Settlement Negotiation in Prop 213 Cases

Proposition 213 Overview

• Prop 213 restricts the ability of certain individuals to recover damages from car accidents if they do not have valid insurance at the time of the incident.
• An exception to Prop 213 applies to cases involving individuals who are not at fault for the accident and who are injured due to the negligence of another party.

Strategies for Managing Prop 213 Cases

• To navigate Prop 213, attorneys may employ strategies such as pursuing underinsured motorist (UIM) claims and focusing on the value of future medical expenses to maximize settlement outcomes.

Purpose of Proposition 213

• The main objective of Prop 213 is to reduce insurance costs and discourage uninsured driving, promoting accountability among drivers.

Bond Requirements in California

• In California, a bond required for specific legal actions typically amounts to $150,000, ensuring compliance with financial obligations during litigation.

Perception of Bonds in Legal Cases

• Despite their significance, bonds may often be underestimated or overlooked in the context of case evaluations.

Focus on Future Medical Expenses

• In negotiations involving medical claims, the emphasis is placed on future medical expenses, assessing the potential costs of ongoing treatment for the injured party.

Negotiation Tactics with Prop 213 and UIM Clients

• When representing clients under Prop 213 with UIM coverage, negotiations tend to concentrate on the strength of comparative fault arguments and potential liabilities of the at-fault driver.

Adjuster Behavior in Prop 213 Situations

• Adjusters are likely to tender policy limits primarily when there is clear liability or substantial evidence supporting the client's claims, especially in cases marked by significant injuries.

Value Perception of Prop 213 Cases

• Prop 213 cases are often perceived as low value due to the restrictions imposed on damages recoverable, influencing settlement dynamics and expectations.