worse then carrier reps. What happened to Dave is criminal & a gaming of the system.

Not at all. I know several attorneys, none I would call a scumbag. Now, I have met quite a few that seemed like an ***. I guess someone has to finish last in the class.

Yes, it definitely was a gaming of the system but certainly not criminal. Unfortunately his client, former client?, dropped the ball and went looking for anyone to blame. Sadly, the E&O attorneys decided the best way out was to settle.

 

[FL P&C Broker]

E&O companies settle. It's what they do. It sucks.

What is even worse is that you have to answer "yes" and give an explanation for every E&O app and appointment application you will ever do.

 

[insurance1822]

ALL attorneys are rotten, filthy, dirty scum bags. What happened to AZ dave is filthy. Just because it's legal doesn't make it right.

It's legal in certain parts of the world to beat your wife if she disobeys you, to throw gays off buildings, to behead christians, to rape etc. You can't be like "oh it's legal over there so like....whatever"

Granted that's an extreme comparison BUT...all attorneys are scum bags.