I was asked, “How often do people actually win their motorcycle accident case against insurance companies” and “How often do people get good settlement money from insurance companies, is it even worth it?”

Many lawyers don’t want to take motorcycle accident cases because juries are often not sympathetic to motorcyclists. We understand how to change that attitude. Fortunately, we have not lost a motorcycle accident case yet.

It’s usually easy to prove the driver of the other vehicle was responsible for causing your motorcycle accident, even if the motorcyclist was drunk!

According to the U.S. Department of Justice, Bureau of Justice Statistics study during a 12-month period ending June 30, 1992, 33% of cases decided by juries were automobile accident suits (the study does not mention motorcycle accidents).

In half of all jury cases, the jury found in favor of the plaintiff during the 12-month period. The median total award for a plaintiff was $52,000 (this figure is high because it includes non-tort or accident cases). Punitive damages were awarded in 6% of the jury cases where the plaintiff won. The median punitive award was $50,000. The average time from filing the complaint (start of the lawsuit) to the jury verdict was 2.5 years.

From 1992 to 2005, the total number of civil tort (accident) trials declined by 40% in the nation’s 75 most populous counties, which would include all the counties in the New York Metropolitan area.

In 2005, a jury found in favor of the plaintiff in 54% of state court jury trials. The plaintiff was significantly more likely to win in a bench trial (a trial decided by a judge instead of a jury) compared to a jury trial, yet 90% of tort cases were jury trials.

The median final award for all tort plaintiff winners was $24,000. In 6.3% of jury trials, the plaintiff winner was awarded $1 million or more in compensatory and punitive damages.

The statistics involving New York motorcycle accident cases would be significantly different as compared to car accidents. Motorcycle accidents, particularly those involving Harleys and cruising motorcycles, usually involve very good liability against the car which struck the motorcycle. Bikers on cruising motorcycles are usually careful drivers who are not speeding and are careful to avoid accidents.

Many police accident reports show that the driver of the car which struck the motorcycle admitted liability in motorcycle accidents, possibly because of the shock of seeing the significant injuries caused. This will result in a significantly higher number of winning cases for motorcycle accidents as compared to car accidents.

Motorcycle accidents typically involve extremely serious injuries, rarely seen in car accidents. Injuries caused by motorcycle accidents are frequently worth hundreds of thousands of dollars to millions. This will result in a significantly higher average award for motorcycle accident victims.

This article answers two questions about an accident when driving without a license and applies to all vehicles, including cars, trucks, and motorcycles.

Q. Am I at fault for causing an accident if I was driving without a motorcycle license?

A. No. The lack of a license didn’t cause the accident, even if you got a ticket for driving without a license.

Q. If I didn’t have a license, can I still have a personal injury case and get money for my injury?

A. Yes. Because not having a license has nothing to do with who is at fault for causing the accident.

Motorcyclist Thought He Didn’t Have a Case Because He Didn’t Have a License

I received a call from a motorcyclist who was hurt when a car hit his motorcycle, and he was calling to find out if he could make a personal injury claim or lawsuit.

He didn’t think of calling a motorcycle lawyer at the time of the accident because he was riding or driving without a motorcycle operator’s license. Because he was driving the motorcycle illegally and was even issued a ticket for driving without a license, he thought that prevented him from suing for his injury, and that’s why he didn’t call a lawyer earlier. But someone told him to call a lawyer and find out.

I asked him if he had a valid motorcycle license at the time of the accident, would that have prevented the accident?

His motorcycle was stopped at a red light when it was hit in the rear by the car. His injuries were 100% caused by the other driver’s negligence. Not having a valid license had nothing to do with who caused the accident, and the motorcyclist is therefore entitled to be compensated for his injuries.

Reasons Why Would a Driver Not Have a License

Five reasons why someone could be driving a motorcycle or car without a motorcycle license or driver’s license:

• The driver had a valid that was left at home
• The driver’s license was suspended
• The driver’s license was revoked
• The driver failed to renew the license, or
• The driver never obtained a license

But the lack of a license didn’t cause the accident. Even if the driver or motorcycle operator never obtained a license, it has nothing to do with fault for causing the accident.

The Arguments Why a Driver Without a License Is at Fault for Causing the Accident

There are only two reasons to believe someone is at fault for causing an accident when driving without a license, and those reasons are flawed.

First, some people think that if the motorcycle operator or car driver obeyed the law by not driving without a license, he/she would not be in that place at that time, and the accident would never have happened. I have even heard this argument from other personal injury lawyers!

But that argument is ridiculous. The lack of a driver’s license is not what caused the accident (see the New York State case law below).

The second is that a license means the driver or motorcycle rider has the experience necessary to operate safely. But that makes two incorrect assumptions.

A license doesn’t even prove whether someone is experienced or not. Someone could have been riding motorcycles or cars for 20 years since age 8 and be highly experienced but, for some reason, never got a license.

Another person can get a license after some very basic training and have almost no experience.

The only question to answer is which driver was negligent. The negligent driver is at fault for causing the accident.

When Can Not Having a License Affect Your Case?

If a motorcyclist did not have a motorcycle license, it would only become a problem if he or she lied about having a license.

If the motorcyclist testifies at a deposition or in court that he or she had a motorcycle license when it was only a learner’s permit, or there was no license at all, evidence from the DMV can be submitted for the purpose of showing that the motorcyclist did not have a license and lied.

The jury could then consider whether the motorcyclist is a liar and whether the other testimony should be believed.

If You Didn’t Have a Driver’s License or Motorcycle License You Can Have a Personal Injury Case

If, at the time of the accident, the injured operator of a motorcycle never had a license or previously had a motorcycle license that was expired, suspended, or revoked, the motorcyclist IS entitled to compensation for injuries.

If you did not have a motorcycle license, you can sue someone else for causing your injuries. If you were driving, had an accident, and did not have a driver’s license, it does not mean that you caused the accident.

Likewise, if the person who caused your injuries did not have a driver’s license, the lack of a driver’s license does not mean that person was negligent or is responsible for your injuries.

Examples Showing Why Not Having a Driver’s License Has Nothing to Do With Who Caused the Accident

Example 1

You are driving a motorcycle without a license, and while stopped at a red light, you are hit in the rear by a car. If you had a driver’s license, would the car have stopped in time, and the accident have been avoided? Of course not. The accident wasn’t caused because you didn’t have a motorcycle license.

Example 2

You are riding a motorcycle without a license going through an intersection when you have a green light. A car runs through the red light hitting your motorcycle and injuring you. If you had a driver’s license, would the accident have been avoided and you not have been hit? Of course not. The accident wasn’t caused because you didn’t have a motorcycle license.

A license cannot cause or prevent an accident.

What the New York State Courts Say About Who’s at Fault When Driving Without a License

In Firmes v. Chase Manhattan Automotive Finance Corp., a New York (second department) decision, the court held that the motorcyclist’s operating a motorcycle without a license did not bar recovery and that evidence regarding the motorcyclist’s lack of license, registration, and insurance could be excluded. That means the failure to have a license could be used against that motorcyclist or you.

In another recent New York Appellate Division (fourth department) decision in Huff v Rodriguez, also known as Huff III, the court stated: “It is well settled that the absence or possession of a driver’s license relates only to the authority for operating a vehicle, and not to its manner of operation.” “Thus, the absence or possession of a driver’s license is not relevant to the issue of negligence.” (emphasis added)

However, the Appellate Division stated that the fact that a person does not possess a driver’s license may be relevant with respect to the issue of that person’s credibility if the person lies about having a license. In other words, whether that person can be believed with respect to other aspects of his or her testimony if he or she lied about having a license.

In Huff III, the plaintiff’s lawyer asked the defendant whether she had a New York State driver’s license on the date of the accident. When she replied that she did, the plaintiff’s lawyer confronted her with an abstract from the Department of Motor Vehicles, which indicated that on the date of the accident, she held a learner’s permit, not a license.

The jury was able to review evidence that she did not have a driver’s license at the time of the accident and could use the evidence to decide whether this was a significant lie causing them to disbelieve the rest of her testimony; whether it was an unimportant lie; or just an error.

The Appellate Division stated that the lower trial court properly allowed the DMV abstract to be admitted into evidence because the court instructed the jury that evidence concerning the defendant’s lack of a driver’s license had nothing to do with the accident or negligence. Among other things, the trial court said “. . . In other words, ladies and gentlemen of the jury, you can be unlicensed and the operation of your vehicle has nothing to do with negligence.”

Related Articles

Can you get money if you don’t have a motorcycle license AND you caused the accident?

Can I Sue for My Injuries If I Was Drunk?

If you have been hurt in a motorcycle accident in which you were operating the motorcycle without a valid license, please call the New York motorcycle accident lawyers

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What Happens After You Settle Your Case?

Motorcycle accident cases can often be settled more quickly than most car accident cases and often for the entire insurance policy. But what happens after you settle your personal injury case, and what’s the procedure?

Read this article to see how long it takes for a personal injury case to settle.

We’ll use this motorcycle accident case as an example of what happens after your settlement.

Your motorcycle was struck by a car, and you have a scar on your forearm. Your lawyer calls advising that he negotiated with the insurance company and obtained a final settlement offer of $150,000.

You decide to accept the settlement offer, so now what?

You’ll Have to Sign a Personal Injury Release

The insurance company will require you to sign a release. The release permanently releases the owner and driver of the car, which means you can never (unless fraud was committed) seek any more money for your injuries from the owner and driver of the car.

The insurance company will send their release to your personal injury lawyer. Most lawyers use the insurance company release. We usually do not use the insurance company release, which we find to be oppressive.

We usually use our own release, which does not make you agree to oppressive terms. Our release also includes language so that the personal injury settlement is not subject to income tax. Read this article at the HURT911® research website for information about income tax on personal injury settlements.

What Happens After You Sign a Personal Injury Release?

After you sign the release, your lawyer will send the release to the insurance company and wait for the insurance company to send the settlement check.

We send the release to the insurance company by fax or email. We usually receive the settlement check within 4-10 days after sending it.

On rare occasions, an insurance company will delay sending the settlement check. We have various options to force them to send the settlement check.

The insurance company will only send a settlement check to your attorney. The settlement check will be a two-party check made payable to both you and your attorney.

How Long Can an Insurance Company Take to Send a Settlement Check?

Insurance companies usually send the settlement check within a day or two after receiving your signed release.

On rare occasions, an insurance company will delay sending the settlement check. We have various options to force them to send the settlement check if your case was settled without having to file a lawsuit.

If your case was settled after a lawsuit was started, New York State law C.P.L.R. § 5003-a requires that the insurance company send the settlement check within 21 days (including weekends) of the date of making a “tender,” the date the release and stipulation of discontinuance was personally delivered to the insurance company or mailed by certified mail.

The penalty for failure to make a timely payment is 9% interest plus court costs.

C.P.L.R. § 5003-a governs actions (cases in suit), so if a lawsuit has not been filed by the time a case is settled and the insurance company fails to make timely payment, it may be possible to start an action by the purchase of an index number and filing a motion.

Lawsuits Against New York City and Other Governments

The 21-day period applies to non-governmental defendants. If the defendant is a municipality such as New York City or any public corporation, it is allowed 90 days to pay the settlement. New York City will check for liens it may have against the settlement, and that can take a few months to complete.

Will I know When My Lawyer Receives the Settlement Check?

The insurance company will send you a letter telling you that the settlement check was sent to your lawyer.

11 NYCRR 1.1(1) (COMPILATION OF CODES, RULES AND REGULATIONS OF THE STATE OF NEW YORK) requires that if the settlement check is more than $5,000, the insurance company must send you a letter on the same day they send your settlement check, advising that they sent the settlement check to your attorney.

If you receive a letter from the insurance company advising that they sent the settlement check to your attorney, then your attorney will have received your settlement check within a day of you receiving the letter.

What Happens After the Settlement Check is Received?

After your attorney receives your settlement check, your attorney must deposit the settlement check into an escrow account called an I.O.L.A. account (Interest On Lawyer Accounts).

Since the settlement check is a two-party check payable to you and your attorney, your attorney cannot endorse your name and deposit the check unless you either endorse the back of the check or sign a power of attorney allowing your lawyer to endorse the settlement check for you. You may have signed a power of attorney at the same time you signed the release.

Your lawyer will then deposit the settlement check into the attorney’s escrow account. Because settlement checks are out-of-state checks for large amounts, it can take up to 10 days for the bank to clear your settlement check.

After your check clears, your lawyer will deduct legal fees and case expenses. In New York, the legal fee for a personal injury settlement is 1/3 of the gross settlement. Case expenses are then reimbursed to the attorney.

If there are any liens, such as Medicaid, doctor liens, health insurance liens, or pre-settlement cash advances, those will be negotiated for a reduction and paid. The lawyer will then issue a check to you for your net settlement.

To find out how much you will receive from your personal injury settlement after deducting legal fees, expenses, liens, and cash advances, use the free HURT911® Personal Injury Settlement Calculator.

We are usually able to issue the settlement check to our client in 5-7 business days after it is deposited in our I.O.L.A. escrow account.

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If injured in a New York motorcycle accident while working, can you have both a Worker’s Compensation claim and a personal injury claim or lawsuit?

Some people think that if you have a Worker’s Compensation claim, you cannot have a personal injury claim. The Worker’s Compensation Law, enacted by the New York State Legislature in 1914, took away the right of an employee to sue an employer in most instances. However, you may be able to sue a third party whose negligence caused or contributed to your injury in an accident while at work.

It’s not very common to have a Worker’s Compensation claim involving a motorcycle and a personal injury claim from the same accident, but it is possible. It is more common to have a personal injury claim if you were hurt while driving a car or van for work.

Some people may be employed to work on motorcycles or ride motorcycles for work and encounter an injury while working. These injuries may be covered only by Worker’s Compensation or by Worker’s Compensation and a personal injury claim.

For instance, an employed motorcycle mechanic would be covered only by Worker’s Compensation when injured in the shop from an accident that was not caused by someone other than the mechanic or the employer. However, if the mechanic is injured by someone else’s negligence, the mechanic can be covered by Worker’s Compensation and may also have a personal injury lawsuit.

If the mechanic is working on a motorcycle in front of the shop and a customer driving to the motorcycle shop strikes the mechanic, the mechanic may have both a Worker’s Compensation claim and a personal injury claim against the owner and driver of the car.

Likewise, a motorcycle police officer could be injured because the officer parked the motorcycle on hot asphalt, where it sinks into the asphalt and falls onto the police officer. Since no one besides the officer or employer is negligent for the injury, this would only be covered by workers’ compensation. However, if the police officer’s motorcycle was struck by a car that ran a red light, the police officer would have both a Worker’s Compensation claim and a personal injury claim against the owner and driver of the car that ran the red light.

Many of my clients who were injured in a New York motorcycle accident have suffered injuries usually worth approximately $500,000 and sometimes a lot more. With injuries that serious, tax consequences and tax planning methods to avoid the settlement money being taxed by the IRS must be considered.

After 17 tax credits in law school, this is a topic that interests me and on which I can write a few pages. For informational purposes only, I will attempt to provide a simple, general answer here in just a few paragraphs. You should not rely on this information, and you should consult a CPA, accountant, or tax professional regarding your specific circumstances before settling your case or before filing your tax return if you have already signed a release and settled your case.

IRC section 104(a)(2) addresses income exclusions for taxation of personal injury lawsuit settlement payments, which includes New York motorcycle accidents. Money paid for property damage and medical bills is not taxable because it is offset by a loss. Likewise, money paid for “pain and suffering” in the settlement of a personal injury claim is generally not taxable because it is compensation for a loss that is intended to make you whole again.

When is money paid to settle a personal injury claim taxable?

Lost Wages/Lost Income. Money paid for lost income is taxable.

Psychological Injuries. Money paid for psychological injuries may be taxable. The U.S. Court of Appeals for the District of Columbia in Murphy and Leveille, Appellants v. IRS and USA, Appellees, reversed a decision that money paid for psychological injuries is not taxable. The court ruled that the personal injury award Ms. Murphy received was “within the reach of the congressional power to tax under Article I, Section 8 of the Constitution”, even if the award was “not income within the meaning of the Sixteenth Amendment.” The U.S. Supreme Court denied review of the decision on April 21, 2008.

Punitive Damages. Money paid for punitive damages is taxable. IRC section 104(a)(2) was amended in 1996, making punitive damages taxable without regard to their connection to a physical or nonphysical injury or sickness.

Interest Earned after a Personal Injury Settlement. If you receive money for an injury that is not taxable and you deposit the money in a savings account or otherwise invest it outside of certain kinds of trusts such as a Special-Needs Trust or Pooled Trust, the interest earned is taxable. For more information about Special-Needs Trusts or Pooled Trusts, see HelpWithLiens.com.

When money is awarded pursuant to a verdict after trial, the verdict will state how much money is paid for property damage, medical bills, lost wages, pain, and suffering, etc. The amount of your personal injury award, which is subject to taxation by the IRS or state tax authority, will be determined by the jury verdict.

The problem is when money is paid pursuant to a settlement, many lawyers frequently do not state in the release what the money is being paid for. It is possible for the IRS to make a determination by examining various papers in the file, such as the initial claim letter, the legal complaint, papers submitted to the insurance company as proof of damages, and the release which was signed.

This problem can be rectified with the proper wording in the settlement release. The usual “General Release” form is silent on tax issues and thus not helpful. It is, therefore, important to customize the release to address the tax issues. The provisions which result in a favorable tax status are often adverse to the insurance company’s interests. However, I have usually been able to successfully include provisions in my clients’ releases to prevent taxation of settlement proceeds.

If you have been hurt in a New York motorcycle accident, I will be happy to discuss the income tax implications of your settlement payment and the ways in which I can help you to avoid any income tax liability so that you do not have to pay any income taxes on your motorcycle accident settlement.