Settlement Breakdown: Examples from Personal Injury Settlements
When you’re involved in a personal injury case, whether from a car accident, a slip and fall, or another unfortunate incident, one of the most important things to understand is how settlements work. But how do settlements work? What should you expect to be covered, and how can you ensure you get a fair deal? Answers to these questions not only shed light on key aspects of the legal profession but can also help you understand the next steps in your legal journey.
What is a Settlement, and Why Does It Matter?
A settlement is a legal agreement where the injured party receives compensation from the at-fault party, typically without going to trial. In personal injury cases, settlements provide a way to recover damages for medical bills, lost wages, pain and suffering, and other losses resulting from an accident or injury. Settlements are negotiated between the injured person (or their lawyer) and the at-fault party’s insurance company or legal team.
Understanding the scope of a settlement is essential, as it determines whether the compensation fully addresses current and future needs. Settlements often include economic damages like medical expenses and loss of wages and non-economic damages, such as pain and suffering. However, not everything may be covered, such as long-term care needs, unless specifically negotiated.
Settlements offer several advantages, including faster resolution and avoiding the uncertainties of a trial. They allow both parties to avoid the cost and time involved in litigation. Most importantly, they provide financial relief to the injured party so they can begin moving forward after an accident.
Components of a Personal Injury Settlement
Personal injury settlements typically consist of two main types of damages: economic and non-economic.
Economic Damages cover the tangible, quantifiable losses you’ve experienced due to the injury. This type of damage includes medical expenses like hospital bills, surgery costs, rehabilitation, and future medical care if your injuries require ongoing treatment. If your injury has impacted your ability to work, your settlement could include economic damages for current and future lost income. And property damage, such as damage to your vehicle in a car accident, also falls under this category.
Non-economic damages, on the other hand, compensate for intangible losses like pain and suffering, emotional distress, and loss of enjoyment in life. These damages are harder to quantify because they involve subjective experiences but play a significant role in personal injury settlements. Courts often use various methods to calculate non-economic damages, considering the severity of the injury and its impact on the victim’s life.
Examples of Settlements Where the Victim Received Fair Compensation
Here are some examples of settlements we’ve handled and the possible outcomes in these types of cases.
Bowling Alley Slip and Fall
We represented a client who slipped and fell near the foul line at a bowling alley, shattering her wrist. Despite the severity of the injury, her claim was initially denied by the insurance company because she said she didn’t see anything that could have caused her to slip.
We discovered a crucial detail: the oil used to condition bowling lanes can be slicker than ice but is invisible to the untrained eye. We called in an expert in bowling alley safety from New York City who explained to the jury the dangers of lane-conditioning oil when it spreads to walkways. This resulted in a six-figure settlement for our client.
Drunk Driving Settlement
Dram Shop laws hold drinking establishments liable if someone who was served there causes an accident. In this case, only a month had passed since a drunk driving accident, but valuable evidence, specifically video from the bar, was already gone. Not only did this prolong the case but without video, hiring expert witnesses was necessary.
While H&M is often able to win these cases and hold bars accountable, it is always best to contact a lawyer right away before evidence is destroyed. Hipskind & McAninch ultimately resolved the Missouri Dram Shop case for $900,000.
Driving on the Clock
An H&M client suffered devastating injuries in a car accident. Initially, it appeared there was only $250,000 in insurance availble if the case was pursued against the driver alone. That number was hardly enough to cover medical expenses, let alone the client’s pain and suffering and lost wages.
After a thorough investigation and working in close consultation with the client’s spouse, we learned that the accident happened while the at-fault driver was running an errand for his employer. Through depositions, H&M attorneys were able to uncover facts that revealed the driver was considered on the clock under Illinois law. After conducting the depositions, and some negotiation, the Company offered its full policy limit, resulting in a settlement of more than $2 million.
The Importance of Negotiating a Settlement
Negotiating a settlement is critical in ensuring you receive fair compensation for your injury. Insurance companies often start with low initial offers, aiming to minimize their payout. Without a thorough understanding of your case’s value, there’s a significant chance you will accept an offer that doesn’t cover all your damages, especially future medical expenses or lost earning potential.
Consequently, a lawyer can be invaluable in this process. Attorneys skilled in personal injury law know how to calculate the true value of your case, considering medical bills, long-term care, loss of wages, and the pain and suffering you’ve endured. They also understand insurance companies’ tactics to undervalue claims and can counter them effectively.
Negotiating also helps avoid a trial’s unpredictability and time commitment while still working toward a fair outcome. Settling before court can be quicker, but it doesn’t mean you should rush the process. Taking the time to negotiate properly can result in significantly higher compensation. Having legal representation ensures you won’t be pressured into accepting a settlement that doesn’t reflect the true cost of your injuries and the impact on your life.
If you’ve been injured and are navigating a settlement, having an experienced attorney on your side can make all the difference. Contact our team today to ensure you get the fair compensation you deserve without settling for less than what your case is worth.
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car accident, fair compensation, loss of wages, medical expenses, personal injury settlement, Personal Injury Settlements, Settlement Breakdown, slip and fall