Insurance Companies Protecting Themselves: Florida’s Non-joinder Statute
During a recent case, I had to explain to a client why we filed suit against the negligent driver who caused his car accident instead of that driver’s insurance company. I told him that based on a Florida statute, the defendant’s insurance company can’t be involved in the case. If the case is successful, then the recovery will be from the insurance company, but the jury isn’t supposed to know that.
Florida’s non-joinder statute (ยง627.4136) doesn’t limit an insurance company’s liability in a lawsuit, but it does limit their exposure. In the past, a car accident lawyer filed a lawsuit against the at-fault driver’s insurance company in addition to the driver themselves. Insurance companies claimed that juries exhibited a bias when they considered a defendant’s insurance coverage. If they knew the defendant had adequate coverage to pay the plaintiff’s benefits, they would usually side with the plaintiff. This presented a business problem for insurance companies: how could they diminish their payouts if the juries knew the policy’s limits?
Insurance companies rallied for the change because educated and sympathetic juries can cost them a lot of money. Current law takes the issue of insurance off the table because powerful business forces think that it too often affects the jury’s decision. But the uncertainty of insurance coverage can go both ways: if the jury thinks the defendant has adequate coverage, then they might side with the plaintiff. If they think the defendant has no insurance, then they may take mercy on them and limit the plaintiff’s recovery. This is Florida law and as lawyers, we must comply.
It raises a certain moral dilemma, however. My client was rear-ended by a woman who wasn’t paying attention to the road while she was driving. The victim has an executive work position, no prior legal problems, a wife, two children, and he missed no time from work even though he had shoulder surgery as a result of an injury sustained in the accident. When my office sent the demand requesting payment from the defendant’s insurance company, the offer took us by surprise: $0. They offered no explanation, and wouldn’t negotiate, so we had no choice but to file suit to get the benefits my client needed to recover.
When we approached him to explain the situation, he didn’t want to be involved in a law suit, because he thought it would destroy another person’s finances. Unfortunately, there was no other option if he wanted to pay for his extensive medical bills. So we filed suit. But when he found out that the suit was filed against the negligent driver, our client was upset. I explained to him that Florida statutes governed that detail, and that the jury of his case couldn’t know whether or not the defendant had insurance.
The irony of this case is that our client would have happily negotiated and settled his case pretrial, possibly for less than he would have won in court. Insurance companies have a duty to protect their insured customers. Usually this means that the penalties against the insured won’t exceed the limits of their policy, but shouldn’t it also mean that they protect their policy holders from being sued? Any recovery in this case comes from the insurance company, but the defendant’s name is tarnished in the process. As plaintiff’s lawyers, we want all the facts to be presented to the jury so they can reach the best, true decision. The client didn’t want an excessive settlement, but simply to pay his medical bills. The insurance company’s past cowardice may end up costing them a lot of money in today’s trials if the plaintiff wins a big settlement.
The fact is that our firm rarely sues a defendant without insurance. If a judge or jury rules in favor of our client, then an uninsured defendant has to pay out of pocket. Typically, uninsured people aren’t in the best financial state and can’t pay damages, so they don’t. There is little anyone can do to force them to pay if they have no assets. Cases such as these are seen as a dead-end for our clients, so we don’t want to waste their time. Our legal team knows the defendant’s insurance coverage well before we walk into the courtroom.
It isn’t always fair or easy to understand, but insurance coverage is something everyone needs to consider. If you have been injured in a car accident or having trouble talking to your insurance company, call me at the Coye Law Firm today. We work with our clients to make sure they understand how their case is progressing and what we do to recover the most for them.