Large legal settlements in the headlines often leave readers assuming a legal conclusion to a horrendous event involving multiple fatalities and severe injuries.
But multi-million dollar settlements often result from relatively ordinary activities and incidents – and to a single victim.
Take the example of Michelle Danicek who, earlier this month, was awarded almost $6 million for injuries received while dancing at a bar in 2001.
Ms. Danicek was articling with a B.C. law firm and had attended a firm-sponsored associates’ dinner. Late into evening, Ms. Danicek and some colleagues left the restaurant, heading to a bar. Around 12:30 a.m., a male colleague approximately twice Ms. Danicek’s size, fell backwards while on the dance-floor, toppling Ms. Danicek and causing her to strike her head.
Initially Ms. Danicek’s injuries seemed minor. But significant problems including nausea, vomiting and persistent and severe headaches resulted, together with other cognitive deficiencies noticed within days by co-workers.
Ms. Danicek sued her employer, the colleague that stumbled upon her, the restaurant, and the bar.
During a trial lasting almost 30 days, the B.C. Supreme Court heard evidence that both had been drinking, but went on to award the plaintiff $5.9 million.
How did the judge arrive at such a figure??
The calculation was complicated, but the largest part – $5.1 million – was for projected future income. Numerous assumptions go into that calculation – but large awards are not uncommon when a person’s future earning potential is severely curtailed by the actions of another.
All of which leads to the question: if your vehicle or personal actions (or those of a dependent) resulted in a serious injury, would you be adequately protected by your liability policies??
Tags: advice, claims, coverage, danicek, insurance, Liability, risk, settlement
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M.R.
September 1, 2010 at 10:38 am
This would be a good example as to why we should all
carry an umbrella policy, and increase our property and automobile liability limits.
jp
September 1, 2010 at 1:34 pm
there is no such thing as too much liability coverage.
SL
September 1, 2010 at 1:43 pm
Definately a good idea to increase liability limits whenever possible… so often the increased cost is not as much as most people think!
MB
September 1, 2010 at 2:19 pm
This is why a broker should be advising you to purchase as much liability coverage as you can afford
KH
September 2, 2010 at 8:04 am
A good insurance broker will recommend higher limits to protect you for unforseen incidents such as this. Even then, you may not be adequately protected, but $5,000,000 coverage is better than $500,000 or even $1,000,000.
Kim
September 2, 2010 at 8:06 am
A good insurance broker will provide you with advice and recommendations. A good recommendation is to buy as much liability insurance as you can afford. An umbrella policy of $5,000,000 coverage would certainly have helped in this situtation!
pl
September 2, 2010 at 8:21 am
It makes me angry … If I was a pub/bar owner I would
be held responsible for someone’s actions.
If i was to serve refreshments in my home- before my guest leave – could I ask them to sign a waiver holding
me not responsible. Would this waiver protect me , and
stand up in court.
SD
September 2, 2010 at 9:22 am
I agree with Peter. I think it is ridiculous what people try to sue for today and what they are awarded. Once again, it only stresses the importance of an insurance broker being an advisor and advocate and encouraging higher liability limits.
HG
September 9, 2010 at 10:10 am
in today’s society the public are looking for easy money. There are people out there that will stage accident just to get a quick settlement. It is a good idea to have as much liability limit as you can possibly afford for your peace of mind.
The Risk Factor - Large legal settlements – but are they ever really paid?
May 26, 2011 at 4:02 am
[...] the example of Michelle Danicek (The Risk Factor, Sept 1st, 2010). In 2001, Ms. Danicek was injured on a dance [...]