Insurance companies often attempt to escape paying money to victims of accidents by alleging their own insured failed to properly report a claim. Although insurance companies will try anything to avoid compensating injured people fairly, this is one of the rare areas where Pennsylvania law runs against insurance companies and helps regular folks who have been hurt. The law states, in essence, that when an insurance company isn't properly put on notice, the company must show actual prejudice in order to avoid paying a claim. As long as the insurance company finds out about a lawsuit in enough time to defend it, they must pay.
I'm reminded of that wonderful rule by a brand new decision by the Supreme Court of Texas. In the case of PAJ v. Hanover Insurance Company, the high court accepted the so-called prejudice rule, just like in Pennsylvania, and held that insurance companies are not relieved of their obligation to pay by any small technicality - they must show prejudice, or a harm to their ability to defend the case.
After all those stories of Texas lawyers sleeping through jury trials in death penalty cases, I'm glad to see that there are some kick-ass plaintiffs lawyers still fighting hard for everyday folks.
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