A friend of mine in New York is facing a lawsuit, and he’s reluctant to settle even though his insurance company is suggesting he do so. He’s being sued by a patient for $500,000, but the patient is willing to settle for $100,000 along with an apology. While my friend’s malpractice insurance is ready to cover the settlement amount, he prefers to go to court because he doesn’t want to offer an apology. The patient has made it clear that they won’t settle without one. The patient mentioned that his lawyer told him he has no obligation to settle, and that the insurance company will have to defend my friend.
I’m not sure about the details of the lawsuit, but a lot of people are advising him to settle and move on. I’m curious about the potential consequences he might face if he loses the case and is ordered to pay the full $500,000, especially since he has a $2 million coverage limit. Just to clarify, I’m not seeking legal advice for him—he has a lawyer for that. I simply have some curiosity about what could happen if he decides against settling, and I’d rather not bring this up with him directly. I respect his decision-making process and don’t want to unintentionally influence his choices or contribute to any regrets he might have later on.
Edit: I want to emphasize that I’m not looking for legal advice—either for him or to give to him. He has a lawyer, and my questions are purely out of curiosity. I don’t want to put any pressure on him regarding his decision to settle or not.
It’s understandable to be concerned about your friend’s situation. If he chooses not to settle and goes to court, there are a few potential consequences he should consider:
Higher Costs: Going to court can be expensive. Legal fees, court costs, and other related expenses can add up quickly. If he loses, he might end up paying significantly more than the settlement offer.
Emotional Toll: Litigation can be stressful and time-consuming. The emotional burden of a court case might weigh heavily on him, especially given the personal nature of a lawsuit involving a patient.
Reputation: Depending on the outcome, a public court case could impact his professional reputation, regardless of whether he wins or loses.
Insurance Implications: If he has a $2 million malpractice coverage and the jury awards the patient the full $500k, his insurance should cover it as long as it falls within the terms of the policy. However, there are limits, and excessive claims could affect his premiums or future coverage.
Potential Award: If he loses the case, the court could award the patient not just the initial claim amount, but potentially even more, depending on the circumstances.
Ultimately, while it’s his choice to make, it can be helpful for him to weigh these factors alongside his desire not to apologize. Supporting him in fully understanding the implications of his decision, without pushing either way, is a great way to be a good friend.