The term “Stowers demand” originates from a landmark Texas Supreme Court case, G.A. Stowers Furniture Co. v. American Indemnity Co. (1929), which established as the law in Texas that insurance companies must settle for the policy limits, if offered by a biker injured in a motorcycle accident. If the insurance company doesn’t pay the biker the policy limits for his injury, the insurance company is on the hook for the whole judgment at trial for the motorcycle accident, regardless of the policy limits.
Let’s say Mr. Jones has $323,293 in medicals and climbing related to his motorcycle accident injury. Motorcycle Man has done damn near everything but call up the dead next of kin out of the grave. But it’s just a $100,000 GL (General Liability) policy. That’s all that is available. No assets worth waiting years, maybe, to collect. The only thing protecting our biker client is just that $100,000 policy. Mr. Jones’ $400,000+ in medical expenses related to his motorcycle accident injury (and counting after the most recent surgery) far exceed the policy limits of $100,000.
All parties on our side agree to settle including that greedy sister nobody has heard from in years but showed up unannounced. For the sake of understanding Stowers let’s imagine that scenario. On our team, we all decide to demand the policy limits, i.e., $100,000. Everyone is in agreement on our side. Still, the insurance company just doesn’t want to settle for the policy limit. For whatever reason, likely they think the motorcycle accident is the biker’s fault. The insurance company just won’t settle for the policy limit, i.e., $100,000.
Well. We take them to trial and get $5,250,000!!! Then the insurance company owes us the whole balance. Doesn’t matter that the insurance company policy limit is just $100,000. They owe our biker client, Mr. Jones, the whole $5 million+ for his motorcycle accident injury.
But a lot of our cases, like I mentioned in the BLAWG about Hospital Liens, are “upside down.” Same thing with my BLAWG article about UIM insurance. “Upside down” means the medical expenses exceed the insurance policy limits.
Bikers are usually victims. Motorcycle accidents suck! Brutal accidents with lots of medical treatment for injuries, sometimes to parts of your body you didn’t even know you had. Bikes are hard to see. That’s a fact the insurance people try so hard not to accept. Their drivers are usually at fault. But still, the damages in medical expenses (before you even get to pain and suffering, which are freakyreal), are often so much more than the insurance policy limit.
So we return to STOWERS.
Most motorcycle accident injury lawyers won’t mention Stowers and if they mention it at all as the average motorcycle injury lawyer will be asking you to consider settling for the policy limit, saying that’s all there is. If you can even get ahold of someone other than the other motorcycle injury lawyer’s receptionist.
Call Johnny Day. I promise. (832) 444-6085. I will be on it!
Here is something more than a last minute mediation push in the conference room from your typical motorcycle injury lawyer, just saying sign it. Here is more about Stowers.
The best motorcycle accident injury lawyer in Texas, Motorcycle Man, has an opinion about this difficult subject. Being almost 100 years old Stowers is a legend among lawyers who represent people injured in motorcycle accidents. Stowers is one of our last fortresses, to be honest.
The relentless assault of Tort Reform hidden by false piety to our values of discipline and farm ethics all the while growing big business bigger and bigger on the back of working people has overwhelmed an entire generation of motorcycle accident lawyers at the state house and at the local bar (as in lawyer, not icehouse!). Like your old crippled Union friend who goes to an empty union hall. That’s why bikers fight to stay together. To be honest bikers are part of the American backbone! You Know I’m Right!
Listen to Hank William’s “Country Boy Can Survive” next time you’re tired of this shit.
Stowers was back when the Supreme Court of Texas was more concerned with individuals than businesses. Hah! What a concept! Real people?!? Do you know there is only one black person on the 15-person board of Criminal Appeals?
It’s like that if you want relief for a motorcycle injury. The cards are stacked my friend. The cards are stacked. You need Motorcycle Man. Ever gotten the Ace of Hearts on a blackjack table?
The only reason Stowers persists is that insurance companies can’t quite figure out a system where they pay less money. You know? I promise you the insurance companies hate Stowers they just haven’t quite figured out yet how to get rid of this last fortress that protects biker’s injured in motorcycle accidents.
All that said, here is what you need to know about Stowers demands:
- Policy Limit Demand in Writing: If a biker who has suffered a motorcycle accident injury emails a settlement demand for the policy limits (the maximum amount the insurance company has listed on the Dec Pages, not including UIM), the other driver’s insurance company has a duty to accept the biker’s settlement OR pay the other driver’s insurance company has to pay the excess judgment after trial (i.e., after a jury verdict, which is 3-5 years away). Yes, you can do this on your own. But call Motorcycle Man. (832) 444-6085. The other driver’s insurance company won’t respect an individual writing a Stowers demand.