Legal Question in Legal Malpractice in California
I recently went to mediation on an underinsured motorist personal injury case which was turned into binding arbitration, my award was as follows: �I find the claimant is entitled to $250,000 less a credit of $50,000, so the award is $200,000 in new money�. ($50,000 was the policy limits under the adverse party�s liability policy).
Seven months prior to mediation my UIM insurance company advanced me $75,000 in �good faith� money.
Now, instead of paying me $200,000, the company is trying to say I only have $125,000 coming; they are attempting to take a credit for the $75,000. My attorney agrees. Is this fair?
Secondly, could you please tell me what the meaning of �new money� is?
Phil
PS: I subsequently found out that my attorney�s practice is comprised mostly of mediation and arbitration and that he does a lot of mediation for this same #1 automobile insurance company. There are additional circumstances which may prove to involve malpractice by two, if not three of the parties involved. If I do retain additional counsel, I want someone very experienced in legal malpractice.
1 Answer from Attorneys
It sounds like the case was handled properly and you obtained the maximum amount available under your UIM policy. The UIM carrier is entited to an offset for what was paid on the underlying case of $50,000. They are also entitled to a credit of the $75,000 advance payment. This leaves a balance of $125,000 which is what I understand you were paid. So you received the maximum amount available unless there was medical payments coverage under your policy. If so, you may have been entitled to that also.
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