Legal Question in Civil Litigation in Maryland

Re: Law suit from an auto accident

As usual, the information I really need is not in

the question...where did the accident happen? When?

Were there personal injuries involved as to the other

driver or passenger(s)? How much damage has been done? Was there a

police report that SAID it was your wife's fault? Has

the other person's insurance company SAID it was your

wife's fault? What were the circumstances? Did it

happen, for example, in a way that your

own insurance company could deny coverage, such as

your wife was under influence or drugs or alcohol (as

might apply in any exclusions from coverage in your policy).

Without more facts, I am in the dark on this.

That said, you may have cause for

concern, but don't get ahead of yourself. If your

wife is covered on the insurance (and first, check your policy with your

insurance agent or read your policy about

exclusions, conditions, etc.) then she will be

covered for the policy limits. Without massive injuries

and hospitalization or medical bills, I find it hard

to imagine situation is in damages exceeding 1/3 of a million dollars. You may have

trouble continuing your wife on the policy (depending

on how the insurance company views this) or trouble in the future getting car insurance

in both of your names. That is another story.

If you are asking the extent of your liability

or that of joint assets for a judgment or settlement

exceeding policy limits, that is a different question.

Your insurer has a duty to get the case settled for policy limit,

or below. If they don't and you are hit with an

excess verdict in a resulting trial (and

that is a long away away) you might have

a lawsuit against your own insurance company for

failing to settle for policy limits when they had

the chance.

In any case, I am not sure the other side if there

is an excess judgment, can execute against joint

assets unless both parties were at fault. To do that,

they would have to show you "negligently

entrusted" the car to her. Just being an owner of

the car is not enough for fault in that

respect (unless she was your employee, which I doubt

was the case). A "negligent entrustment" claim can

be difficult to show, unless your wife has a

terrible driving history and you knew about it.

That is the general landscape without knowing more.

You should sit down with an attorney who does auto accident matters,

provide ALL details, and get a clearer picture. Also, if your wife is

covered and the policy so provides (as

most do), the insurance company would handle

the defense if she is sued, including

providing counsel. Check on that also.

I really don't see any threat to joint assets or

your assets, given the situation and the extent of

policy limits. But I recommend you get your question

cleared up with an attorney who has a chance to review

the whole situation.

Re: Law suit from an auto accident

First, understand that $300,000 is a lot of money, and injuries have to be pretty catastrophic to exceed that amount. So you insurance coverage may well be enough, and that's that.

If there is a demand for more than that, your insurance co. owes you a duty to try to get it settled in good faith for your limits or less. You should have your own lawyer to monitor the situation and try to enforce that duty. If an offer is made by the plaintiff for less than the limits, your lawyer should demand that the insurer accept it. If it is rejected in bad faith and a judgment for more than the limits is obtained, you can often hold the insurance co. liable for the deficiency, essentially getting coverage up to the judgment amount.

In the event that personal assets are at risk, if the accident was in MD, to hold you personally liable the plaintiff would have to show that you were somehow at fault: either she was acting as your agent, or that you were negligent in entrusting the car to her or in maintaining the car, for example. The fact that you own the car does not mean you are liable. IF THE ACCIDENT WAS IN DC, THERE IS A STATUTE MAKING THE DRIVER THE AGENT OF THE OWNER, so you would be liable if the accident occurred there.

If you are not personally liable, certain joint assets cannot be reached (real estate owned as tenants by the entirety, joint bank accounts in MD, and certain other assets). Most retirement accounts are exempt and cannot be reached.

You and your wife should see a lawyer to go over your specific situation.