There are probably no four words in the English language that can give you alarm in quite the same manner as hearing someone say “you have been served” for the first time. You look at the serving officer or investigator almost dumbfounded as your mind races to answer the question “Why me?” After fumbling through the papers you realize that you have been sued over a car accident that may have happened as far back as two years ago. So what happened next?
After getting sued over a car accident in Texas, undoubtedly you are going to have many questions to ask an accident attorney ranging from what you do to what are the consequences of your choices. In short, do not panic. The main thing to remember is to immediately turn it over to the liability insurance carrier by whom you were covered at the time of the wreck.
What should I do after being sued over a car accident in Texas?
When you are sued over a car accident in Texas, your first notice will be when the process server serves you with legal papers. The first thing you should do is call your auto insurance company and report that you have been sued and let them know that you request they provide you with a defense. Their contract obligates them to provide you with a lawyer to defend you so long as you take no steps that void your contract.
You only have a limited amount of time to file an Answer after you are sued over a car accident in Texas or the court will assume you admit the other side’s allegations and grant a default judgment. You have until 10:00 a.m. on the first Monday following the expiration of 20 days after the date you were served to file your Answer. Thus, you do not want to delay in notifying your insurance company and turning over the papers you were served with to them. They will need time to retain counsel and get the information to them.
What if I did not have auto insurance at the time of the wreck?
If you fail to carry the minimum insurance limits required by the Texas Financial Responsibility Act, then you are going to need to hire an attorney to defend you and pay them out-of-pocket. You can defend yourself in Texas, however, this is ill-advised. Texas Judges expect you to know all the laws and rules when you walk into the courtroom and will not take time to educate you. Opposing counsel cannot ethically give you any legal advice because they represent your adversary. If you miss a deadline because you do not know the filing periods, you may have your pleadings stricken and/or have a default judgment taken against you.
What if I was driving someone else’s car?
In Texas, insurance coverage follows the vehicle first and the person second. This means that if there was an insurance policy on the vehicle that does not exclude you from coverage, then that policy is the primary insurance and must treat you as their insured for purposes of the accident. If they fail to have sufficient liability coverage or you are excluded, then any other auto policy on which you are the named insured becomes responsible.
Should I notify the insurance on the car or my own insurance if I am sued?
If a lawsuit is filed against you and you were driving someone else’s car at the time you caused an accident, you would be wise to notify both insurance companies of the lawsuit in writing and via a phone call, SInce time may be of the essence, giving them as much notice justifies a phone call, but you also want to have proof you notified them. A certified letter with a return receipt requested or an email with proof of receipt (a response email from the company) are both good documentation.
Why am I being sued for a car accident instead of my insurance company?
In the state of Texas, a person who is caused injury by another’s actions must sue the individual actor and not his insurance company. The plaintiff has no choice in the matter because the Texas Supreme Court has held that there is no direct cause of action against the other driver’s insurance company. You can, however, sue your own insurance company when you are entitled to benefits such as uninsured or underinsured motorist benefits.
Suing My Insurance vs Their Insurance
Understanding when you may sue an insurance company can be confusing in Texas. When a person causes a wreck, the victim has a cause of action for negligence against the offending driver. So he may sue that driver directly. That driver has a contract with his own insurance company that says the insurance company will 1) provide him with a defense when sued and 2) pay any judgment up to the limits of their policy. They may be liable for more than the policy limit if they fail to timely respond to a valid Stowers demand letter sent by the plaintiff’s lawyer. However, the person hit has no direct contract with the other driver’s insurance company. Since the insurance company did nothing to cause the wreck (were not negligent) and you have no contract with them, you have no basis to sue them directly. With regards to making claims on your own policy, however, you can sue them because you have a direct contract with them. Thus, you may be able to sue yours for denying benefits, but you may not sue their insurance company for denying benefits.
Can they put me in jail in a personal injury lawsuit?
Jail time is not a remedy available in a civil personal injury lawsuit. You can be charged with a crime as a result of a car accident if you were committing a crime when it happened (such as driving under the influence). However, that is a matter for the police and not for civil attorneys handling the personal injury claim.
What happens if I do nothing after being served with a lawsuit?
If you are served with a lawsuit and fail to file an Answer on or prior to 10:00 am the first Monday after 20 days expire from the date of service, then the court, on motion of counsel, may enter a default judgment. If you continue to do nothing, the plaintiff will set a hearing and prove up the value of their damages so that a final judgment can be entered. After the Judgment is entered, they may begin trying to collect on the judgment. (See my prior blog Suing Uninsured Drivers for a discussion of what assets a judgment may be executed on for collection.) You may also seek an attorney to help you challenge the judgment. However, it is a much easier burden to defend the case before a judgment is entered than afterward.
Conclusion
If you are sued over a car accident in Texas, the best thing to do is pick up the phone immediately and report it to your auto insurance. You need to provide them with the papers and request they provide you with a defense. From that point on, you need to cooperate with them so that they can defend you and no judgment is taken against you.
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