When a person suffers a personal injury due to another party’s negligence or wrongful actions, they may seek compensation by filing a personal injury lawsuit. If the case does not go to trial, the outcome will often be a settlement agreement in which the negligent party’s insurance company agrees to pay the injured party a lump sum. Many economic factors influence the final settlement amount.
Lost Income and Earning Capacity in Personal Injury Cases
According to the Odessa personal injury attorneys at the law firm Zehl and Associates, one of the largest components of many personal injury settlements is compensation for past and future lost income. If the injury temporarily disabled the plaintiff from working, the settlement will account for any income they lost during their recovery period. The duration and amount of the lost wages will depend on the specifics of the plaintiff’s occupation and the extent of their injuries. Studies show that plaintiffs who hire an experienced personal injury lawyer typically receive significantly higher settlements, often over $60,000 higher on average, than those who try to negotiate a settlement on their own.
If the injury causes permanent impairment that reduces the plaintiff’s earning capacity, the settlement will also include compensation for future lost earnings. Economic experts often quantify this loss by calculating projected earnings over the plaintiff’s expected remaining working years. The plaintiff’s education level and occupational prognosis are considerations. Permanent disability tends to increase settlement amounts significantly.
Medical Expenses
Past and future medical costs directly associated with the injury form another key element of personal injury settlements. This includes expenses from hospitalization, surgery, medications, physical therapy, assistive devices and any other treatments already received or recommended. Itemized medical bills and expert testimony help substantiate these costs. Ongoing treatments for permanent injuries may be calculated up to 20+ years into the future. While the average settlement is around $50,000, most people receive between $3,000 and $25,000 depending on the specifics of their case.
Other Monetary Losses on Personal Injury Cases
In addition to the major categories above, settlements may compensate for miscellaneous out-of-pocket expenses tied to the injury. For example, costs for household services the injured person can no longer perform, property damages, travel for medical appointments, damaged personal property and more. Skillful plaintiff lawyers will identify all monetary losses stemming from the incident.
Pain and Suffering
Personal injury settlements almost always include extra compensation for the plaintiff’s physical pain and emotional suffering. Unlike the economic damages above, pain and suffering have no definitive market value. The amount awarded is subjective and depends on factors like the severity of the injury, length of recovery, degree of impairment/disability, extent of emotional distress, plaintiff’s age and more. Jury verdicts in similar cases can act as guidance. About two-thirds of personal injury cases are resolved through settlements rather than going to trial.
Punitive Damages
In cases where the defendant’s behavior was found to be reckless or intentional, the settlement may include punitive damages meant to punish the defendant and deter future misconduct. Awards are higher when willful negligence or malice is involved. Although less common in settlements compared to jury verdicts, the possibility of punitive damages provides plaintiffs more leverage in negotiations. Personal injury cases that reach federal court typically involve damages claims exceeding $75,000.
Strength of the Personal Injury Case and Liability
The overall strength of the plaintiff’s case and the degree of provable liability against the defendant also sway settlement amounts, regardless of the exact economic losses. Defendants are motivated to settle stronger cases for higher sums to avoid an even larger verdict at trial. Weaker liability or questionable injuries lower settlement value. Experienced attorneys account for these strategic factors.
The financial resolution of a personal injury claim depends on many unique factors related to the plaintiff, defendant, and specifics of the incident. Working with a knowledgeable personal injury attorney allows injured parties to maximize their compensation recovery and obtain the settlement amount they deserve based on the true economic value of their damages and losses.
