Automotive Defense - Intoxicated Driver

The occupants of a vehicle involved in an accident with an intoxicated driver sought economic and non-economic damages in excess of $1 million dollars for alleged damages including medical bills for neck and back injuries, lost income, and lost profits.  The intoxicated driver was insured under a personal lines automobile policy, with a combined single limit of $300,000 to satisfy both injury claims.  The policy excluded coverage for punitive damages.  Smith Freed & Eberhard was retained to resolve the ensuing litigation with an eye toward a reasonable settlement under the circumstances. 

Despite the aggravating facts on liability, questions arose as to the efficacy of each of the plaintiffs’ medical claims as well as their asserted lost income and lost profit claims.  As both plaintiffs were self-employed, a forensic accountant was hired to investigate the past and future income losses of both plaintiffs.  Tax returns for both plaintiffs showed marginal profits.  Skillful deposition questioning by Smith Freed & Eberhard resulted in the passenger admitting he was guessing at his revenue, expenditures, and claims for lost profits.  Similarly, the driver was unable to document any history of profits. 

Plaintiffs were seeking windfall results based on the aggravating circumstances of the accident, and refused to negotiate except for a demand to settle for the full policy limits of $300,000.  After Smith Freed & Eberhard's attempts to engage settlement discussions and negotiations failed, the case proceeded to trial.  After four days of trial, the jury rendered a collective verdict at nearly the exact amounts offered to both plaintiffs at the mediation four months earlier, saving the insurer over half its limits, and helping the insured avoid a personal judgment against him.