Legal Question in Personal Injury in Utah
Repercussions of settling a claim
My wife was seriously effected in a life threatening case of food poisoning at an eating establishment. We are hopeful that there is no long term effects or damage done, but because of pre-existing health issues -it took her quite a while to recover, and was a very painful experience. We have health insurance, and most bills were covered. Their insurance has agreed to settle for damages with us without involving an attorney. We were about to sign a release of liability and recieve the settlement when we spoke with a friend who is an attorny. He told us that the amount we are settling for is grossly inadequate, and also warned us that if our health insurance provider found out that we recieved a settlement, then they could demand payment for our medical bills.
What is the likelyhood of this really happening? Should we hire an attorney and seek more money, in the event that our insurance wants it's peice?
2 Answers from Attorneys
Re: Repercussions of settling a claim
Your friend is absolutely correct. As an initial matter, insurance companies aren't in the business of giving away money. Rarely, then, do they ever offer individuals fair value compensation for injuries unless and until an attorney becomes involved and effectively leaves them with a negotiated pay or litigate alternative. In other words, you are not a threat to them without a lawyer, so they have little to no incentive to pay full value on your claim, particularly when you are willing to accept their low offer. As to the issue pertaining to your carrier's subrogation right, you would be remiss not to cover yourself and ensure that any subrogation lien is addressed now. Otherwise, you very well could be paying your settlement over to your insurance company.
Re: Repercussions of settling a claim
Insurance companies do not like attorneys because attorneys demand more in settlement of claims, and when the victims are not properly treated an attorney is experienced enough to know how to handle the matter. The insurance company does not have your best interests at heart, they want to pay as little as possible. if your wife suffered as much as you indicate, the insurance company should pay her medical bills, including reimbursement of your health insurance company. They should also compensate your wife for her loss of work, increased health risks and pain and suffering. If you want an evaluation, you are welcome to call for a free consultation.
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