DEBLON SETTLEMENTS

Attorney Samuel D. Jackson • February 2, 2024

Is it possible to obtain a settlement from a defendant’s primary insurance company without settling the entire case? Yes, this can be done with what is called a Deblon settlement, named after the case of Deblon v. Beaton, 103 N.J. Super. 345 (Law Div. 1968). In that case, the Appellate Division endorsed a release of liability against the defendants' personal assets and primary insurance carrier, while permitting the case to proceed against the excess carrier. In a Deblon settlement, in exchange for the primary insurance carrier tendering its policy (or a portion of it), the plaintiff gives up the right to collect a defendant's personal assets after a judgment, without giving up the right to continue the case, hold a trial, and collect a judgment from the defendant’s umbrella and excess insurance carriers.


When a plaintiff has a case worth significantly more than the value of the primary insurance policy, it can be advantageous to all involved in the case to enter into a Deblon settlement with the primary insurance carrier if there is enough excess or umbrella coverage to cover the value of the case, or if the defendant has minimal personal assets.


A Deblon settlement is good for plaintiffs, because they receive some money right away, which they can keep even if they lose at trial. It is also good for defendants, because their personal assets are protected from any judgment that exceeds the total insurance coverage amount, without any cost to them. These settlements also benefit the primary carrier, because they are protected from any bad faith claims and they are helping their client (the defendant) avoid personal liability. If the primary carrier knows that they will most likely be tendering the full policy anyway, then they have no reason not to tender it right away in exchange for the release from the plaintiff. The excess and umbrella carriers also have no reason to object to a Deblon settlement, since they are not the ones paying for it, and their client benefits from it.


However, if the plaintiff’s case value exceeds the amount of excess and umbrella coverage, and the defendant has significant assets, then it would not make sense for the plaintiff to limit their recovery to the amount of the policies in place. Likewise, if the primary carrier believes that liability is uncertain or the verdict may be lower than the primary policy limits, then the more sensible strategy for the primary carrier is to take the case to trial. But in cases where liability and damages are strong, but within the limits of the excess and umbrella policies, everyone benefits from a Deblon settlement.

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Fortunately, the law recognizes the tendency of children to view all the world as a playground, and imposes a special duty on owners of such things as swimming pools and trampolines to protect children from the hazard these things can represent. Like many states, New Jersey has adopted this principle of tort law, called the attractive nuisance doctrine. Put simply, an attractive nuisance is any man-made construct present upon land, which may lure children, and which can cause them bodily injury should they play on, in, or around it. The defining characteristic of an attractive nuisance is just that – that it is attractive to children and that the potential fun the attractive nuisance poses, entices a child like a moth to the flame. Swimming pools, playground equipment, and other artificial landscaping features can make your yard a magnet for every kid in the neighborhood, but the very things that might make your yard so enticing to a child may also be the very things that make it so potentially dangerous for them. As a result of this potential for harm, the law places a heightened duty on property owners who have items that will both attract children and present a unique potential for harm. The theory is that children are too young to appreciate the risk of harm these attractive nuisances pose, and therefore, because these items essentially induce a child into a hazardous area of your property, the property owner is expected to take special precautions to mitigate the risk of harm, for example, by putting a fence around a pool. 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A swimming pool is the most common example of an attractive nuisance, and as the summer weather soon comes upon us, pool owners – especially owners of inground pools – should be particularly mindful of the hazard posed by the attractive nuisance. As a pool owner, you could be liable for accidents even if children sneak into your pool without your consent. Whether the pool is in-ground, above ground, or even a kiddie pool, you can reduce your risk by surrounding your pool area with a fence, installing a locking gate (preferably one with an audible alarm), and covering the pool with a safety cover when not in use. New Jersey has passed legislation specifically outlined the heightened obligation of pool owners. Under New Jersey’s swimming pool safety act, called “William’s Law,” any pool must be fenced or walled in with a structure of at least 5 feet high and without any openings wide enough for a 4-inch object to pass through it. 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