Earlier this month, a Maine court heard a case brought by a woman that arose out of a motorcycle accident in which her husband was found to be at fault. In the case, Wood v. Wood, the court had to decide whether interim payments made by Husband to Wife counted towards the final verdict amount. Ultimately, the court determined that it needed further clarification as to whether the payments were based on Husband’s liability to Wife, or whether the payments were made to Wife based on her own coverage under the very same policy.
The confusion in this case arose because both Husband and Wife were on the same insurance policy. After the accident, but before the trial had concluded, the insurance company had paid roughly $5,000 to Wife. After the trial, Wife received a verdict in the amount of $50,000. The insurance company then sought credit for the $5,000 it paid prior to the court’s ruling.
Wife’s position was that the $5,000 was not a medical liability payment but was a payment made to her as an insured party who was involved in an accident. The insurance company, through Husband, claimed that credit was deserved because Husband was ultimately determined to be at fault, and thus the payment was a liability payment that should be credited towards the total.