Perla was driving with Mirtha as her passenger when they got into a two-car collision. Both were injured. Perla and the other driver exchanged information.
Perla lied to her insurance company, Allsate, and told them that she did not know the identity of the other driver, and that he had left the scene.
Just before Mirtha was to give Allstate her statement under oath, she received a text from Perla asking her to testify that the other driver had left the scene. Mirtha did the right thing and ignored the text. She truthfully testified that the drivers had exchanged information. She did not mention the text message.
Allstate denied Perla for fraud in lying about not knowing the identity of the other driver. Allstate also denied coverage to her passenger, Mirtha – who had testified truthfully.
Mirtha moved for summary judgment against Allstate. Allstate argued that Mirtha committed fraud by not revealing the text message.
The trial court disagreed and entered judgment for Mirtha, including over $40,000 in attorney fees. Allstate appealed.
The Court of Appeals upheld the trial court’s ruling. The Court ruled that Mirtha’s failure to disclose the text message was not fraud. The Court also ruled that Allstate can not void coverage for all who are covered under an auto policy when only of them commits fraud.
You need not always voluntarily disclose all information, but it is important to be truthful. Telling a lie under oath is illegal, immoral, and just not smart.
If you have any questions about insurance coverage consult with an attorney.
By personal injury attorney Travis Scott Eller.