Legal Question in Personal Injury in California

Re: Protecting Personal Assets

Before you panic, find out from your insurance carrier what they honestly think the upper value of the case is and not the much more conservative settlement range value or the maximum they would pay out on the case with anything more being demanded they go to trial on. What are your insurance policy limits; if that greatly exceeds the potential amount to be paid, then why worry?

You can set up a Limited Liability Corporation, a trust, or make other transfers of funds, but any such transfers clearly made to avoid payment of those funds to plaintiff can be voided. You may want to set some of these up to avoid taxes, however.

Find out from your carrier what the plaintiff's attorney is like: experienced, reasonable, tries a large number of cases or always tries to settle to avoid trial because they appear afraid or unwilling to try any case, aggressive in seeking sources of payment funds or just accepts the insurance policy as most plaintiff's attorneys do and does not ask the defendant about their own personal assets.

Piece of mind is one of your non-physical assets; if you get the above information and anything that is necessary to make you calm then you have reasonably protected your assets.

Re: Protecting Personal Assets

You should be aware that your company has the duty to appoint a defense attorney to represent you.

Notify the company at once, because you must file an answer to the lawsuit, and your company will be paying for the lawyer.

Since you appear to have already put yourself into a state of panic, follow Mr. Shers' advice, or wait for the opinion of your defense attorney.

Re: Protecting Personal Assets

Yes. Defend against the lawsuit. If you are liable, you insurance company has to pay up to the policy limit. The best way to protect assets is to have insurance. Tneder the claim to you insurance company. They have to provide a defense, and if possible, settle within policy limit. If they have the opportunity to settle within policy limit and don't, they are liable beyond the policy limit for the full amount of your liability. If your exposure in the lawsuit exceeds the policy limit, the insurance company provided lawyer has a conflict of interest and you are entitled to have the insurance company pay for your own legal counsel to represent only you and not the carrier. That is referred to as Cumis Counsel, after the case that established the right.

Good luck.