A recent trend has come to our attention in the realm of motor vehicle accident settlements. More than one of our clients, upon initial consultation for personal injuries related to a motor vehicle accident, has advised us that they have received and cashed checks from the other person's motor vehicle insurance carrier prior to meeting with us. These checks are generally in the $250.00 to $500.00 range. Importantly, although our clients are being told that the small payments are being provided to them for medical co-pays and deductibles, our close review of the documentation provided with the checks has revealed that the checks are being provided in exchange for a full and final settlement of any and all personal injuries.

The clients that have approached us with these checks were shocked to find out that they may have jeopardized their right to collect full and complete compensatory damages for their pain and suffering, disability and impairment, and loss of enjoyment of life by merely receiving, acknowledging and cashing these small checks when they were specifically told by the insurance companies that the checks were being provided to them for their medical co-pays and their deductibles. In this regard, New Jersey law provides that a tortfeasor will not be responsible for any medical co-pays and/or deductibles in a motor vehicle accident. As such, it is clear to us that these insurance companies were clearly misrepresenting the facts to our clients for purposes of fraudulently entering into a settlement agreement.

Fortunately, after our involvement, a majority of the insurance companies have "backed away" from their position that the case has been settled and will allow our clients' remaining personal injury claims to go forward. More astoundingly, at least one insurance company has refused to back off their position and we are presently looking into filing suit against them and all of the insurance companies that have engaged in this practice as a result of their engaging in fraud, deceit and violation of various New Jersey statutes concerning Fair Settlement Practices.

In light of all of the above, it is especially important that, if you are involved in a motor vehicle accident, you do not sign any paperwork provided to you by the other driver's insurance company, or cash any checks provided to you by them, before speaking to a lawyer qualified in the area of personal injury litigation. While generally checks payable to body shops for property damage and checks payable directly to you for vehicles which have been totaled as a result of the accident are safe to sign and/or deposit, we suggest speaking to an attorney first.