Lawsuit On Auto Insurance Claim Proceeds Even Though Amount Being Sought Is…Who Knows?

United Automobile Insurance Company, a property and casualty insurer focusing on automobile insurance and premium finance, recently launched the United Auto Courts Report (http://www.unitedautocourtsreport.com/blog) for the purpose of reporting on how South Florida courts are misused in personal injury protection lawsuits.

Here is a lawsuit that needs to go away, if for no other reason that it is a waste of time and money. A client of Coral Gables attorney George David of George A. David, P.A., has sued in Miami-Dade County court for as little as 17 cents as and no more than $9.63. Just how much? No one knows. David is not saying.

This type of litigation has prompted United Automobile Insurance Company (United Auto) to step up its fight against needless and unjustified billing of auto insurance claims. Ultimately, policyholders, taxpayers, and insurers pay the costs of large demands for tiny sums. Court reform is needed to clear the dockets for more substantial matters of law and speed the justice system.

The dispute started almost five years ago, when a United Auto policyholder sought reimbursement for an MRI related to an automobile accident claim. After deductions and such, the company issued three checks: one for $139.83 for benefits, a second for $30.89 in interest expenses, and a third for $19.19 in demand penalty and postage fees.

Did that satisfy the customer? Apparently not. In March 2008, David sued on behalf of the client, claiming extra interest was due. Three months later, the three checks were cashed and David did not specify a dollar figure. As of early December 2009, the lawsuit was still pending but the claim amount remained a mystery.

As part of the lawsuit, a litigation adjuster calculated just how much more might be owed to David's client. The answer: as little as 17 cents and no more than $9.63.

United Auto has asked the judge to throw out the lawsuit, arguing in part that, "One can only conclude that the lawsuit was filed solely for the purpose of billing attorney fees."

In Miami-Dade County Court, judges routinely award attorneys fees ranging from $300 to $500 per hour for simple fender-bender accidents.

An isolated incident? No. In May 2009, the 13th Circuit Court heard an appeal from a medical provider for an additional 89 cents in interest. The court ruled against the provider, saying it had used the wrong interest formula.

Administrative Judge James M. Barton, who was on the panel that heard the appeal, wrote in his opinion that attorneys for both sides, a county court and the circuit court had spent considerable energy on the case. He stated, "In my view, the time has come to say, 'Enough!'" The court should not spend its time on unimportant matters. Barton also noted that as long ago as 1858 the Florida Supreme Court refused to send back to trial a demand for less than $11 in interest.

"The court showed good judgment then. It's time for all Florida courts to follow the same practice."

"The PIP fraud is just so prevalent, and we believe it is driven 100 percent by the staggering legal fees being awarded to PIP attorneys representing unscrupulous storefront clinics and imaging centers," said Richard Parrillo, Sr., Founder and CEO of United Auto Insurance Company. "There is no question that these cooperative arrangements amount to organized PIP fraud rings, but unfortunately, the laws are full of loopholes and the penalties for committing the fraud equate to a slap on the wrist. Something needs to be done about this untenable situation that is costing Florida's drivers hundreds of millions of dollars each year."

ABOUT UNITED AUTO COURTS REPORT

Florida drivers are paying some of the highest insurance premiums in the country as a result of the fraud being committed by sometimes organized rings of runners, healthcare providers and PIP attorneys that has been milking the system since the inception of Florida's no-fault auto insurance system. This has caused most insurance companies writing minimum limits auto insurance to go out of business, making this type of insurance less available and much more expensive.

What's more, the Office of the Department of Insurance Regulation has stated that more than 80% of all automobile accident injury claims are in fact fraudulent.

United Automobile Insurance Company has been at the forefront of fighting this monumental fraud problem in the Florida Legislature and in county, circuit and appellate courts. But this battle has been very expensive and seemingly unwinnable in part to what the company sees as an uneven playing field in Miami-Dade and Broward County courts.

The United Auto Courts Report blog updates its readers on the cases, verdicts and appellate decisions that impact the state of Florida's automobile insurance market.

ABOUT UNITED AUTOMOBILE INSURANCE CO.

Founded in 1989, United Automobile Insurance Co. is a property and casualty insurance company specializing in automobile insurance. The company is committed to providing its agents and their customers a quality product with state-of-the-art processing and claims service. Through its affiliates, UAIC provides a variety of insurance-related services including premium finance, claims processing and advanced on-line sales products.

UAIC, its executives and employees are involved in the communities the company serves. They support a host of organizations such as The Mike Lowell Foundation, Miami Children's Hospital, Children's Home Society, Heartsight Miami, The Boys and Girls Club of Broward County, St. Jude Hospital, Do The Right Thing, Florida's Children First, President's Fest in the Park, Aspira, The PASS Program and Switchboard Miami. Additionally, UAIC supports law enforcement programs, training and has funded the Fallen Officer Memorial in Tropical Park.

UAIC offers auto insurance in 12 states and continues to expand its reach each year. The key to the company's growth and success is its commitment to providing quality service to its agents and customers, disciplined underwriting, and fast and fair claims handling. For more information, visit www.uaig.net.