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Understanding the Miller v. Shugart Agreement: A Legal Overview
Definition & Meaning
The Miller v. Shugart agreement is a legal arrangement where an insured party agrees to a judgment in favor of a plaintiff. This agreement stipulates that the plaintiff can only collect the judgment amount from the insured's insurance policy and cannot pursue further recovery from the insured personally. This type of agreement originated from a Minnesota case, but it is recognized and utilized in various jurisdictions across the United States.
Table of content
Legal Use & context
The Miller v. Shugart agreement is commonly used in civil litigation, particularly in cases involving personal injury or property damage claims. It allows defendants to settle claims while protecting their personal assets from further legal action. Legal practitioners often use this agreement to facilitate settlements without exposing their clients to additional liabilities. Users can manage such agreements through legal templates available on platforms like US Legal Forms, which are drafted by experienced attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A driver involved in an accident agrees to a Miller v. Shugart agreement after a lawsuit is filed against them. They consent to a judgment of $100,000, which the plaintiff can only collect from the driver's insurance policy, not from the driver's personal assets.
Example 2: A property owner facing a lawsuit for damages due to a tenant's injury agrees to a similar settlement, ensuring that the plaintiff can only seek compensation from the property owner's liability insurance (hypothetical example).
State-by-state differences
Examples of state differences (not exhaustive):
State
Notes
California
Recognizes Miller v. Shugart agreements, often used in personal injury cases.
Florida
Similar agreements are common, but specific procedural rules may apply.
New York
Allows these agreements, but courts may scrutinize the terms closely.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Common misunderstandings
What to do if this term applies to you
If you find yourself in a situation where a Miller v. Shugart agreement may be relevant, consider the following steps:
Consult with a legal professional to understand your rights and obligations.
Explore legal form templates on US Legal Forms to draft an agreement that suits your needs.
Ensure all terms are clearly documented and agreed upon by all parties involved.
For complex situations, seeking professional legal assistance is advisable.
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