A Miller v. Shugart agreement, also known as a settlement agreement, is a legal arrangement in which the insured party consents to the plaintiff’s victory in a case, on the condition that the plaintiff collects the compensation from the insured person’s insurance policy rather than directly from the insured person. This agreement, named after a Minnesota court case, is also employed in other jurisdictions.
A Miller v. Shugart agreement is a settlement arrangement where an insured individual accepts a judgement in favor of the plaintiff, under the condition that the plaintiff can only collect the judgement from the insured person’s insurance policy. The plaintiff is prohibited from seeking compensation directly from the insured person. For instance, let’s consider a scenario where a driver causes an accident resulting in injury to another person. The injured party files a lawsuit against the driver for damages. The driver possesses car insurance, and the insurance company agrees to defend the driver in the lawsuit. However, the insurance policy has a limit of $100,000, while the damages suffered by the injured person amount to $200,000. In such a situation, the driver and the injured person may opt for a Miller v. Shugart agreement. This agreement entails the injured person accepting a judgement of $100,000, but only if the insurance company pays that amount, and the injured person is barred from seeking any additional compensation from the driver personally. Although the Miller v. Shugart agreement is named after a Minnesota court case, it is also utilised in other states. It serves as a valuable tool for resolving lawsuits when the insurance policy limit falls short of covering the entire damages, while the insured person aims to avoid personal liability.
A Miller v. Shugart agreement, also known as a high-low agreement, is a settlement agreement between the plaintiff and defendant in a personal injury lawsuit. It establishes a minimum and maximum amount that the defendant will pay, regardless of the final judgment or verdict.
Once both parties agree to a settlement range, the defendant’s insurance company will typically pay the plaintiff the agreed minimum amount if the final judgment or verdict is less than that amount. Conversely, if the judgment or verdict exceeds the agreed maximum amount, the defendant will only be liable for the maximum amount.
Yes, Miller v. Shugart agreements are legally binding as long as both parties voluntarily enter into the agreement with a clear understanding of its terms and consequences.
If one party breaches a Miller v. Shugart agreement, the non-breaching party can seek legal remedies, such as filing a lawsuit for breach of contract, to enforce the terms of the agreement.
Yes, Miller v. Shugart agreements can be used in various personal injury cases, including car accidents, medical malpractice, slip and fall accidents, and product liability claims.
While Miller v. Shugart agreements are generally permissible, some jurisdictions may have specific rules or limitations on their use. It is advisable to consult with a local attorney to ensure compliance with applicable laws.
No, once a Miller v. Shugart agreement is reached and the settlement amount is paid, the plaintiff typically waives their right to pursue further legal action against the defendant for the same incident.
Modifying a Miller v. Shugart agreement after it is signed requires the mutual consent of both parties. Any modifications should be documented in writing and signed by both parties to ensure enforceability.
Tax implications may arise from Miller v. Shugart agreements, and it is recommended to consult with a tax professional to understand the potential tax consequences based on the specific circumstances of the settlement.
While Miller v. Shugart agreements are primarily used in personal injury cases, they may also be applicable in other types of legal disputes where parties wish to establish a predetermined range of settlement amounts to limit their potential liability. However, it is essential to consult with an attorney to determine the suitability and enforceability of such agreements in specific contexts.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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