Liability Limit

[Helpless in Santa Ana]

Dear IAAL,

I respect your opinion greatly.Please help me with the following questions.
My son 17 year olds was driving my car in Santa Ana, Orange County and involved in an accident. The other driver has broken leg and hospitalized. My insurance agent had informed me that, I may need an attorney to help me for future law suit, because my liability of 25000 - 50000 may not be enough to cover the injury of the other driver.

My question are:

How do I protect myself ?

What do I need to do to protect my assets ?

Is there any law that protects me ?

Please help.

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by Helpless in Santa Ana:
Dear IAAL,

I respect your opinion greatly.Please help me with the following questions.
My son 17 year olds was driving my car in Santa Ana, Orange County and involved in an accident. The other driver has broken leg and hospitalized. My insurance agent had informed me that, I may need an attorney to help me for future law suit, because my liability of 25000 - 50000 may not be enough to cover the injury of the other driver.

My question are:

How do I protect myself ?

What do I need to do to protect my assets ?

Is there any law that protects me ?

Please help.<HR></BLOCKQUOTE>

My response:

If the Plaintiff does not settle for policy limits, and depending on the size of a lawsuit, you may be entitled to "Cumis Counsel" (Ask your agent about that).

Insofar as your assets are concerned, you should do nothing until a judgment is rendered against you. If the amount of the judgment is much more than your liability limits, then Bankruptcy will be your only way out. A judgment is good for 10 years, and renewable for another 10 years. That's way to much "monkey" on anyone's back.

If you have saving accounts, stocks, bonds, checking accounts, and any valuables, such as jewelry, it may be a good time to see a financial advisor or attorney to give you some ideas on transfer to a trusted friend or relative. In other words, beyond your insurance policy, on paper, you want to appear to be a legal pauper. Do this as soon as possible. Get counseling on starting a family trust, and move all assets to the trust. This could get costly, but it'll be far less cost to you should your assets be attacked.

Now, insofar as your car insurance goes, get better coverage and get an umbrella policy on top of that, for all of your cars. Remember, sometimes lightening does strike in the same place.

Good luck.

IAAL

P.S. Thanks for the compliment, but Lars Coltrane, ALawyer, Tracey, and the others are also very good, and sometimes, they even "trump" me with their great ideas.


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By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[Helpless in Santa Ana]

Hello IAAL,

I forgot to ask you,what about my house ?
Should I sign over my deed to a trusted member,and cars ?

My house is worth about 200000, and I still owed about 120000.

anyone can help me with this, please.

Santa Ana.

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Arial, Helvetica, Verdana">quote:</font><HR>Originally posted by Helpless in Santa Ana:
Hello IAAL,

I forgot to ask you,what about my house ?
Should I sign over my deed to a trusted member,and cars ?

My house is worth about 200000, and I still owed about 120000.

anyone can help me with this, please.

Santa Ana.<HR></BLOCKQUOTE>

My response:

You didn't read close enough. I said "Family Trust." Do it.

IAAL



------------------
By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[lars coltrane]

There is another aspect to this case. Your son was driving your car with your permission and consent. I presume that you were the owner too. Therefore, the Vehicle Code may limit your exposure to $15,000 unless the plaintiff can prove negligent entrustment.

Your son on the other hand does not face a limited award, but you have not indicated whether or not he has any assets.

Do what IAAL says and set up an appointment with a lawyer before doing anything.

 

[Hepless in Santa Ana]

Thanks again to both IAAL and Lars Coltrane,
I met with a lawyer yersterday. I did applied to homestead my house with the Recorder office. The Lawyer look at all my assets and advised that I don't have enough other assets to worry about. He said to garnish my wage may be difficult since Ihave a large family to care for.
My son does not have much asset. Yes, I was the owner of the car. However, you mentioned the vehicle code that limits to 15,000 dollars, why my insurance had not telling me about this info ?...Do you know what eaxact vehicle code that I can look this up ?
This info was a good news I hear so far.

Thanks.

 

[lars coltrane]

Below is the pertinent section. Make sure to call your insurance agent and carrier and get confirmation. Remember, this limitation will not apply to an judgment against your son (though he too may not be collectible).


CA. VEHICLE CODE SECTION: 17151. (a) The liability of an owner, bailee of an owner, or
personal representative of a decedent imposed by this chapter and not
arising through the relationship of principal and agent or master
and servant is limited to the amount of fifteen thousand dollars
($15,000) for the death of or injury to one person in any one
accident and, subject to the limit as to one person, is limited to
the amount of thirty thousand dollars ($30,000) for the death of or
injury to more than one person in any one accident and is limited to
the amount of five thousand dollars ($5,000) for damage to property
of others in any one accident.
(b) An owner, bailee of an owner, or personal representative of a
decedent is not liable under this chapter for damages imposed for the
sake of example and by way of punishing the operator of the vehicle.
Nothing in this subdivision makes an owner, bailee, or personal
representative immune from liability for damages imposed for the sake
of example and by way of punishing him for his own wrongful conduct.

 

[Helpless in Santa Ana]

Dear Lars Coltrane,

Just want to thank you from all of us here, I'll check this out, and inform all party involved.
I'll keep you informed.

My thanks to all of you, who helped me much more than you've realized.

Happy in Santa Ana

 

[fishgoh0nk]

Name of State: CA

Hi, i'm in Helpless in Santa Ana's position, relatively... can you guys help me out?

I am the son in this case and was driving my father's car. I am a young adult student. We are both insured under the same agency and i was under his name. I was served with a law suit that is approx. 1 million dollars for three plaintiffs. We have been assigned a lawyer by my insurance company and he's working on it. My father and I have limits of 250,000-500,000. Will my father's exposure limits of 15,000x3 = 30,000 be covered in the 500,000 or will that have to be paid from the pocket? I know am not safe... but i have no assets... so if we are sued, do i get to declare bankruptcy... and will there be a stay on it where i will be bankrupt until i pay if off? I'm really worried for my dad an I... but more for my dad. Can you give me more information on what can be taken from us and worse case scenarios? the other party was uninsured, does that make a difference? Thanks!

 

[stephenk]

your dad is only responsible as the registered owner of the car you were driving. His liability is fixed at $30k maximum. That would be paid out of the insurance policy limits he already has. He won't be paying anything out of pocket.

Just because a lawsuit requests a millions of dollars does not mean the case is worth that amount.

 

[stephenk]

Since the plaintiff is uninsured they will only be entitled to recover for actual damages (past medical bills, future medical treatment, property damage, loss of earnings and future loss of earnings). They are not entitled to pain and suffering damages.

 

[john123456]

Stephen:

Did you realize this post is over 4 years old?

 

[stephenk]

the original post is that old. however, fishgoh0nk just posted a couple of days ago with the same scenario.

 

[fishgoh0nk]

Thanks stephen for your quick reply... that relieves me a great deal... but if i were to be sued... as in they took on the case anyway and took me to court... what would happen to me because i don't have anything to pay with? would i just have to declare bankrupcy... or would i have to do that AND perhaps pay them in the process of my on going life? pay them as i grow up/earn money?