Rear End Collisions

A recent comment asked about the liability of a motor vehicle operator who rear ends another vehicle.  Is the operator always liable?  The facts posted by the commentator were that he was traveling behind someone who stopped to make an illegal left turn and he then rear ended that vehicle.  While I cannot comment on his particular liability, I can comment on some NJ cases where a rear ending defendant was found not liable.

In a case called Rosinola v. Koehler, the plaintiff was merging onto a roadway and had a yield sign.  She claimed that she had to stop because there were cars on the road that she was trying to merge onto and that she was rear ended by the defendant.  The defendant testified that the plaintiff stopped unexpectedly 60 feet from the merging lane, that there was no reason for her to stop and that when she stopped, his vehicle skidded on the snow, sand and salt on the roadway.  The jury found plaintiff 55% liable and defendant 45% liable, meaning that plaintiff received nothing.  Plaintiff appealed.  The appellate court found that it was for the jury to determine the credibility of the parties and that the jury verdict was not unreasonable. The appellate court upheld the jury verdict.

In Mockler v. Russman, plaintiff was operating a car  and was rear ended by a school bus as she waited to make a left turn.  The bus driver and a witness testified that the bus was going approximately 10-20 mph prior to the crash.  The bus driver testified that when he applied his brakes, the bus skidded on the snowy roadway.  He tried to avoid the accident by moving the bus to the right but was unsuccessful. The jury found that the defendant was not liable.  The plaintiff appealed and the appellate court upheld the jury verdict stating that skidding in and of itself is not sufficient to justify an inference of negligence.  Plaintiff would have to prove more than just that the defendant skidded, that in some way the operator had to have deviated from the standard of care in the operation of the vehicle.

Rental Car Tips

Summer driving season is here and many of you will be renting cars for the wonderful road trip.  Here are some useful things to remember when you approach the rental counter:

1.  Liability coverage - Do I have coverage if I cause an accident ?  If you own a vehicle, the answer is probably yes.  You auto insurer in most cases will cover you for an accident caused in a rental car BUT you must check with your carrier before renting.  Some carriers have particular exclusions depending on where you are going or for what purpose your are renting the car, for example business. If you do not own a car and you have assets to protect, you can purchase liability coverage from the rental car company

2. Collision coverage - Rental car companies love to sell Collision Damage Waiver (CDW) protection.  It is very expensive, generally $10-15 dollars per day depending on the company and the type of car rented.  If you purchase that coverage and have an accident you will have no liability for the damage to the rental car regardless of fault.  If you want to save money on the CDW, you may have coverage through your own auto policy if you have collision coverage on your private vehicle.  Again check with your carrier.  Of course, you would be subject to the same deductible as for your private car.  Lastly, many credit cards provide this coverage if your rent the car using that card.  Check with your credit card company.

3.  Authorized drivers - Anyone who may drive the rental vehicle should be listed on the rental agreement, even if there is an additional fee.  If you let someone who is not on the agreement drive the car and that person gets into an accident, you may void your various coverages.

Initial Permission Rule - II

Wow.  Sorry that it has been so long since my last post.  Lots of business and personal issues going on.

My last post began a discussion of New Jersey's initial permission rule.  Following are some interesting factual patterns and how the courts have dealt with the insurance coverage issues.

Scenario 2- The owner of the car is in the hospital.  He loans the car to his nephew so that the nephew can transport the owner's wife to the hospital and perform various errands.  The owner gives the car keys to the nephew.  There are no other specific instructions nor is there any discussion of whether the nephew can use the car for his own purposes.  after several days of transporting the owner's wife around, the nephew picks up a friend and they go for coffee and a few drinks.  they deicde to drive to New York for the weekend.  Along the way they pick up 5 hitchikers (it must have been some party).  At some point, the nephew's friend takes over the driving.  As luck would have it, the friend collides with a truck on the New Jersey Turnpike.  One passenger is killed, the others injured.  The insurance carrier for the car denies coverage claiming that the driver was not using the car with the permission of the named insured (the owner).

Scenario 3 - Husband and wife planned to attend a concert.  When they realize that the brakes on their vehicle are faulty, they go to the husband's mother's home to borrow a car owned by the husband's stepfather but used primarily by his mother.  When they arrive, mother and stepfather are not home.  Husband has key to the house and finds the car keys inside.  Wife drives the car while husband, who has a suspended license,  follows behind in their own car with the bad brakes.They go to husband's cousin's house to drop off their car and then to concert.  After concert, husband drives because wife is too tired.  Wife falls asleep in the back seat and is  killed when husband loses control and has a one car accident.  Insurance carrier denies coverage claimaing that husband had no reasonable belief that he was entitled to use the vehicle.

What did the Court rule?  Scenario 2 was addressed by the New Jersey Supreme Court in Small v. Schunke, 42 NJ 407 (1964).  The Court extended the intial permission rule to provide coverage for a subsequent operator given permission to use the vehicle by the original permitee.  The court stated that there are only two questions to be answered to determine coverage under the initial permission rule: 1.  Was there permission to use the car initially? and 2. Did the subsequent use, while possession was retained constitute theft or the like?  If the answer to the first question is Yes and to the second question No, coverage must be provided.

Scenario 3 was addressed in the case of Rutgers Casualty Insurance v. Collins, 158 NJ 542 (1999).  The insurance policy in question excluded liability coverage for any person "using the vehicle without a reasonable belief that the person is entitled to do so".  The trial court, finding that the husband could not have had a reasonable belief that he had a right to use the vehicle due to his suspended license, ruled for the insurer.  The case ultimately went to the Supreme Court which held that the reasonable belief clause does not govern the factual scenario. The wife's estate entitlement to coverage arises from the initial permission rule since the wife was the first user of the vehicle.  If the wife had the initial permission of her in-laws to use the vehicle, whether express or implied, her  permitting her husband to drive makes him a subsequent permittee requiring coverage regardless of the husband's reasonable belief in his right to use the car.

 

to be continued...

 

New Jersey's Initial Permission Rule

Over the next few weeks, I will be discussing an interesting aspect of New Jersey insurance coverage called the intial permission rule.

Scenario 1 - Husband loans his wife’s car to next door  neighbor so that neighbor can visit her ill mother. After a short visit with her mother, neighbor drives to a tavern in search of her sister. She had a few drinks at the tavern and then drove to another bar. She went back and forth between the two establishments over several hours before heading home. On the way home, she is involved in a collision with another car. Insurance carrier denies coverage stating that the neighbor used the vehicle outside the scope of the permission granted.

New Jersey follows the “initial permission” rule in determining coverage issues under these circumstances. The rule, adopted by the New Jersey Supreme Court in Matits v. Nationwide Mutual Insurance Co., 33 N.J. 488, 497 (1960) (scenario 1) provides that “if a person is given permission to use a motor vehicle in the first instance, any subsequent use short of theft or the like while it remains in his possession, though not within the contemplation of the parties, is a permissive use within the terms of a standard omnibus clause in an automobile liability insurance policy.”  Therefore, the carrier was required to provide liability coverage for the vehicle.

To be continued ...

Property damage caused by stolen vehicle

In follow up to my last post, I was reading today on NorthJersey.com about a police chase of a stolen vehicle. Near the end of the chase, the stolen car smashed into a parked vehicle.

What would you do if it was your parked car? Who would pay to fix it? I think it highly unlikely that the thief would offer to pay for the damage. The insurance carrier for the stolen car can disclaim coverage because the vehicle was stolen. However, you can look to your own auto insurance policy for your Uninsured Motorist Property damage coverage. Depending on how much coverage you purchased, you may be able to have your vehicle fixed without any out of pocket loss to you.

What is UIM and why do I need it?

I recently handled a case for a lovely young couple and their infant son. They were driving along when suddenly a vehicle raced through a stop sign without stopping and smashed into the side of my client's car. Luckily, no one was killed but the wife suffered fairly significant internal injuries requiring hospitalization. Upon investigation, we determined that the tortfeasor (the car that went through the stop sign) only had a minimum insurance policy of $15,000. Since her case was clearly worth more than $15,000, could we recover from any other source? Underinsured Motorist coverage (UIM) might be such a source.

What is UIM coverage? Coverage that you purchase to protect yourself if you are involved in an accident with a vehicle that has limited coverage. It is relatively inexpensive. It is usually sold in conjunction with Uninsured Motorist coverage (UM) which protects you if you are involved in an accident with a vehicle that either has no insurance, is stolen or is unidentified ( hit and run).

Unfortunately, my client only had UIM coverage of $25,000. Since her carrier is entitled to a credit for money received from the tortfeasor, we could only collect an additional $10,000 for her, not nearly enough to compensate her for her injuries.

The Bottom Line: purchase as much UIM coverage as you can afford.