A friend of mine in New York is facing a lawsuit from a patient who is seeking $500,000 in damages. The patient has expressed a willingness to settle for $100,000 and an apology. However, my friend’s malpractice insurance is also amenable to settling for the same amount, but he refuses to apologize and prefers to take the case to court. The patient’s lawyer has advised him that he is not required to settle, meaning my friend’s insurance would have to defend him in court.
I’m not sure of the circumstances behind the lawsuit, but many people are advising him to settle and move on. If he loses, there could be serious financial repercussions, especially since the claim is for $500,000. I believe he has a coverage limit of $2 million, but I’m just curious about the potential fallout if he chooses not to settle.
Just to clarify, I’m not seeking legal advice, nor am I trying to give any. My friend has already obtained legal representation, and I wouldn’t want to influence his decision in any way. I’d prefer not to ask him directly about the risks of not settling, as I don’t want to prompt him to reconsider his stance or have him feel pressured one way or another. Ultimately, it’s his choice to make, and I want to respect that without adding to his stress.
It’s understandable that you want to avoid influencing your friend’s decision while also being curious about the implications of not settling. If your friend refuses to settle and the case goes to court, several outcomes are possible:
Potential for Larger Award: If your friend loses the case, he could be liable for the full amount of the claim, which is $500k in this case, assuming the court rules in favor of the patient. This could also lead to additional legal costs for your friend.
Insurance Coverage: Since he has a $2 million per coverage limit, his malpractice insurance should cover the costs if he loses, but it’s important to review the specifics of the policy. If the judgment exceeds what the insurance will cover, he could be personally liable for that excess amount.
Legal Fees: Even if the insurance covers the settlement amount, if the case goes to court, your friend may still incur legal fees that could add up significantly.
Professional Reputation: The case and any resulting judgment could impact his professional reputation, especially if it leads to negative publicity.
Time and Stress: Going to court can be a lengthy and stressful process. This emotional toll can be significant, impacting personal and professional life.
Ultimately, the decision to settle or go to court is complex and personal. Your friend’s feelings about the apology and the principle behind the case weigh heavily on his decision. It’s good that you’re looking out for him without pressuring him. Supporting him emotionally might be the best way to help as he navigates this situation.