Can I still be sued even if my insurance company settles?

I live in Michigan,a no fault state. My daughter was involved in a minor
accidentno injuries in a parking lot. It was her fault, but the other car owner
did not have full coverage on his car. he contacted my insurance company and
wanted 3800 in punitive damages for his car. The max he can get from my
insurance company is 1000. If he takes the 1000 from my insurance can he still
come after me at a later time and attempt to get more money from me in small
claims court?

Asked on April 28, 2016 under Accident Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, he can still sue you is he did not sign an agreement (a settlement agreement) stating that he would accept the payment as payment in full of any and all claims and not sue; in the absence of a settlement agreement, a plaintiff (person suing) can take the money, apply it against the amount owed him, and sue for the rest or balance. E.g. if he can prove that you did $3,800 of damage to his vehicle (or otherwise cost him $3,800, such as in towing charges, lost wages, renting a replacement car while his is fixed, etc.) and your insurer pays him $1,000, he could potentially get the other $2,800 from you, if he did not sign a settlement agreement prevening him from doing so.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.