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Sued by insuance comapny

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Circon

Junior Member
What is the name of your state? Georgia

My sister is being sued by an insuance company for an accidental fire she started with a candle. The landlord was paid $9,000+ by his homeowners policy. The insurance comapny is now suing my sister for $9,000.

She did not have renters insurance and lost many of her own belongings. She neither asked for or was given any money for her own losses. She had to find a new home for herself and 3 kids, she has no resources to pay the insurance company. It's all she can do to pay her own rent and feed her children. What can she do??

Is she really liable for the $9,000?
Thank you for any help.
 


Circon

Junior Member
insurance

Ooops. after reading other posts here I see she is indeed liable. I guess her only option at this point would be to work out a payment plan with the insurance company since she really has no assets other then her car and her job.

This site is a wealth of information and I thank eveyone who contributes for their knowledge.
 

ALawyer

Senior Member
Your sister is ONLY liable IF SHE WAS NEGLIGENT and that negligence was the proximate cause of the fire and the damages it caused. In other words, just because the fire started from candles she lit is NOT enough to make her responsible for the damages caused without some fault on her part.

She would NOT be liable if, for example, she lit holiday candles and put them in a reasonably safe place but because of something not reasonably forseeable the candles were knocked over causing the fire. The insurance company suing her under its subrogation rights has to prove she was negligent, and even if she has already admitted it, they have to prove that it court. Hiring a law firm to represent them costs them money. It costs even more if they have to take it to trial. And it is never a 100% certainty they will win at trial or how much, and even if they do win then they have to collect any judgment they may recover from her and if she has no assets and little prospect of getting any, and they have nothing they vcan levey on, or if she files bankruptcy, they get nothing.

That gives her negotiating room. My advice toyou is that she should consult with a lawyer for an hour or so and pay the lawyer the $150-$500 s/he likely will charge for a consultation plus a bit of contact with the insurance company's lawyer. Her lawyer should be able to save far more than the fee in terms of a settlement, especially if she hasn't signed something already admitting responsibility and liability. Her lawyer can also say to the insurance company "unless you agree to accept $3,000 in full payment, payable $30 per week for 2 years (the numbers are just illustrative as the facts and her salary and assets control), she'll file bankruptcy" and call their bluff.
 

Circon

Junior Member
Thank you for the response. My sister did consult an attorney and he has advised her that she may not be liable for the entire amount. They are working on a settlement as you suggested above. I am so glad she took your advice, knowing she has rights and has someone on her side has eased a heavy mind. The attorney fees are well worth the peace of mind. Thanks! :)
 

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