Automobile Accidents and Criminal Restitution Orders
By Richard K. Besonen |
Automobile accidents often result in both civil and criminal claims being made against an insured. Because most of us rarely deal directly with criminal matters it is tempting to dismiss criminal restitution claims without proper recognition of the potential civil ramifications. After all, isn’t the insurer limited to providing indemnity for civil claims? Not exactly – Minnesota policies commit to pay sums the insured is legally obligated to pay for bodily
injury and property damage.There is no exception for claims made in criminal proceedings.
Restitution claims are a common part of any criminal proceeding.Under Minnesota law a victim of a crime has a statutory right to claim restitution from an “offender” as part of the disposition of any criminal case. Of course the offender must be found guilty of a crime first, but the crime can be as innocuous as inattentive driving or speeding. If the insured is guilty of a driving violation that is connected to an accident the criminal court may order the insured to pay restitution to the victim.
What can be claimed? The victim can claim any out-of-pocket losses including medical and therapy costs, as well as replacement of wages and services, and damage to property. While criminal courts have wide discretion in ordering restitution these claims can be challenged. For example, if the victim has insurance (either nofault or first-party PD coverage) that has paid, or should pay, for the loss then restitution is improper because there is no “out of pocket loss.” The victim/state must also show that the offender was negligent or otherwise at-fault for the accident.
When you receive a restitution order the most important thing to identify is whether there is any basis and/or still an opportunity to challenge the claims. The criminal system moves much faster than civil proceedings and the individual has only 30 days following sentencing to challenge a request for restitution. Deciding whether challenges exist will often be as simple as calling the prosecutor directly. If there is no basis to challenge the restitution claim under most circumstances the insurer will be responsible for paying this obligation on behalf of the insured. Satisfying the order removes those claims from any civil proceeding as the insured receives a credit for sums paid to the victim. As always, should you need assistance with any particular claim Arthur Chapman attorneys are available for consultation.