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Every year, countless Californians and visitors suffer serious injuries in auto accidents, with many unable to return to work either temporarily or permanently. This unfortunate reality underscores the importance of understanding the legal avenues available for financial relief, particularly regarding unemployment benefits and lost wage claims.

When you are sidelined by an accident, the mounting bills coupled with lost income can lead to immense financial strain. In California, you may seek compensation not only for your medical expenses but also for wages lost due to your inability to work.

How Unemployment Benefits Work in California

On May 21, 2024, a Los Angeles jury awarded a historic $58,358,431 verdict to a Palmdale technician who suffered serious injuries when he slipped on ice while performing electrical repairs on top of a train car. The judgment is the largest known slip-and-fall verdict in U.S. history.

PARRIS Partners Alexander R. Wheeler and Khail A. Parris represented the Plaintiff during the three-phase, six-week trial.

The Injury

According to the lawsuit, the 39-year-old Plaintiff was working for Altech Services, Inc., a railroad contractor that provides electrical services for businesses across Los Angeles County. In February 2016, the Plaintiff was working at a Kinkisharyo International train facility in Palmdale, California. Kinkisharyo employees told the Plaintiff to complete electrical work on top of a train within three short hours.

After climbing on top of the train, the Plaintiff took a few steps before slipping on water that had pooled overnight. His left foot slid forward and became lodged in a grouping of electrical wires on top of the train. The weight of his tool bag and wires around his shoulders pulled his body forward and down, hyperextending his left ankle and knee. As a result, the Plaintiff suffered a micro-fracture in his foot that would become much worse over time. The Plaintiff eventually required invasive foot surgery that developed into Chronic Regional Pain Syndrome (CRPS), a neurological condition that involves long-term pain and inflammation following an injury.

In 2020, he underwent additional surgery for severe neck and back injuries caused by his fall. Multiple doctors and specialists determined that the Plaintiff would need significant ongoing treatment to manage his pain — including surgeries and a spinal cord stimulator, an implanted device that helps treat chronic pain.

The persistent and severe pain the Plaintiff has experienced since his fall continues to limit his ability to carry, lift, push, pull, twist, and bend. In combination with other ongoing symptoms, the pain prevented the Plaintiff from working.

The Lawsuit

Shortly after the Plaintiff’s fall in 2016, an employee at Kinkisharyo helped the Plaintiff file a worker’s compensation claim for his injuries. However, Kinkisharyo denied the Plaintiff’s claim, arguing he was an employee of Altech Services, not Kinkisharyo.

As a result, the Plaintiff hired PARRIS to file a personal injury lawsuit against Kinkisharyo.

The complaint alleged that the Plaintiff’s fall resulted from a longstanding pattern of mismanagement and negligence by Kinkisharyo. On the evening leading up to the incident, a Kinkisharyo foreman instructed employees to perform a water test on top of the train but did not make sure the surface was properly dried before the Plaintiff arrived.

According to the complaint, this Kinkisharyo foreman required employees to work at a pace so demanding that they often had to compromise workplace safety protocols.

Multiple Altech and Kinkisharyo employees testified that they previously complained about dangerously wet conditions on top of the trains. Employees also reported there was not enough overhead light at the train factory, making an already hazardous job even more dangerous.

The Trial

After filing his lawsuit, the Plaintiff offered to settle the case with Kinkisharyo multiple times. In March 2022, Plaintiff made an offer of $3,000,000. Kinkisharyo offered $752,000 before trial, which the Plaintiff rejected.

The case went to trial in Los Angeles in the spring of 2024 and was divided into three phases.

In the first phase, the jury unanimously rejected Kinkisharyo’s argument that the company, along with Altech, was the Plaintiff’s joint employer. The company argued that because it had an employer-employee relationship with the Plaintiff, the Plaintiff was only allowed to seek relief for his injuries through the workers’ compensation system, not a lawsuit.

PARRIS attorneys argued to the jury that this stance contradicted what Kinkisharyo said years earlier when it first rejected the Plaintiff’s worker’s compensation claim: that the Plaintiff was not its employee. The jury agreed.

In the second phase, the parties disputed how the Plaintiff fell and whether it led to his injuries. They also refuted his diagnoses and the nature and extent of his damages.

The jury rejected all of Kinkisharyo’s arguments and found in favor of the Plaintiff — awarding him compensatory damages of $54,158,431.00.

The final phase assessed whether Kinkisharyo should pay punitive damages, which is an award that would punish and deter them from future unsafe practices. The jury agreed and awarded the Plaintiff an additional $4,200,000.

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The verdict is the result of the hard work PARRIS attorneys put into each and every case. Every employee has the right to work in conditions where their safety is taken seriously. Employees also have the right to seek compensation when they sustain injuries on the job, especially when the injuries are the result of an employer’s negligence.

In the aftermath of a car accident, dealing with insurance companies can be a daunting task. This blog aims to shed light on bad faith insurance practices where some insurers try to unjustly minimize their payouts. Understanding these tactics is key to safeguarding your rights and ensuring you receive the compensation owed to you.

At PARRIS Law Firm, we have seen these tactics firsthand, and we stand ready to support you in this fight. Our proficiency in personal injury law, particularly in California, arms us with the tools to navigate this complex landscape. Our goal is to provide you with valuable insights so that you can recognize and counteract such tactics, helping you secure the justice you deserve.

Understanding Bad Faith Insurance Claims

A bad faith insurance claim is when an insurance company fails to fulfill the obligations outlined in your policy or doesn’t abide by the laws governing insurance practices. It’s not a mere misstep or an honest mistake, but a deliberate and dishonest approach to deny, delay, or diminish your rightful claim.

In California, insurance companies have a legal duty of good faith and fair dealing, which means they must act in a reasonable and fair manner towards their policyholders and anyone injured by their policyholders. They must promptly investigate, process, and pay legitimate claims. When they deviate from this path, it’s called acting in bad faith.

When insurance companies fail to adhere to these obligations, they’re not just bending the rules—they’re breaking them. And when they break them, they are acting in bad faith. Recognizing these tactics is your first line of defense in ensuring that your rights are protected and that you receive the compensation you deserve after a car accident.

Common Bad Faith Tactics in Car Accident Claims

Navigating the insurance claim process following a car accident can be challenging, especially when you’re contending with bad faith tactics. Let’s discuss six common ploys and understand how they can negatively affect your claim.

1. Unnecessary Delays: Time is of the essence in a car accident claim. However, some insurance companies may intentionally drag out the claim process. They might take an unreasonably long time to respond to your claim or to investigate the accident. This delay not only prolongs your financial uncertainty but also adds to your stress during recovery. It’s a bad faith tactic because it violates the insurer’s obligation to promptly process claims.
2. Denying a Claim without Reason: If an insurer denies your claim without providing a clear and specific reason, it’s a red flag for bad faith. A denial can leave you struggling with medical bills and repair costs, creating financial hardship. Insurance companies are legally obliged to reasonably explain denying a claim, and they must provide this explanation in writing.
3. Misrepresenting Policy Language or Laws: Some insurers may distort the terms of your policy or misinterpret laws to avoid paying your claim. This misinformation can lead to unjust claim denials or reduced payouts. It’s a bad faith tactic as it breaches the insurer’s duty to act honestly and fairly.
4. Inadequate Investigation: A thorough and timely investigation is crucial to determine the validity of a claim. However, an insurer acting in bad faith might conduct a cursory or biased investigation to undervalue or deny your claim. They may also delay investigating so long that evidence goes missing. This tactic deprives you of fair compensation and contravenes the insurer’s obligation to perform a comprehensive investigation.
5. Unreasonably Low Settlement Offers: If an insurer offers a settlement that doesn’t adequately cover your losses, it’s likely a bad faith tactic. Accepting such an offer can leave you out-of-pocket for medical expenses, lost wages, and other damages. Insurance companies have a duty to provide reasonable compensation for valid claims.
6. Refusing to Defend a Lawsuit: If you’re sued over a car accident, your insurance company has a duty to defend you. Failing to do so can expose you to significant legal costs and potential liability. This refusal is a bad faith practice because it violates the insurer’s contractual obligations.

Each of these tactics can inflict financial strain and emotional distress, hindering your recovery process. They are considered bad faith practices because they violate the standards of fair dealing and good faith that insurers must uphold under California law.

How These Bad Faith Insurance Tactics Affect You

From your wallet to your mental health, to the overall recovery process, these unscrupulous practices can take a toll.

The Financial Hit: Car accidents come with a hefty price tag. Medical bills, vehicle repairs, and lost income due to time off work can swiftly accumulate into a mountain of debt. When an insurance company engages in bad faith tactics, the financial burden can intensify. Delayed payouts, denied claims, or paltry settlement offers can leave you shouldering these costs alone. The result? A financial strain that can destabilize your economic security.

Emotional Stress: Dealing with the aftermath of a car accident is already stressful. Add in a relentless battle with an insurance company, and the emotional toll can skyrocket. Unnecessary delays, convoluted policy misinterpretations, and baseless claim denials can lead to heightened feelings of anxiety, frustration, and helplessness. This added stress can exacerbate physical injuries and the overall healing process.

Impediment to Recovery: Speaking of healing, bad faith tactics can throw significant roadblocks in your recovery journey. Insufficient funds may delay necessary medical treatments or force you to opt for less effective but cheaper alternatives. This not only prolongs your recovery but also impacts your overall well-being and quality of life.

So why do insurance companies resort to these tactics? The answer is simple yet harsh—it’s about their bottom line. By minimizing payouts, they maximize profits. But don’t let this deter you. The insurance landscape may seem intimidating, but knowledge is your best ally.

How to Identify Bad Faith Insurance Tactics

Recognizing bad faith insurance tactics is crucial. Here are some telltale signs to watch out for:

1. Unjustified Delays: If responses or claim processing are dragging on without reasonable cause, it’s time to raise an eyebrow.
2. Claim Denials Lacking Explanation: A denial without justification is a red flag. You’re entitled to a clear reason for any denied claim.
3. Policy or Law Misinterpretation: If your policy language seems twisted or laws appear misrepresented, be vigilant. It could be an attempt to evade claim payment.
4. Incomplete Investigation: A hurried or biased investigation can lead to unjust claim denials or undervalued settlements.
5. Lowball Settlement Offers: If the settlement proposed doesn’t align with your losses, it’s an issue. They’re trying to get off the hook for cheap.
6. Refusal to Defend a Lawsuit: If you’re facing a lawsuit and your insurer won’t stand up for you, it’s a serious breach of duty.
7. Ignoring Your Communications: If your calls, emails, or letters go unanswered, it’s not just rude, it’s possibly a sign of bad faith.
8. Changing Your Claim Adjuster Repeatedly: If your adjuster keeps changing, causing delays and confusion, it could be a tactic to frustrate you into settling.
9. Requesting Unnecessary Documentation: Asking for irrelevant paperwork could be a stalling strategy to delay your claim.
10. Misquoting Your Policy: If the insurer is quoting policy terms that seem incorrect or misleading, they may try to underpay your claim.
11. Making Threatening Statements: Any attempts to intimidate you into accepting lower settlements is not just unethical, it’s likely bad faith.
12. Settlement Offers Without Reviewing All Medical Records: If an offer comes before all medical records have been reviewed, they may be rushing to close the claim.

What to Do If You’re a Victim of Bad Faith Insurance Tactics

If you find yourself caught in the crossfire of bad faith insurance tactics, don’t despair. Here’s a roadmap to navigate through this maze.

Step 1: Document Everything: Like footprints in the sand, every interaction with the insurance company leaves a trail. Keep track of all correspondences, record dates, times, and key points of discussions. This paper trail can be vital evidence if you need to prove bad faith.

Step 2: Understand Your Policy: Knowledge is power. Familiarize yourself with your policy terms, conditions, and exclusions. This understanding equips you to challenge any misinterpretation the insurer may throw your way.

Step 3: Consult a Personal Injury Lawyer: An experienced personal injury lawyer can be your compass in this tumultuous journey. They can review your case, advice on the best course of action, and represent your interests.

At PARRIS Law Firm, we’ve battled bad faith insurance tactics head-on and emerged victorious, securing millions in compensation for our clients. We understand the ins and outs of insurance law, and we know how to counteract these unscrupulous tactics effectively.

Taking Decisive Action

If you’re caught in the whirlwind of bad faith insurance tactics, take a deep breath. You’re not alone in this fight. PARRIS Law Firm is ready and willing to step into the ring for you. Our team of dedicated personal injury lawyers has the knowledge, experience, and tenacity to tackle these underhanded tactics head-on.

Car accidents can be traumatic, and dealing with insurance companies afterwards often adds to the stress. If you’re a victim of a car accident in California, it’s crucial to understand the tactics insurance companies use to minimize their payouts. This blog aims to shed light on what insurance companies won’t tell you after an accident, empowering you to navigate this challenging situation and assert your rights for fair compensation. Knowledge is power, especially when dealing with insurance companies post-accident.

The Initial Response from Insurance Companies

After a car accident, the initial response from both your insurance company and that of the at-fault driver may seem supportive and reassuring. They might reach out to you promptly, seemingly expressing concern for your well-being and promising to help you through the process. But it’s crucial to remember: insurance companies are businesses first, and their primary goal is to save money.

Insurance companies employ trained adjusters whose job is to evaluate the situation and minimize the payout. While they may appear friendly and compassionate, their underlying aim is to protect the company’s bottom line. This means they’ll listen to your account of the accident, ask for details, and even sympathize with your situation. But all the while, they’re trying to gather information to potentially use against you in reducing your claim.

The at-fault driver’s insurance company may even offer an immediate settlement. While this might seem like a quick resolution to your troubles, it’s often a tactic to close the case before you realize the full extent of your injuries or damages. Accepting this initial offer could leave you with expenses that far exceed the settlement amount and, since you’ve signed a release, you won’t be able to go back to the insurance company requesting more funds.

It’s also important to note that insurance companies may record conversations and use your words against you later. So, while it’s necessary to cooperate, be cautious about what you say and avoid providing more information than required.

Breakdown of What Insurance Companies Won’t Tell You

Insurance companies are skilled at managing claims in a way that protects their interests. Here’s what they won’t tell you after a car accident:

1. Their primary goal is to save money: As much as they offer support, insurance companies’ main objective is to minimize their payouts. They’re not on your side; they’re on the side of their financial interests.
2. The initial settlement offer is often low: Once again, the first settlement offer is usually far below what you’re entitled to. It’s a tactic to close the claim quickly and cheaply.
3. You don’t have to accept the first offer: Despite what they might imply, you’re under no obligation to accept the first settlement offer. You have the right to negotiate or reject it outright.
4. Your statements can be used against you: Any information you provide, even casually, can be used to devalue your claim. Be cautious about what you share.
5. You have the right to legal representation: Insurance companies often discourage victims from hiring attorneys because they know it could lead to higher settlements. But remember, you have the right to legal representation.

How to Deal with Insurance Companies

Navigating conversations with insurance companies after a car accident can be daunting. Here’s how you can assert your rights and seek fair compensation:

1. Be cautious with your words: Anything you say can be used against you. Provide only the necessary information about the accident and avoid making any definitive statements about injuries or fault.
2. Don’t rush to settle: Insurance companies often try to close claims quickly with a low-ball offer. Take your time to understand the full extent of your injuries and damages before considering any settlement offers.
3. Stand up for your rights: You have the right to reject initial settlement offers and negotiate for a fair amount. Don’t let insurance companies pressure you into accepting less than you deserve.
4. Keep meticulous records: Document everything related to the accident and your injuries. This includes medical bills, repair costs, and any communication with the insurance companies. These records will be crucial in supporting your claim.
5. Consult a lawyer: Legal representation can make a significant difference in your claim. Lawyers understand the tactics insurance companies use and can help you navigate through the process.

The Importance of Legal Representation

Attorneys help to provide comprehensive legal support to clients involved in personal injury cases. They conduct thorough investigations of the accident, gathering pertinent evidence, such as medical reports, accident scenes, and witness testimonies to substantiate the claim.

Lawyers also serve as your advocate, communicating on your behalf with involved parties such as insurance adjusters, opposing counsel, and, when necessary, the court. They help interpret complex legal jargon and procedural rules, ensuring that your rights are not compromised.

Lawyers can enlist the aid of expert witnesses to strengthen your case, which can be particularly valuable when assessing long-term impacts of injuries or calculating nuanced aspects of damages. Lawyers work diligently to build a persuasive and robust case, allowing their clients to focus on recovery while they strive to secure the maximum possible compensation.

When you partner with a skilled California personal injury attorney, they guide you through the complex legal process, help you avoid common pitfalls, accurately evaluate your claim, and negotiate assertively on your behalf.

Let’s explore this through three fictional examples:

1. John’s Story: John, a California resident, was involved in a severe car accident that resulted in significant medical bills and loss of wages. The at-fault driver’s insurance company quickly offered a settlement that, at first glance, seemed substantial. On the brink of accepting it, John consulted a personal injury lawyer. The lawyer, experienced in dealing with such cases, immediately identified that the offer didn’t fully account for John’s long-term medical needs, potential future loss of earnings, and emotional distress. After rigorous negotiations, the lawyer secured a settlement that was triple the initial offer. Without legal representation, John could have accepted the initial low-ball offer, leaving him struggling with future medical expenses and financial instability.
2. Jane’s Dilemma: Jane was involved in a minor car accident that resulted in some property damage and minor injuries. Initially, she thought her case was too small to involve a lawyer. However, after consulting an attorney, she discovered she was entitled to compensation not just for her medical bills and car repairs, but also for the diminished value of her car, her emotional distress, and even her lost time from work. Without a lawyer, Jane would likely have settled for covering just her immediate medical bills and car repair costs, unaware of the other damages she could claim.
3. Robert’s Case: Robert suffered debilitating injuries in a car crash and could not work or even communicate effectively with the insurance company. His lawyer was able to step in and handle all communications, ensuring that Robert’s condition was not exploited and his claim was not undervalued. The lawyer also took care of gathering all necessary evidence, consulting medical experts, and building a robust case that eventually led to a sizable settlement that covered Robert’s current and future healthcare needs, lost income, and pain and suffering. Without a lawyer, Robert might have been overwhelmed by the complex claim process and accepted an inadequate settlement, jeopardizing his future well-being.

These stories highlight the significant benefits of hiring a personal injury lawyer after a car accident. Legal representation not only alleviates the burden of dealing with insurance companies but also helps give you the chance to receive the full compensation you’re entitled to. Your journey towards recovery doesn’t have to be faced alone—a knowledgeable attorney can guide you every step of the way.

Take Control of Your Future: Seek Legal Help Now

In the aftermath of a car accident, you may feel overwhelmed and unsure about your next steps. Remember, you’re not alone. The road to recovery can be challenging, but with the right legal help, you can navigate it with confidence.

If you’ve been injured in a car accident in California, don’t let insurance companies dictate your future. Stand up for your rights. You deserve fair compensation for your injuries and losses, and a skilled personal injury attorney can diligently work toward achieving this goal.

At PARRIS Law Firm, we understand the physical, emotional, and financial toll a car accident can take on your life. Our team is committed to advocating for your rights and fighting for the compensation you deserve. Don’t let the complexities of insurance claims and legal jargon deter you. Allow us to shoulder that burden so you can focus on what truly matters—your recovery.