Simple English definitions for legal terms
Read a random definition: senatus decreta
A Miller v. Shugart agreement is a type of settlement where an insured person agrees to let the plaintiff win the case, but only if the plaintiff agrees to collect the money from the insured person's insurance policy and not from the insured person themselves. This type of agreement is named after a court case in Minnesota, but it is used in other places too.
A Miller v. Shugart agreement is a type of settlement in which an insured person agrees to a judgment in favor of the plaintiff, but with the condition that the plaintiff will only collect the judgment from the proceeds of the insured person's insurance policy. The plaintiff cannot seek recovery from the insured person personally.
For example, let's say that a driver causes an accident that injures another person. The injured person sues the driver for damages. The driver has car insurance, and the insurance company agrees to defend the driver in the lawsuit. However, the insurance policy has a limit of $100,000, and the injured person's damages are worth $200,000. The driver and the injured person may enter into a Miller v. Shugart agreement, in which the injured person agrees to a judgment of $100,000, but only if the insurance company pays that amount and the injured person cannot seek any additional recovery from the driver personally.
The Miller v. Shugart agreement is named after a Minnesota court case, but it is used in other states as well. It can be a useful tool for resolving lawsuits when the insurance policy limit is not enough to cover the full amount of damages, but the insured person wants to avoid personal liability.