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A question of where and who

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cranstjs

Junior Member
What is the name of your state (only U.S. law)? TX

Regarding a TX automobile accident where State Farm paid for repairs of my car already.

It is a $26K car that is now appraised for diminished value but, when writing State Farm to pay for the appraised diminished value, they offered a price that is about a quarter of the appraised value. The appraiser is now saying to get more, this must be sued in small claims court (the amount is under $5,000). But he suggesting that we have to go to the car owners home county/city to sue (an hour away from where we live) and that the car owner has to be sued, not State Farm.

I sued UPS once in small claims as a victim. I sued in my home town, not UPS's home town in Houston. And I don't know why we wouldn't sue State Farm, who is the company representing the vehicle owner. I don't know why the owner would know anything. I'm sure State Farm will tell the owner, but it is still State Farm who is representing the owner, right?

Thanks in advance for your suggestions.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? TX

Regarding a TX automobile accident where State Farm paid for repairs of my car already.

It is a $26K car that is now appraised for diminished value but, when writing State Farm to pay for the appraised diminished value, they offered a price that is about a quarter of the appraised value. The appraiser is now saying to get more, this must be sued in small claims court (the amount is under $5,000). But he suggesting that we have to go to the car owners home county/city to sue (an hour away from where we live) and that the car owner has to be sued, not State Farm.

I sued UPS once in small claims as a victim. I sued in my home town, not UPS's home town in Houston. And I don't know why we wouldn't sue State Farm, who is the company representing the vehicle owner. I don't know why the owner would know anything. I'm sure State Farm will tell the owner, but it is still State Farm who is representing the owner, right?

Thanks in advance for your suggestions.
State Farm didn't cause you any damage. It's only their job to defend & pay (when necessary).
 

cranstjs

Junior Member
State Farm didn't cause you any damage. It's only their job to defend & pay (when necessary).
Ok. So when I sued UPS for damage to a delivery and failure to pay the insurance, I didn't sue the delivery person who caused the damage, I sued corporate UPS for not willing to pay the claim. They represent the process. (I was paid by UPS out of court and I didn't have to go, although I was able to sue in my home town.).

I would think State Farm, who is trying to negotiate a lower price is representing the person in the accident. They are not asking that person "is it ok to lower the price?". They are just doing it, for their own benefit. If I now go after the owner, isn't it State Farm who has put the owner in harms way by reneging on the appraised value?
 

LdiJ

Senior Member
Ok. So when I sued UPS for damage to a delivery and failure to pay the insurance, I didn't sue the delivery person who caused the damage, I sued corporate UPS for not willing to pay the claim. They represent the process. (I was paid by UPS out of court and I didn't have to go, although I was able to sue in my home town.).
You sued the business that delivered your package...just like you need to sue the driver that wrecked your car. You did not sue UPS's insurance carrier.

I would think State Farm, who is trying to negotiate a lower price is representing the person in the accident. They are not asking that person "is it ok to lower the price?". They are just doing it, for their own benefit. If I now go after the owner, isn't it State Farm who has put the owner in harms way by reneging on the appraised value?
Each and every auto liability policy has liability limits. Most likely State Farm is offering less than you want because the policy liability limits are maxed out. When that happens, any judgments above and beyond the liability limits have to be paid out of the pocket of the policy holder.
 

Zigner

Senior Member, Non-Attorney
You sued the business that delivered your package...just like you need to sue the driver that wrecked your car. You did not sue UPS's insurance carrier.
And, to add on to this, he sued UPS where the damage occurred (in his home county.)
 

cranstjs

Junior Member
Ok. I understand. That makes a lot of sense.

Regarding the location of the suit, since the car owner lives in a different town/county and hour away, do I have to sue in that person's town? The accident occurred 15 minutes from our town, albeit, I believe a different county.

From what I read at a website about this, I guess you are supposed to sue in the defendants county/precinct. Hmmm... That's a major pain. If the damage was caused one county over, I'm not sure why we couldn't sue in that county, at the scene of the accident, not where the person lives, 4 counties away.

Thoughts?
 

Zigner

Senior Member, Non-Attorney
Ok. I understand. That makes a lot of sense.

Regarding the location of the suit, since the car owner lives in a different town/county and hour away, do I have to sue in that person's town? The accident occurred 15 minutes from our town, albeit, I believe a different county.

From what I read at a website about this, I guess you are supposed to sue in the defendants county/precinct. Hmmm... That's a major pain. If the damage was caused one county over, I'm not sure why we couldn't sue in that county, at the scene of the accident, not where the person lives, 4 counties away.

Thoughts?
My guess is that it's because neither of you are residents of that county.
 

cranstjs

Junior Member
Regarding the comment that I sued where the UPS damage occurred, actually not. The damage occurred at the recipients state, Arizona. I had the recipient refuse the delivery and UPS returned the product to me in TX. (Hurst) I sued UPS Houston from Hurst (near Dallas). The insurance underwriter (who's name I forget) is subcontracted to UPS to render opinions about claims. But they represent UPS on claims and UPS is who I insured and had the carrier at my end inspect and sign that the package was packed correctly prior to shipment. Yet they still refused to pay the insurance value (insurance representation).

But that is a bit different than the limit of liability of State Farm.
 

Zigner

Senior Member, Non-Attorney
Regarding the comment that I sued where the UPS damage occurred, actually not. The damage occurred at the recipients state, Arizona. I had the recipient refuse the delivery and UPS returned the product to me in TX. (Hurst) I sued UPS Houston from Hurst (near Dallas). The insurance underwriter (who's name I forget) is subcontracted to UPS to render opinions about claims. But they represent UPS on claims and UPS is who I insured and had the carrier at my end inspect and sign that the package was packed correctly prior to shipment. Yet they still refused to pay the insurance value (insurance representation).

But that is a bit different than the limit of liability of State Farm.
Your situation with UPS is moot since you never actually went to court over the claim. We don't need to discuss it any more.
 

cranstjs

Junior Member
Your situation with UPS is moot since you never actually went to court over the claim. We don't need to discuss it any more.
Agreed.

I decided to make our life easier and simply visit our court clerk to find out where best to file the claim; our town or the defendants town.

I appreciate all of the input guys.

A side note; I never even heard of claiming diminished value for a car damaged in an accident.

My wife heard it from a person in an exercise class. Oh, and this is my wife's car, not mine. A Mercedes. She told the guy who hit her, "not the best car to tail end". :eek:
 

cranstjs

Junior Member
Update: Talked with Appraiser,

He offered the following;

He said that this is definitely State Farm low-balling as they have like a $25k limit of liability in TX, not $1200, which they offered. He said that is what State Farm pulls every time. But, he says they typically will not go to court, but instead will try to re-negotiate a better price close to the date of trial. He says sometimes it goes as high as a civil court, but typically that will get beat down to about half of what you’re asking, so what’s the point.

He recommends filing it in their home town so as not to risk a 'change of venue' by the defendant, which can drag things out.
 

Zigner

Senior Member, Non-Attorney
Do you have an independent professional appraiser's report of the amount of diminished value that was caused by the other party?
 

LdiJ

Senior Member
Update: Talked with Appraiser,

He offered the following;

He said that this is definitely State Farm low-balling as they have like a $25k limit of liability in TX, not $1200, which they offered. He said that is what State Farm pulls every time. But, he says they typically will not go to court, but instead will try to re-negotiate a better price close to the date of trial. He says sometimes it goes as high as a civil court, but typically that will get beat down to about half of what you’re asking, so what’s the point.

He recommends filing it in their home town so as not to risk a 'change of venue' by the defendant, which can drag things out.
A 25k limit of liability includes ALL of the costs...not just the amount of the diminished value.
 

Zigner

Senior Member, Non-Attorney
A 25k limit of liability includes ALL of the costs...not just the amount of the diminished value.
Here is what I believe is going on (even though the OP wasn't clear). The car is only worth $26,000.00. The insurance company offered $1,200.00 which was 25% of the damage (the OP used the phrase "appraised value", but I think he meant the "value" of the damage, since 25% of $26,000.00 is $6,500.00. The OP is well within the $25k limit.
 

LdiJ

Senior Member
Here is what I believe is going on (even though the OP wasn't clear). The car is only worth $26,000.00. The insurance company offered $1,200.00 which was 25% of the damage (the OP used the phrase "appraised value", but I think he meant the "value" of the damage, since 25% of $26,000.00 is $6,500.00. The OP is well within the $25k limit.
I missed that the car was only worth 26k. Obviously it would have been totaled if the damage that was repaired had been enough to take it so close to the liability limit that they would offer only 1200.00 for diminished value.
 

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