Detailed Answer
Understanding Shared Policy Limits
In New Mexico, a shared insurance policy divides its total limit equally (or as defined in the policy) among all covered defendants. When a claimant’s total damages exceed that joint limit, the insurer pays only up to its maximum. The remaining balance becomes an unpaid debt owed by the individual tortfeasors.
Pursuing the Insurer’s Duty to Settle
Under NMSA 1978, § 56-8-20, insurers must act in good faith to avoid exposing their insureds to excess judgments. If you present a bona fide settlement demand within policy limits and the insurer unreasonably refuses to settle, you may have grounds for a bad-faith claim against the insurer.
Bringing a Civil Lawsuit Against Multiple Defendants
If the shared limit is insufficient, file suit against each at-fault party for the unpaid portion of your damages. Your complaint should itemize past and future medical expenses, lost earnings, pain and suffering, and other recoverable losses.
Applying the Uniform Contribution Among Tortfeasors Act
New Mexico’s Uniform Contribution Among Tortfeasors Act (NMSA 1978, § 41-3-1 et seq.) lets you seek contribution from other defendants who share liability. After you pay more than your fair share, you can recover proportional amounts from co-tortfeasors.
Apportionment of Damages Under Comparative Fault
Under the Apportionment of Damages Act (NMSA 1978, § 41-3A-1), each defendant’s liability is based on their percentage of fault. If any defendant is more than 50% responsible, they become jointly and severally liable for the entire judgment, ensuring deeper pockets are held fully accountable.
Enforcing Your Judgment
Once you obtain a money judgment, use post-judgment remedies such as wage garnishment, bank account levies, or property liens to collect the unpaid balance. Monitor statute of limitations and renewal requirements to keep your judgment enforceable.
Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Make a clear written settlement demand within policy limits to trigger the insurer’s duty to settle.
- Collect documents showing each defendant’s fault percentage (photos, expert reports, witness statements).
- Review the Uniform Contribution Among Tortfeasors Act early to understand your rights to recover from co-defendants.
- Consider including a bad-faith claim if the insurer refuses a reasonable settlement.
- Track deadlines for post-judgment collections and renewals to avoid losing enforcement rights.