Friday, March 8, 2013

Loan Your Car and You May Pay The Price! Insurance Follows The Car, Not The Driver.


"If you broke it, you bought it."  This is not exactly true in insurance law.  There is a common misconception that when you loan a car to friends or family the driver's insurance will cover any accidents.  FALSE.

By Indiana statute, the vehicle owner's insurance is primary.  What does that mean?  It means that if you loan your car to someone who gets into an accident, your insurance company is on the hook for all damages and injuries up to your policy limits.  Only once those limits are exhausted does the driver's insurance comes into play.

Why should you care who's insurance pays?  Because it will most likely increase your insurance rates!  Insurance companies typically don't care who was driving the insured vehicle.  Rather, they care about the claims made under you policy and the amount they are required to pay out under those claims.  Thus, the more accurate saying in this context is: "If your friend broke it, your insurance company bought it (up to policy limits)."  Increasing your rates is the most common response.

NOTE: Ownership of a vehicle alone does not make you personally liable for all accidents involving that vehicle.  Rather, liability typically follows the driver.  Driver liability derives from the fact that all drivers have duties to others on the road.  These include duties to keep a proper look-out, to stop at stop signs, and to generally follow the traffic laws.  Breach of those duties can cause the driver to be found negligent or at fault.  A mere owner does not have the same duties as a driver on the road.

However, there can be ownership liability for a driver's accident under certain circumstances.  Owners have a duty not entrust their car to someone that will pose a danger to others on the road.  It's called "negligent entrustment."  You can be personally liable for an accident if you give you keys to someone that is 1) grossly inexperienced, 2) not old enough to drive, 3) impaired (by alcohol or other drugs), or 4) has been involved in multiple prior accidents, traffic citations, and/or does not have a valid license.  There is no bright line rule here.  Rather, this is more a common sense rule that you should not hand over your keys to a bad driver. 

In summary: 1) Be careful who you loan your car to, 2) know that any accident might effect your insurance rates, and 3) never loan your car to a bad driver.



Christopher A. Pearcy
Senior Associate Attorney
Hume Smith Geddes Green & Simmons LLP
54 Monument Circle, 4th Fl.
Indianapolis, IN 46204
Phone: (317) 632-4402
Fax: (317) 632-5595

Thursday, March 7, 2013

Texting and Driving is Unsafe and Illegal... But You Probably Won't Get A Ticket Anytime Soon..

Below is an article I originally wrote and published in the Indiana Lawyer in 2011.  Unfortunately, the predictions made in the article turned out to be true and remain relevant today.  As of June 2012, one year after going into effect, only five (5) tickets had been written in Indianapolis for texting while driving.  There were only 125 tickets issued state-wide during that time.  That's less than 2 per county in a year.  It's unknown how many of those were later dismissed for lack of evidence. 

As predicted in 2011, law enforcement cites difficulties determining whether the driver is using the device for a prohibited activity (text or email), or a permitted activity (such as anything else, including GPS, internet, or even Angry Birds).

Indiana’s Texting Ban: Flawed and Unenforceable (June 2011)
Indiana’s ban on texting while driving went into effect on July 1, 2011.  The ban provides that a person of any age commits a class C infraction if they use a telecommunications device, such as a cell phone, iPad or laptop to type, transmit or read text messages or email while driving.  A single violation is punishable by up to a $500 fine.  The ban was enacted by House Bill 1129 passed this spring and expands on Indiana’s existing texting ban, previously applicable only to drivers 18 and under.  

The texting ban may be a good idea from a public policy standpoint and few disagree that distracted driving can equate to dangerous driving.  But the texting ban is flawed and essentially unenforceable as passed.  

First, the scope of the ban is limited only to texting and email.  It does not cover a broad range of other activities these devices are often used for.  For example, the ban does not prohibit dialing a phone number, surfing the internet or using the thousands of apps now available on most smartphones and similar devices.  These countless other uses serve as plausible defenses for any driver stopped for a suspected violation.  Second, the ban expressly prohibits police from confiscating the device to confirm a violation or for use as evidence.  Even if an officer witnessed a driver typing on their device, proving that the driver was composing a text or email is nearly impossible absent a confession.  

The texting ban was originally part of more comprehensive distracted driver legislation which included a ban on placing or receiving phone calls.  However, the Senate Conference Committee stripped the bill of the provisions banning the making or receiving phone calls leaving only the texting ban in place.  This was an apparent compromise as many in the Indiana General Assembly were concerned that there was not enough support for a more comprehensive ban on cell phone use while driving.   The end result was weaker legislation against distracted driving that gives potential offenders the plausible defense that they were typing on their phone to dial a phone number rather than to transmit a text message or email.  

Indiana is the 32nd state to ban texting while driving for all ages.  Another eight states have texting bans for novice drivers, typically those under 18.  With some kind of texting ban in 80% of states, there is strong nationwide support for this legislation.  Conversely, only eight states have broader bans on handheld cell phone use for drivers of all ages (with exceptions for use with hands free technology).  The slow acceptance of more comprehensive cell phone bans by other states may explain why our General Assembly was reluctant to pass a broader ban in the last session.
Indiana’s texting ban includes an exception that allows drivers to use their device in “conjunction with hands free or voice operated technology.”  This exception is often found in distracted driver legislation from other states, but it only makes sense as an exception to a ban on making or receiving phone calls while driving.  Many devices now include technology that easily allows a user to make or receive a phone call with only their voice.  However, this technology is not as simple to use for composing text messages or emails.  

Voice transcription technology, such as the Dragon Dictation app for the iPhone and Android devices, allows a user to compose a text or email with their voice.  (Update: This obviously now includes Siri as well.)  But any dictation app also requires the user to review their message for accuracy before sending it.  Correcting transcription errors requires the driver to use their hands.  Therefore, the use of such “hands free or voice operated technology” in this context still requires the driver to take their eyes off the road to ensure their message was composed correctly, thus defeating the underlying purpose of the ban and its exception.  

The ban on texting while driving remains a step in the right direction despite its flaws and enforcement problems.   It stands as a statement that our General Assembly recognizes the dangers of distracted driving and believes Indiana should have a public policy against it.  As the popularity of these devices grows, so does the potential for driver distraction and harm.  Hopefully, this ban is just the first step towards more comprehensive and enforceable legislation to protect our citizens from the ever increasing dangers posed by distracted driving.

Chris Pearcy is the Senior Associate at Hume Smith Geddes Green & Simmons LLP in Indianapolis, IN.  His practice focuses on civil litigation, including first and third party insurance litigation, complex insurance coverage, dram shop defense, premises liability, auto liability, construction accidents, contract disputes and business litigation.  He lives in Fishers, IN with his wife, Jennifer, and their two little boys, Noah and Eli.

Wednesday, March 6, 2013

Why I started the "Legal for Life" blog.

Whether you realize it or not, legal issues exist in nearly all aspects of your everyday life.  Whether it be your business, job, marriage, home, vehicle, health, children, pets, finances, insurance, purchases or recreation; legal pitfalls are never too far from the surface. This blog is a guide to help you avoid those pitfalls, and provide ways deal with legal problems if they arise.

I am a lawyer, but better descriptions are "counselor" and "problem solver."  I proactively counsel clients on the law and how to minimize their risk.  However, many new clients come to me after something bad has happened and they have been sued.  Resolving a lawsuit is a special kind of legal problem.  Client's need a litigator that knows how to use all of the legal tools available to bring the case to a quick resolution.  These tools are too numerous to get into here, but the most common ones include discovery, depositions, negotiation, mediation, summary judgment, and trial.  I deal with these issues everyday, but hopefully you will never have to.

We have all heard the saying that "an ounce of prevention is worth a pound of cure." This is more true in law as in any medical context, and it is my motivation for creating this blog. I hope that topics discussed here will help you better recognize and avoid life's legal pitfalls.

I welcome your feedback, including your suggestions and ideas for new topics for this blog.  Please feel free to contact me anytime through the contact information on my webpage: www.humesmith.com.


Christopher A. Pearcy
Senior Associate Attorney
Hume Smith Geddes Green & Simmons LLP
54 Monument Circle, 4th Fl.
Indianapolis, IN 46204
Phone: (317) 632-4402
Fax: (317) 632-5595