Legal Question in Traffic Law in Michigan

Trafic accident property liability

I was issued a ticket for ''unable to stop'' during a recent traffic accident. We were both insured. I fought the ticket in court. The ticket was dropped and no fines were paid or points awarded. Per my insurance company, because I was initially found at fault, I was liable to pay the amount of $400 to the other party. By making a claim through my insurance company, and having them pay the other party, my rates would have gone up. Rather than making a claim I cut a check to the other party for $400. My insurance agent arranged to have them pick it up. I am now being sued in small claims court for an additional $600 (my guess is that their deductible was $1000).

Per the ''No-fault certification under section 3163 of the Michigan insurance code'', listed under ''Limited Property Damage Liability/Mini-Tort'' it states:

''Under Section 3135(2)(d) of the Code, a person remains subject to tort liability for damages up to $400 to motor vehicles, to the extent that the damages are not covered by insurance. Therefore, only individuals having damages which are not covered by insurance may recover under mini-tort.''

Did the $400 I already paid cover my liability?

Is there another law I should be referencing?


Asked on 7/26/08, 12:14 pm

1 Answer from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: Trafic accident property liability

Your liability should be limited to the $400, assuming that's what the check is for. Make sure you respond to the lawsuit by the date specified on the paperwork, and appear for any and all hearings. In your answer to the complaint, you need to address the facts as stated in your question, listing them as your defenses, i.e., that you already paid the maximum amount allowed by law, and therefore, are not responsible for any further payments.

I would also requests reimbursement for any costs you incur in defending the suit, although they will be minimal, as you cannot recoup attorneys' fees, as you are not permitted to have a lawyer in small claims court.

When you file your answer and serve the plaintiff with a copy, you may also wish to include a cover letter outlining your legal defense and requesting that they dismiss the case, or you will be requesting reimbursement for costs and possible sanctions against them for filing a frivolous lawsuit.

If you need assistance drafting the Answer and cover letter, please contact me.

Thanks.

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Answered on 7/27/08, 2:26 am


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