Product Liability clients being sued for damages are usually amazed at how many parties are named in the lawsuit. They’re also surprised by how many of the named parties have little or no connection to the product.
Keep reading below the infographic for three reasons that should offer some insight into this practice.
Simply put, naming as many defendants as possible enables the plaintiff’s attorney to increase the potential financial awards.
Say the cost of complying with discovery is $10,000. By settling for $7,000, the insurance carrier ultimately saves $3,000. Therefore, it’s economics that drives an insurance carrier’s decision to settle rather than defend a frivolous Product Liability lawsuit.
What if you’re adamant about defending what you see as a frivolous lawsuit? Be prepared for your insurance carrier to agree to pay you the settlement amount. That way, you’ll be allowed to hire your own attorney to defend the claim.
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