What Factors Affect the Value of a Personal Injury Settlement?
Several key factors influence the amount of a personal injury settlement, including the severity of the injury, the clarity of liability, and the strength of the evidence connecting the injury to the defendant’s actions.
However, before we can discuss the potential settlement amount, the first step is proving liability. This is the most critical factor. If we cannot prove that the defendant was negligent or at fault, there is no chance of reaching a settlement. In cases where fault is shared (e.g., 50/50 negligence), the settlement value may be reduced proportionally, depending on the degree of liability.
How Do You Assess Liability in a Personal Injury Case?
Assessing liability can be complex, especially in the early stages of a case. While initial evaluations may seem uncertain, filing a lawsuit, taking depositions, and gathering testimony can provide a clearer picture. In some cases, we may also consult with experts—such as medical professionals in medical malpractice cases—to determine the degree of liability. Over time, as more evidence is gathered, our understanding of liability becomes more precise.
What Types of Damages Are Considered in a Personal Injury Settlement?
In personal injury cases, compensatory damages are calculated based on several factors:
Medical Expenses: These are typically straightforward to calculate. We review medical bills and any future treatment plans to determine the full cost of care.
Emotional Distress: These damages are more difficult to quantify, but expert testimony from psychologists or psychiatrists can help establish the long-term emotional impact of the injury.
Lost Wages and Earning Capacity: While it's easy to calculate lost wages for salaried employees, it can be trickier for freelancers, gig workers, or those who are self-employed. However, regardless of the type of employment, if someone is unable to work due to an injury, they are entitled to compensation for lost income and diminished earning capacity.
For instance, I once represented a dancer who could no longer perform due to her injury. This not only affected her financially, but also emotionally, as her work was a crucial part of her well-being. This example highlights the importance of considering both the financial and emotional impacts of an injury, especially for those in specialized fields.
How Are Lost Wages Calculated?
Calculating lost wages can be more complex for individuals in the gig economy or those with unconventional employment arrangements. While it’s straightforward for traditional employees, freelancers and independent contractors may face challenges in proving their income loss. In these cases, we consider factors such as how long they were unable to work and whether they are still able to perform their job duties, albeit with difficulty. This can also involve making disability claims related to the injury.
The Role of Insurance Companies in Personal Injury Settlements
Insurance companies are notorious for minimizing payouts, which is why negotiation is a crucial part of the settlement process. When we receive a case, our first step is to send a demand letter to the defendant and ensure that all evidence—such as photographs, surveillance footage, and medical records—is preserved. Typically, the insurance company responds, and we begin negotiations.
Before starting any negotiations, we make sure our clients are fully treated and have all relevant medical records. Only once we have comprehensive documentation of the injury and its impact do we present our settlement demand to the insurance company, giving them 30 days to respond.
It’s essential that our clients refrain from talking directly to the insurance company, as anything they say could be used against them. Always consult an attorney before speaking to the opposing party or their insurer.
Settling Out of Court vs. Going to Trial
While most cases settle before going to court, there are times when the insurance company’s offers are too low to consider. In those situations, we file a lawsuit. Once the lawsuit is filed, the insurance company often becomes more willing to settle. However, if the case proceeds to trial, there is always some level of uncertainty—while a jury could award a higher settlement, there is also the risk of getting nothing.
Settling out of court offers certainty and avoids the stress of a trial, but trials can lead to much higher settlements, especially if the case involves strong evidence and clear liability. Ultimately, the decision to settle or go to trial depends on the specific circumstances of the case and the client’s goals.
Will I Get More Compensation Going to Trial?
Going to trial is always a gamble. While it could result in a significantly higher payout, it’s impossible to predict. The key difference between settling before trial and going through trial is certainty: settling avoids the unpredictability of a jury decision. However, if the case has strong liability and damages, going to trial may lead to a higher settlement, albeit with more stress and risk.
It’s also worth noting that juries can be influenced by various factors, such as the plaintiff’s likability, the venue of the trial, and the specifics of the case. For example, a jury in a more conservative area may not award as much as one in a more liberal area. The composition of the jury and the location of the trial are important considerations when deciding whether to settle or go to trial.
How to Protect Yourself and Ensure Fair Compensation
To maximize your settlement, it’s vital to document everything. This includes medical records, witness statements, photographs, and any videos that support your claim. Immediate medical treatment is crucial, as delaying treatment can negatively affect your case. Additionally, consulting with an attorney as soon as possible is important—especially because many personal injury cases, such as those involving government entities, have strict deadlines for filing notices of claim. Missing these deadlines can result in a loss of your case.
In some cases, such as claims against municipalities, you must file a notice of claim within 90 days, and lawsuits may need to be filed within a year and a half. Other personal injury claims may have different time limits, ranging from two to three years. To avoid having your case time-barred, speak to an attorney immediately.
Conclusion
Understanding the factors that influence a personal injury settlement is essential for anyone pursuing such a claim. From proving liability to documenting damages, each step plays a crucial role in ensuring a fair settlement. By working with an experienced attorney, you can navigate the complexities of personal injury cases and achieve the best possible outcome.