Safe Auto Insurance Co. and its policyholder, Jaime Valdez, filed a lawsuit against the law firm Lewis Brisbois Bisgaard and Smith LLP for failing to act on a $25,000 settlement offer.
Their claim asserts that the law firm ignored instructions to accept the offer and seek court approval, resulting in prolonged litigation and a $5 mn judgment.
The underlying accident occurred in April 2021 when Valdez, covered by a Safe Auto policy, struck a minor named Owen LaRue, causing severe injuries.
Safe Auto determined that Valdez was 70% at fault. In July 2021, LaRue offered to settle for the $25,000 bodily injury policy limit.
At the time, LaRue’s medical expenses had reached nearly $2 mn. Safe Auto accepted liability and instructed the law firm to proceed with the settlement.
In August 2021, Safe Auto retained Lewis Brisbois to represent Valdez and directed them to finalize the settlement.
The firm did not accept the offer or seek court approval, as instructed. Instead, it suggested pursuing an interpleader action.
According to the complaint, this strategy would not have removed Valdez’s liability and did not serve his legal interests.
On September 9, 2021, LaRue rescinded the settlement offer and later sued Valdez for negligence. Safe Auto and Valdez then faced a multi-year litigation process, which they argue resulted directly from the law firm’s inaction.
In January 2025, the court awarded LaRue a $5 mn judgment, split equally between the insurer and the policyholder.
The complaint emphasizes that, had the law firm accepted the original $25,000 settlement, Safe Auto would have resolved the entire claim and avoided litigation.
Safe Auto and Valdez are now seeking a jury trial. The exact damages requested are not specified, though the amount sought exceeds $75,000.
