Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
1. Understanding Shared Policy Limits
When multiple at-fault parties share a single liability policy, each defendant’s potential liability is capped by the policy limit. Once that limit is reached, any remaining medical bills, lost wages or property damage go unpaid unless you pursue other avenues of recovery.
2. Michigan’s Proportionate Liability and Contribution
Under Michigan’s Uniform Contribution Among Tortfeasors Act, MCL 600.6304, one defendant who pays more than their fair share can seek contribution from other liable parties. See MCL 600.6304: https://www.legislature.mi.gov/mcl?Sec=600.6304. Additionally, Michigan uses a comparative-fault system under MCL 600.2925. Each defendant’s share of fault determines their portion of damages. For full text, visit: https://www.legislature.mi.gov/mcl?Sec=600.2925.
3. Steps to Seek Additional Damages
- Include all at-fault parties in one complaint. Demand damages that exceed the shared policy limit.
- Serve each defendant personally. If the insurer’s limit is exhausted, notify the insurer in writing and preserve any subrogation rights.
- File for contribution under MCL 600.6304 if one defendant pays more than their percentage of fault.
- Proceed to trial or mediation, presenting evidence of each party’s negligence and financial exposure beyond the exhausted limit.
4. Exploring Alternative Coverage
Check your own auto policy for underinsured or uninsured motorist (UIM) coverage. UIM can fill gaps left by an exhausted liability limit. Consider umbrella or excess liability policies if you face a serious shortfall.
5. Practical Court Considerations
Use discovery tools—interrogatories, requests for production and depositions—to identify each party’s assets and insurance. File motions to compel if a defendant refuses to disclose relevant information.
Helpful Hints
- Gather clear documentation: medical records, repair estimates and wage-loss statements.
- Track policy limits and obtain a coverage letter from the insurer.
- Seek an early case evaluation with a civil litigator familiar with multi-defendant negligence claims.
- Review your personal insurance for UIM or umbrella coverage to cover any shortfall.
- Be aware of Michigan’s statute of limitations: 3 years for most negligence claims under MCL 600.5805. https://www.legislature.mi.gov/mcl?Sec=600.5805.