MAPS

USA/Canada And The Legal Costs Following An Accident

The legal systems of the US and Canada are often viewed in a negative context; newspaper headlines describe payouts the size of third world budgets and images depict all manner of ridiculous scenarios in which victims hobble all the way to the bank. In truth, these reports are almost always misleading.

 

Litigation in North America is advanced for all intents and purposes, but each state or province is subject to its own laws and not all compensation claims will result in enormous payouts; in fact, some jurisdictions in the US do not effectively facilitate claims over a certain value. In terms of transatlantic disputes, which are not necessarily straightforward to pursue, it is essential that claimants seek professional legal advice from the outset.

 

Road traffic accidents in the US constitute a significant proportion of all transatlantic compensation claims made by British and European citizens. Since the early 1970′s, many states have operated a ‘no fault insurance’ system that was introduced to temper the increasing costs associated with litigation in the country. The no fault insurance system enables road traffic accident victims to claim against their own insurance for lost earnings and medical costs up to the value of $10,000 (dependent on the state and level of insurance) without having to establish fault for the accident. This system is designed to deal with relatively minor physical injuries such as low-grade whiplash. Seriously injured road traffic accident victims often must prove a serious or permanent injury before they can claim from the defendant’s insurance company.

 

Some motorists hold only the minimum level of insurance. This can be as low as $10,000, which is often not enough to cover medical bills. Some states do not even require drivers to hold liability insurance cover, which can present further problems. In any case, it is important to discuss any potential claim at the earliest convenience with our specialist team, as we can advise on complex issues such as medical costs cover, no-fault states and insurance expenses.

 

Other issues that affect compensation claims in the US and Canada include vicarious liability and punitive damages. The latter has received plenty of coverage in the British media over recent years and involves a defendant who is penalised by a jury for a particular practice that is known to be dangerous or harmful. Vicarious liability is best described as the culpability affecting somebody who is responsible for somebody else’s actions; for example, a car rental company may be vicariously liable for the actions of its drivers, which is very different from an English lawyer’s understanding of this legal term.

 

In summary, there are countless circumstances in which it may be necessary to bring a claim for compensation in the US or Canada on behalf of a British national. Such cases can often be pursued without the direct involvement of the claimant. The judicial systems of North America are complex, with laws varying substantially between states and provinces. As such, specialist legal advice is an absolute necessity.

About the Author

This article was written by Daniel Scognamiglio. Daniel is a partner and team leader of the holiday claims team at Blake Lapthorn solicitors.

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