Rear-End Collision: How to Proceed

[kingbudd]

My question involves an injury that occurred in the state of: Pennsylvania

I was in a car accident in 2009. While at a stoplight I was rear ended by another vehicle. I was leaning forward prior to the accident so the seat belt did not help in restraining me. My shoulder struck the dash causing a dislocation of the shoulder, torn labrum (1 o'clock to 6 o'clock position), rotator cuff tendonitis, C5 radiculopathy, numb pain down left arm, and constant pain in shoulder/neck. I've had two surgeries: both arthoscopic surgeries (1.) labrel repair and (2.) frozen shoulder. I've had five cortisone injections over the past year as well as (1.) C6 and C7 medial branch blocks, (2.) cervical facet arthropathy, (3.) C4, C5, C6, and C7 RFA with flouro, and (4.) burning of C4, C5, C6, and C7. My next step is an implantation of a neurostimulation therapy device in my abdomen (which is a Pacemaker type device that helps relieve neck and shoulder pain); this is an actual surgery. And if that does not work neck surgery to repair the C5 and C6.

My question: I have been working with an attorney, we recently had the deposition and are moving forward with the case. The problem is the individual that caused the accident only has $25,000 policy coverage. I have $100,000 under insured coverage; however, medical expenses are already $60,000, not including attorney fees, etc... My options are to go for the $125,000 (combined insurance coverage) OR not make a demand. My lawyer did an investigation; the defendant owns a condo worth $200,000 and owes $40,000 on the condo. This would allow more money available for the settlement; however, he is leaving the decision up to me.

With my medical expenses already above $60,000 and the neurostimulation implant next month ($12,000-$15,000) and possible neck surgery what should I do.

What should I do? Is it worth the hassle? My lawyer said, that even if she files for bankruptcy, I will still make more money for compensation, pain/suffering, but the costs will be much greater and there are risks associated with going to correct. Just want to see others points of view. Are there any questions I should ask my attorney or did I miss something...

[SChinFChin]

If this person only as a $200,000 condo, $160K equity, it does not mean it could be sold for $200,000, and if you add in brokergae fees, say for $10K, it could be even less.

If this lawyer one hired by the insurance company, then they are paying the legal fees. I handled finances for a company I worked at, we did not like the approach taken by the insurance company lawyer, we did it our own way, so had to pay the legal bills out of our own pockets. If you pay the lawyer on your own, for these cases, if they work on a contingency basis, then you're looking at 25% or higher in fees, so there's not much there compared to taking a sure thing of $125K. The company I worked at who decided on paying the legal fees paid for it by the hour, so in one short year, a few depositions, and the bills ran over $10,000. I know because I approved the payments for them.

[FullAuto]

Do you not have health insurance paying for the medical bills with you just paying a smaller percentage?

I'm thinking if you take the $125k, then the lawyer will take 1/3 leaving you with $83,250. If you have health insurance, pay your portion and walk away with the rest. If you have to pay all the medical bills, you can negotiate them down a considerable amount and probably still walk away with ~$40k or so.

If you go to court, you will likely get a larger judgement and the lawyer will take closer to 40%. Then good luck turning that piece of paper (judgement) into actual cash in your hand. Your medical bills will still be due the entire time you are trying to even get into court. You'll pay them out of pocket or ruin your own credit.

The sad thing is you carry a decent amount of UM coverage. It's not like you didn't have any or only the minimum. You may in the future consider raising it to 250/500 though. I would still think if you had the ability to carry that much coverage, you should have some kind of health insurance paying the medical bills.

On a side note, I am going through nearly the same thing. I had torn labrum from a wreck last year, first surgery failed, second surgery was total reconstruction. The doctor told me Tuesday that if I didn't make better progress in therapy over the next month that he'd start me on injections. I think that's likely and I'm not looking forward to it. My medical bills are being paid by worker's comp, but the person that hit me also has low limits. I have an open UM claim but luckily I was in a company car. Since it's owned by a major insurance company, it could technically be one of the most insured cars in the country. If I wasn't in the company car and wasn't a worker's comp claim, I'd have been screwed. My own UM coverage was 100/300 and my medical bills alone have passed $100k. Yes, I have good health insurance, but I've been off work for months too. I have since raised my own UM coverage.

[Mr. Knowitall]

What I've seen some lawyers do in this type of situation is to try to negotiate an additional contribution above the policy maximum from the at-fault party. The at-fault driver may not like the idea of getting a HELOC and cashing out, say, $20K of his equity, but sometimes it's possible to get that type of outcome.

I'm not sure if we're talking about unpaid medical bills, an insurance lien, or both, but sometimes the holder of a medical lien will realize that the amount you owe creates a disincentive to settle - and a risk that they'll get nothing - and thus agrees to take a lower percentage as a payoff. Do you know if your attorney has attempted to negotiate with the lien holder(s) and, if so, how they've responded?

Collecting a judgment can be a problem, and more of a problem if the judgment interferes with your ability to proceed with your UM claim. Those are issues you should discuss with your lawyer.

I think it's absurd that legislatures set such low liability coverage requirements for auto insurance, but that's what the insurance lobby wants - they profit from mandatory coverage, but also from the fact that the worst drivers typically buy the least coverage required.

[kingbudd]

Yes, I have health insurance (actually dual coverage).

My lawyer has already reached out to the insurance companies (PIP coverage and both health care plans). They are willing to reduce costs from the in-network costs by 50%.

After this accident I increased my policy limits on everything. I think it is now 300/300 or 250/500; not sure off the top of my head.

Thanks for the information.