Posts Tagged ‘appeal’

Appellate court victory in PIP lawsuit earns national attention for UAIC

Friday, July 30th, 2010

A victory in state court has produced national attention for United Automobile Insurance Corporation. As reported on this blog first, United Automobile won a nullification of legal fees from a panel of circuit court judges in Miami-Dade County in a case where the plaintiff sought to recover $2.53 in alleged overdue interest.

Insurance News Net contacted company founder and CEO Richard Parrillo Sr. and the company’s chief legal counsel, Jill Carabotta. Among the audio highlights of the interview with them:

We had to go to the appellate court to get justice. We have found that in many instances we don’t get justice in the county courts.

For the first time, we are seeing a little light at the end of the tunnel. Things were so prejudiced against us.

I think additional legislative changes are needed. Many safeguards have been run over by county judges…just annihilated.

The interview is online and you can hear it in its entirety  here.

No ‘PIP time machine’ for auto insurance claim, says Miami-Dade court

Saturday, July 17th, 2010

Been in a car accident? No insurance policy? No problem. At least that is one driver’s thought when she bought insurance from United Automobile Insurance Company (UAIC) after her daughter was injured in a collision.

Now, more than four years and seven months later, a Miami-Dade County circuit court, sitting in its appellate capacity, says that county court judge Teretha Thomas erred when she found a UAIC adjuster could promise coverage despite there being no insurance policy in effect.

A driver was involved in an accident on Dec. 7, 2005, at 7:55 a.m., in which her daughter was a passenger, according to court records. At 10:23 a.m., the driver purchased an insurance policy with UAIC. The next day, the daughter began receiving treatment for injuries allegedly received in the accident, and made a claim for payment through UAIC.

When the medical provider submitted the bill, UAIC did not pay and was sued. When the provider’s attorney, Todd A. Landau, took the deposition of UAIC’s claims adjuster, that person erroneously said the company had no issue with regard to coverage.

Landau argued to Judge Thomas that the adjuster’s testimony meant UAIC had no objection to paying the claim. The judge agreed and ordered a judgment before the lawsuit went to trial.

UAIC appealed and three circuit court judges sitting in their appellate capacity agreed that UAIC never promised to pay the medical bills. The judges unanimously ruled that while insurance coverage cannot be forfeited, it also cannot be created where it doesn’t exist. And any agreement to change the effective date – or time – of coverage cannot come after a lawsuit is filed.

It’s obvious to us that any responsible driver that you should have insurance before you get behind the wheel. You cannot force an insurance company to pay for an accident when no insurance policy was purchased or in effect. That’s plain common sense.

The appellate court agreed with our reasoning and granted UAIC’s motion for attorney fees. The court found the appeal was frivolous as there was no reasonable basis in fact or law to uphold Landau’s argument that coverage should exist despite no insurance policy being in effect. Landau wrote a check to UAIC for $15,250.

Wasting the court’s time and money: an appeal for $1.19

Monday, December 14th, 2009

Is it worth suing over $1.19?

One Miami-Dade attorney seems to think so, especially when you can bill about $400 an hour in legal fees.

Attorney George David of George A. David, P.A., Coral Gables, is asking a panel of appeals court judges in Miami-Dade Circuit Court for $1.19 — plus his fees, of course — in payment related to an auto accident injuries claim. At issue is not whether his client got paid, it did, but whether the client was shortchanged. David says “yes” in his appeal, but legal precedents say he should not be wasting the court’s time and the taxpayer’s money.

Miami-Dade County Court Judge Lawrence King had awarded David’s client, Stand-Up MRI of Miami, $16.38 in interest on a bill payment. United Automobile Insurance Co. sent a check for $20. The response? Not that the judge erred in calculating the interest owed; that was never contested. The amount billed was also not contested.

Rather than asking the county court to correct its judgment, David appealed to circuit court, claiming a little more interest and a lot more in legal fee.

The law has a term for minuscule differences that waste court and professional time: De minimis no curat lex, which translates to “the law does not care about small things.” Disputes over a dollar or two, or even 10, do not deserve the court’s time. And taxpayers should not accommodate attorneys who waste the money spent processing such appeals.

In fact, the Florida Bar has sanctioned attorneys for such behavior. One attorney appealed for an additional 23 cents in 2007. The Florida Bar complained about his behavior to the Florida Supreme Court, which barred the attorney for 91 days. In its opinion, the Court said of the attorney, “The pettiness of his behavior hurt his clients, the opposing party, and ultimately, the profession…”

Sadly, that incident was not an isolated one. And this is not David’s only instance of running the legal meter for matters worth no one’s time.

United Auto is committed to fighting needless and unjustified billing of auto insurance claims in an effort to reduce the financial burden on its policyholders, the general public and the company. The company will expose abuses of the insurance system and the courts in an effort to promote reform of the legal system.