| Persistent Legal Work Pays Off - Injury In An | | | | this, we had to rely on a theory of law called the |
| Accident Whos held Liable? | | | | relation back doctrine. This legal doctrine holds, in |
| Here is an example of how extra effort and | | | | part, that if a party who is not named in the lawsuit |
| attention to detail can substantially raise the value of | | | | is closely related to the parties that are and, that |
| a personal injury case. | | | | party is aware of the claims and, that party knows it |
| Taxi owners in New York consistently create | | | | should have been named, in the first place, it can be |
| individual corporations for each taxi medallion/taxicab, | | | | added to the lawsuit, even if the statute of |
| even if they own dozens. This case involved a very | | | | limitations has run out. Here, we argued that not only |
| sophisticated businessman who owned approximately | | | | were those elements met but, that if it weren't for |
| a dozen taxi cab companies, each of which operated | | | | the sneaky way the companies were set up, we |
| as part of a larger enterprise but, appeared to the | | | | would have known they were viable defendants |
| public to be individual operations. At the time I took | | | | from the outset. |
| over the case, it appeared that our client, who had | | | | The second problem was that even after we named |
| lost his leg from the knee down as a result of the | | | | all these different companies it was unclear to what |
| accident, would be limited to the minimal (twenty five | | | | extent each one would be responsible for our client's |
| thousand dollar) policy on the car that hit him. | | | | injuries and, it was also unclear how much insurance |
| Fortunately, after some hard work and effective | | | | coverage they would have to satisfy his claims. To |
| motion practice we were able to negotiate a | | | | complicate matters, several of the companies had |
| settlement of close to one million dollars, still less than | | | | been dissolved and, it was unclear what, if any |
| what the injury would have been worth in a clear | | | | assets any of them actually owned. Here we got |
| liability case but, almost forty times what he stood to | | | | lucky. |
| get before the work was done. | | | | In the time between the accident and the addition of |
| The cornerstone of the revised strategy arose at | | | | these other parties to the lawsuit, the owner of the |
| the defendant's deposition. The witness, a dispatcher, | | | | companies had sold all of them, lock, stock and |
| testified that she was employed by the same | | | | barrel, to Coach Transportation, the giant Canadian |
| company that owned the cab but, when I pressed | | | | bus company. While this still left open the issue of |
| her to produce a pay stub, which she had in her | | | | whether we could actually prove Coach was liable, it |
| pocket, we found out she was actually employed by | | | | eliminated the questions about whether there would |
| one of the other companies owned by the same | | | | be any money available at the end of the day to |
| man. We then learned that the dispatch office, | | | | compensate our client. |
| garage, book keeping staff, etc., were all shared | | | | Ultimately, after some further discovery, including a |
| among the various companies. | | | | long, intense deposition of the former owner that |
| My research turned up a New York State Supreme | | | | revolved mainly around the maze of corporations he |
| Court case from a few years earlier that dealt | | | | had created and the way they worked together, we |
| favorably (for our purposes) with a similar situation. | | | | settled for close to a million dollars. |
| The court in that case held that when a group of | | | | As I noted above, this was a discount for a below |
| companies operates as a single entity but, presents | | | | the knee amputation, even in a conservative venue |
| itself as discrete corporations, it constitutes a "fraud | | | | like Nassau County but, even though we won on |
| upon the public" which can be redressed by holding all | | | | some important procedural issues that allowed us to |
| the companies and maybe even the principals liable, | | | | add the other companies and, ultimately Coach, as |
| instead of limiting the injured party's right to recovery | | | | defendants, there was a serious question as to |
| to just the one, small corporation with no assets and | | | | whether, when push came to shove, the case could |
| minimal insurance coverage. The theory was | | | | actually be proven against them. If it couldn't, our |
| applicable but, there were several obstacles to | | | | client would be stuck with the same twenty five |
| overcome. | | | | thousand dollars that was on the table from the get |
| The first problem was that the statute of limitations | | | | go. In the end, he made the right decision. He would |
| had long since run out on the case, meaning that it | | | | have been taking too big a risk by taking the case to |
| was too late to start a new lawsuit naming the other | | | | trial. |
| corporations as defendants. In order to overcome | | | | |