Expert: Doctor Settlement - 3/1/2007

Question
If a plantiff is awarded a personal injury settlement and the defendent dies, is the plantiff's case dismissed?

Answer
Hi Shannon,

There are a few different scenarios to play out here, so be sure to ask me in a follow up question if I did not make my answer perfectly clear to you.

In direct answer to your question, the case is not dismissed.  It will continue to allow you to collect on your award.  If you have not even gone to trial, the case can be changed to substitute in his estate.  I can tell you in a separate question how to do that.

#1. If you have already been "awarded" via a forum, such as arbitration or court order, then you will have no problem collecting from his insurance.  Excess above his insurance policy limits can be collected just as if he were living: you would receive your payment from his insurance and grant a partial satisfaction of the judgment, and then you would decide whether to sue him (or in this case his estate) or to use your own Underinsured Motorist Coverage (UIM).  Most people use their UIM if the judgment debtor has few assets.

#2. If you have to go versus his estate, then ask me about that and give a lot more details and I can fill you in on how to do it.  

#3. If instead of a final arbitration award or court order you just have a plain old "settlement" agreement, then your rights are the same.  The agreement is enforceable as a contract.  His insurance will have to pay, and if there is excess above his policy limits, you will have to make the same choice as in #1: do you sue his estate or do you take the settlement and go for any excess via your UIM.

Those would be the main scenarios, but there are others, with some complexity not necessary here.  If your situation is not covered here, just ask again and give more details and we can get together again.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.SettlementCentral.Com