Smith v. Smith: Suing a Family Member or Close Friend for Personal Injury Damages in Alberta

In the practice of personal injury law, people injured in accidents due to no fault of their own occasionally face the dilemma of whether to sue an at-fault family member or close friend for their damages and losses. For most people, the thought of suing a loved one for money is abhorrent and is not something they want to do.

In this article, we provide some general information to consider if you find yourself in this position. Please note that we are not providing legal advice. As every case depends on specific facts, we strongly recommend that you consult a qualified Alberta personal injury lawyer who can review your situation, usually at no upfront cost, and provide you with practical advice on the best approach to obtain fair compensation while minimizing family stress.

Will Your Personal Injury Lawsuit Affect Your Family Member or Friend Directly?

Picture the following situation: your 19-year-old daughter has offered to take time out of her busy schedule to drive you to a medical appointment using her own vehicle. On the way, she is momentarily distracted and doesn’t see a pedestrian crossing the road up ahead in the crosswalk. At the last second, she manages to swerve and avoid the pedestrian but ends up crashing into a parked car on the side of the road.

Your daughter escapes the accident without injury. Unfortunately, you are seriously injured and will not be able to return to your well-paying job for the foreseeable future. You don’t want to start a legal action against your daughter, especially because she was doing you a favour at the time of the collision, but you also don’t know how you will be able to pay your living expenses and additional medical costs if you are unable to return to work because of your injuries.

In this situation, although it may be uncomfortable, it is generally appropriate to sue your family member. This is because, under the law, they are at fault for the accident and are liable for the damages and losses that you have sustained.

Here, it is important to keep in mind the following:

1. An award of damages in a personal injury action is not like winning the lottery

The compensation paid to an injured party is meant to cover the actual losses that they have suffered. If you do not start a claim or lawsuit against the at-fault driver/owner of the vehicle within the limitation period (generally 2 years), you will lose the opportunity to claim damages for:

• Pain and suffering
• Lost income now and in the future
• Cost of excess medical expenses now and in the future
• Loss of homemaking capacity
• Out-of-pocket expenses related to your injuries

For very serious claims, the amount of compensation paid to the injured party can reach well into the seven-figure range.

2. Generally, personal injury damages are paid by the at-fault driver’s insurance policy, not by the driver personally

Alberta auto insurance policies provide third-party liability coverage that protects the at-fault driver against claims from injured passengers, including family members. The insurance company defends the claim and pays any damages awarded up to the available policy limits.

Although the at-fault driver is required to cooperate in the defence of the claim, this is not usually very onerous, particularly when fault for the accident is clear. Also, the vast majority of motor vehicle accident claims in Alberta (90% +) settle without going to trial, so the chances that either you or your at-fault relative or friend will have to attend a trial are very small.

3. Your actions are not usually the cause of their insurance premiums increasing

Although making a claim against an at-fault driver usually does not result in that driver’s insurance premiums increasing, the premium increases would occur in any event if there was damage. Also, in most cases, any premium increase in the at-fault driver’s insurance would likely be small in comparison to the amount of compensation the injured party is entitled to receive.

Situations Where Friends or Family Can Become Personally Responsible for Paying Damages

As previously noted, every case depends on the facts, and there may be certain facts that make the decision of whether to sue a family member or friend more difficult. These circumstances, such as when your family member has no insurance, should be explored with your lawyer. We are generally able to confirm if legal action will have any impact on your family member during the initial conversation.

Injured in a Car Accident by Your Friend or Family Member? Speak With a Lawyer to Find Out Your Options

When you’re injured in a car accident or other personal injury incident by a friend or family member, the fallout is never easy to deal with. On top of your own injuries and recovery, you must also think about the feelings and well-being of your relative. However, when another party causes you to suffer significant financial, emotional, and physical losses, it is important to protect yourself and your future. This is true even if the at-fault party is someone close to you.

While a large majority of personal injury cases are paid out by insurance companies, and not the at-fault party themself, the pros and cons of a personal injury lawsuit should always be weighed.

At Preszler Injury Lawyers, our Alberta personal injury lawyers can speak with you in a free, no-obligation consultation about your situation. We can consider the facts of your case and let you know what the legal process–and potential outcome–might look like should you choose to take legal action against a friend or family member.

Contact us today online or call us at 1-888-494-7191 to learn more.

We’re here to help.