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Allstate Must Pay Injured Motorists $16 Million
Posted by: Christopher Hoffmann
July 31, 2008

The lives of Edward and Virginia Johnson were forever changed on March 24, 2000. That's the day Wayne Davis Jr. - despite having a blood alcohol level twice the legal limit - got behind the wheel of his pick up truck. Davis crossed the center line on U.S. 54 in Camden County and crashed head-on into the Johnsons' car.

The couple survived the near fatal crash but suffered horrific injuries. Edward was hospitalized for 35 days, 21 of them were in a neuro-intensive care unit. For a portion of the time in NICU, Edward was in a coma. For the lengthy stay as well as treatment of a broken arm, crushed pelvis, a hip that was torn from its socket, a crushed sternum, a broken collar bone, and a thumb amputation, the hospital charged him $185,000.

Virginia also spent some of her 40 days in the hospital in the NICU. For the six surgeries needed to treat her crushed right ankle and kneecap, a broken femur, a dislocated ankle and a cut eyelid, the hospital billed her $135,000.

In addition to the strain of recovering from the life-threatening injuries, the couple had a 16-year-old daughter at home they needed to make sure was taken care of not only emotionally but financially.

Three days after the accident, Davis contacted his insurance agent and informed him of the crash. The insurance agent called Allstate and advised the company that their insured admitted he'd been drinking, that he drove on the wrong side of the road, he had hit another vehicle head on, and the two people who were seriously hurt had to been taken to the hospital by helicopter.

The couple contacted Davis' insurance carrier, Allstate, and offered to settle for his $50,000 policy limits. Even though Missouri law gives insurance carriers 60 days to accept an offer, it took Allstate more than 6 months to respond.

Fortunately, the Johnsons had hired a lawyer who knew about the time limits and understood that his clients had legal options open to them.

After Allstate failed to settle, the Johnsons sued Davis. Davis then agreed to a judgment against him for $5 million including $1.5 million in punitive damages. In return, the Johnsons agreed they would not try to collect from Davis personally. Instead, Davis and the Johnsons could jointly sue Allstate for bad faith refusal to settle a claim.

A Jackson County jury concluded that Allstate had acted in bad faith and awarded compensatory damages of $5.8 million plus nine percent interest since the date of the consent judgment. The jury also hit Allstate with $10.5 million in punitive damages.

On July 29, the Missouri Court of Appeals for the Western District of Missouri upheld the verdict in Johnson, et al. v. Allstate Insurance Company. Presiding Judge Paul M. Spinden wrote:

"Allstate's failure to recognize the severity of the Johnsons' injuries and the probability that the claim would far exceed Davis's policy limits; its failure to investigate the claim and respond to the demand in accordance with the insurance industry standards and its own good faith claim handling manual; and its failure to advise Davis of the demand, his likely exposure for an excess judgment, and his right to retain counsel, are all circumstances supporting a reasonable inference that Allstate's refusal to settle was in bad faith."

This decision is important because it holds Allstate accountable for its actions. Hopefully, Allstate will be more responsive in the future, especially in cases involving serious injuries like those suffered by the Johnsons.

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Car Crashes Are a Leading Cause of U.S. Deaths
Posted by: Christopher Hoffmann
July 24, 2008

In 2005, the leading cause of death for children between the ages of three and six were car crashes. For those between the ages of eight and 34, auto accidents were also the number one killer. Unfortunately, motor vehicle accidents ranked third overall in terms of lost years of life.

The data was recently released by the National Highway Traffic Safety Administration. The NHTSA's National Center for Statistics examined the top ten leading causes of death in the United States in 2005 and discovered that motor vehicle accident played a prominent role. In terms of overall leading causes of death for the entire U.S. population, car crashes ranked ninth, claiming over 43,000 lives in 2005.

At the Hoffmann Law Firm, we only handle motor vehicle accident claims. We know that a car crash can change your life, and the lives of those you love, forever. We are dedicated to helping you get the compensation you deserve. Our goal is to assess your claim and help you understand how much compensation you will need to cover present and future expenses, lost wages, property damage, and pain and suffering.

At the Hoffmann Law Firm, we hope you can avoid a future accident. However, if you were unfortunate enough to be involved in one, rest assured that help is available. Please schedule a free consultation with motor vehicle accident attorney Chris Hoffmann by calling us at 314.480.3378 or filling out our personal injury intake form.

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Teen Drivers and Texting
Posted by: Christopher Hoffmann
July 10, 2008

Teenagers who send text messages while driving not only place themselves in danger, they run the risk of hurting, even killing, other motorists.

In a survey of 1,000 teenagers conducted by AAA last summer, 61 percent admitted to risky driving habits. Of that 61 percent, 46 percent said they text message while driving and 51 percent chat on their cell phones while behind the wheel.

William Van Tassel, the manager of AAA Driving Training, remarked at the time:

"Motor vehicle crashes are the number one killer of teens claiming more than 6,000 15- to 20-year-olds each year. Inexperience behind the wheel coupled with poor decision-making ability make it even more important for teens to stay focused when driving."

As a result, some states are clamping down on teen texting and driving. This month, a California law goes into effect which bans 16- and 17-year-olds from sending text messages or talking while driving, except in an emergency.

The same law requires adult drivers to use hands-free devices when talking on a cell phone but does not specifically prohibit adults from texting.

As the Associated Press notes, the law is part of a recent nationwide trend that is calling attention to the dangers of multitasking while driving. This past year, 33 states considered bills that would have tackled the question of driver distraction.

Whether you're a teen or an adult, multitasking on the road is not an intelligent choice. Sending text messages, talking on the cell phone, shaving, putting on make-up and reading are not compatible with driving.

At the Hoffmann Law Firm, we hope you can avoid a future accident. However, if you were unfortunate enough to be involved in an auto accident, rest assured that help is available. Because car and truck accidents are all we do, please schedule a free consultation with motor vehicle accident attorney Chris Hoffmann by calling us at 314.480.3378 or filling out our personal injury intake form.

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