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Transformed a Million-Dollar Claim into a Fair and Modest Settlement

Updated: Jun 12


Background


An international student, the client in this case, was sued by a cyclist who rode

her bike fast and in a direction opposite to the traffic flow. She was injured in a collision

with the vehicle driven by our client. The injured plaintiff sued for damages of one million dollars. Our client's friend leased the car and only carried "storage insurance," not

"third-party liability" insurance. Being sued for one million dollars is undoubtedly daunting.



Issues & Results:


We were prepared to defend our client because the accident was caused by the

plaintiff, who rode her bicycle on the pedestrian path in the opposite direction to the traffic flow. However, such a strategy would have likely resulted in the finding of some liability

against our client. While the plaintiff contributed to the damages, the quantum of damage

would likely not have been zero.


Section 192 of the Highway Traffic Act establishes liability for accidents involving a driver, lessee, and vehicle owner. In this specific case, our client, as the driver, was held liable. Additionally, the lessee of the vehicle was also found liable, as they did not have third-party liability insurance. The vehicle owner, or lessor, was also held liable, but fortunately, they had third-party liability insurance. Ultimately, the lessor's insurance company reached a fair and modest settlement through negotiations.

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