How Are Personal Injury Settlements Paid Out?
Personal injury cases aim to provide aid for individuals who have suffered an injury due to the negligence, recklessness, or intentional actions of someone else. These cases encompass a wide range of incidents, from automobile accidents and medical malpractice to workplace injuries and defective products. Each of these has the potential to significantly impact the victim’s life, possibly permanently.
Personal injury law seeks out the appropriate compensation for the injured individual’s pain and suffering. This can come in various forms, including compensatory damages for medical expenses, lost wages, and emotional well-being, as well as punitive damages intended to punish wrongdoing and deter future misconduct.
Understanding the types of compensation is an important step for victims as they navigate the difficult path to obtaining the financial support necessary for moving forward in their lives.
Understanding Personal Injury Compensation
Compensation can be classified into two main types: compensatory and punitive damages.
Compensatory Damages
Compensatory damages are intended to make the injured party “whole” again, covering tangible losses such as medical bills, rehabilitation costs, lost wages, and property damage, as well as intangible losses like pain and suffering, emotional distress, and loss of enjoyment of life.
Punitive Damages
On the other hand, punitive damages are awarded in cases of excessive wrongdoing to punish the defendant and deter similar conduct in the future, although they are much less common.
Sources of this compensation are varied, and, for most accidents, any compensation due will be paid by an insurance company. While it is technically sometimes possible to attach the negligent party’s personal assets, it is far more difficult and thus far rarer. In other cases, funds might be set up for victims of certain types of accidents or crimes.
Obtaining Damages: What To Know
Securing these funds involves expertise to accurately assess the full extent of damages, negotiate with insurance adjusters, and advocate for the victim’s rights in court (if necessary). For this process, it’s recommended to obtain knowledgeable legal representation to help guide victims through the complexities of the claims process.
Knowing what damages are possible, especially non-economic damages like loss of consortium or loss of companionship, can be complex. Reach out to a personal injury lawyer in Allentown or another near you for more about your case’s specific details.
The Process of Securing Compensation
Securing compensation begins with filing a claim. You may do this yourself, but it’s better to enlist the services of a local Bethlehem personal injury lawyer.
This step involves careful preparation and involves gathering comprehensive evidence and documentation to establish the extent of the damages. Evidence like medical records, witness statements, expert testimonies, and photographic evidence can play a large role in painting a clear picture of the impact this incident had on the victim’s life.
It helps set the stage for the negotiation process with insurance companies or opposing legal teams. Outcomes could hinge on the ability to convincingly argue the claim’s merits, using collected evidence to justify the compensation sought. This stage often involves a lot of back-and-forth discussions. An experienced personal injury lawyer can help make a significant difference when advocating for the victim’s best interests.
Attorneys like ours at Cohen, Feeley, Altemose & Rambo are excellent at navigating these negotiations, ensuring that settlement offers reflect the true extent of the damages suffered. The goal is to arrive at a fair and just settlement that adequately compensates the victim. “Nothing can undo the impact of an accident on victims’ lives,” relays attorney Stephen Shamberg, “but compensation allows them to move forward from the incident with the financial support necessary for recovery.”
Settlements and Trial Decisions
There is no fixed minimum settlement amount that applies universally to all personal injury cases. Settlement amounts can be influenced by various factors, including:
- The severity of injuries
- The impact on the victim’s life
- Medical expenses
- The type and extent of medical treatment
- The circumstances of the accident
Each case is unique, and settlements are generally tailored to reflect the specific damages and suffering of the injured party. Negotiations between the plaintiffs and defendants (often facilitated by attorneys) aim to reach an agreement that appropriately compensates the victims.
If you’re deciding whether to accept a settlement offer or proceed to trial, the decision ultimately comes down to the plaintiff. While personal injury lawyers can provide excellent advice and recommend the best course of action, the final choice belongs to the client and the client alone.
This is a hefty decision, and multiple factors need to be taken into account. Some of these factors could include the attorney’s counsel, the likelihood of a favorable trial verdict, the potential differences in compensation, and the emotional and financial costs of a trial. Accepting a settlement offer can provide a quicker resolution and guaranteed compensation, while going to trial offers the possibility of a higher award but with added risk.
What To Expect When Going To Trial
When deciding to take a personal injury case to trial, one must weigh the potential risks against the rewards. A trial could offer the possibility of a larger award than what might be achieved through settlement negotiations. However, it could also come with uncertainties and downsides, such as the unpredictability of jury decisions, increased litigation costs, and the possibility of a prolonged legal process.
This phase generally requires an evaluation of the strength of the evidence, the clarity of liability, and the overall impact of the injury on the victim’s life, balanced against the emotional stress and financial costs of a trial.
The trial process begins with jury selection, where attorneys for both sides select jurors who they believe might be most valuable in their case and have no bias. This is then followed by opening statements, the presentation of evidence and witness testimony, and closing arguments.
Throughout the trial, both sides make their case, with the ultimate goal of convincing the jury of their version of events. These trials can be complex, involving detailed medical evidence, expert testimony, and legal arguments. They can be emotionally taxing, too.
Verdicts in personal injury cases are essentially determined by the jury based on the evidence presented during the trial. The verdict dictates the outcome of the case and the amount of compensation received. This number is based on the damages proved by the plaintiff, including medical expenses, lost wages, pain and suffering, and more.
A favorable verdict can provide victims with the financial resources needed for their recovery. Remember that the amount can vary significantly based on numerous factors, some of which are outlined above.
Executing Releases: Finalizing the Settlement
After an agreement between both parties is finalized, it’s time to execute releases. This is a formal procedure marking the conclusion of the negotiation phase of a trial and marks that both parties fully agree to the terms of the settlement. The release is a binding document that means the claimant agrees to not pursue any further legal action against the at-fault party. As the injured party, one should thoroughly review the terms that have been laid out.
Ask any questions to your lawyer before signing this document, as you are waiving your right to seek any additional compensation for this incident in the future. Since this is a significant document, an attorney is usually involved in drafting and reviewing. This helps ensure that all the steps have been followed and everything is accurate.
Navigating the Resolution of Liens
One aspect of personal injury cases is claims made by third parties — otherwise known as liens. Third-party lienholders can include people such as healthcare providers, insurance carriers, or manufacturers, and they can affect the outcome of a verdict or settlement. Liens have to be resolved before the victim has any access to their settlement; failure to address them could lead to legal trouble in the future.
Typically, resolving liens involves negotiation with lienholders to agree on a fair amount that can be repaid from the settlement. This can heavily affect the total net settlement amount that the injured receives, which can make this a very delicate and painstaking process. Attorneys can use their knowledge and negotiation skills to reduce lien amounts, helping the injured party keep the largest amount of the settlement sum possible.
How To Collect Your Settlement Check
Once a settlement agreement is reached, the process to collect the settlement check begins. Initially, both parties typically sign a release form, agreeing to the settlement terms and waiving any future claims related to the incident. After the release is signed and returned, the defendant (or their insurance company) processes the payment. This process can vary in time, but it often takes a few weeks.
If it takes longer, follow up with the appropriate departments. The settlement check is sent to your attorney’s office first, where any outstanding legal fees, expenses, and liens (such as those for medical bills) are deducted. After these deductions, usually, your attorney issues you a check for the remaining balance. Communicate with your personal injury attorney throughout the process to understand the timeline and any actions you may need to take.
What About Taxes?
According to the IRS, any settlement amounts awarded for medical expenses or pain and suffering are typically tax-exempt. Notably, there are exceptions; for example, punitive damages and interest on the settlement are taxable.
Given the complexity of tax laws, consulting with a tax professional or accountant is definitely recommended in order to ensure compliance with IRS regulations in the United States.
How To Maximize Your Potential Compensation
To help ensure the maximum compensation possible for a personal injury claim, try taking the following steps. These steps could help to strengthen your case and help accurately portray the pain, suffering, and injuries you experienced as a victim.
1. Start With Seeing a Doctor
You must seek medical attention immediately after your incident, if possible. This is perhaps one of the most important things that could factor into a case. With a proper medical exam, you and your doctor can ensure your injuries are properly treated while also beginning a paper trail of records that can serve as concrete evidence later if you decide to take your case to trial.
2. Follow Your Doctor’s Advice
Your doctor gave you a treatment plan for a reason, so follow it as accurately as possible. Attend all follow-up appointments and take any medicine or physical therapy sessions that were prescribed.
Failing to follow your doctor’s advice could be used against you by insurance companies. Insurers might try and argue that your injury isn’t as severe as initially reported or that you contributed to the prolongation of your recovery.
3. Gather and Preserve Evidence
Your claim is only as strong as the evidence you can present. This includes but is not limited to photos/videos of the incident, scene, and injuries, witness statements, and accident reports.
Keeping a personal journal throughout this time can be beneficial in tracking daily pain levels, emotions, and how the accident and injuries have affected your day-to-day life as a whole. Try to be descriptive with your entries: Start writing as soon as you possibly can after the incident. To doubly ensure attorney-client confidentiality, write “for my attorney” at the start of the journal.
4. Refrain From Talking To Insurance Companies
Insurance adjusters are going to contact you to request a statement or even offer a settlement. They do so under the guise that it could help you settle your claim faster, but this isn’t usually the case. To be honest, it mostly just catches people off guard.
Their goal is to minimize the company’s payout — interacting with them without proper guidance from a lawyer can jeopardize a claim. Any statements about fault or the extent of your injuries can be taken out of context to reduce your compensation, so it’s usually best to let an experienced attorney, like an Easton personal injury lawyer, handle any communications.
5. Contact a Personal Injury Firm
Our team at Cohen, Feeley, Altemose & Rambo is prepared for every aspect of your case, from gathering evidence to representing you in court if necessary. Securing experienced legal representation is one of the most effective steps to hopefully maximize compensation.
Factors That Can Influence the Value of a Claim
If you have any pre-existing conditions or illnesses, make it known. Both insurance companies and defense attorneys scrutinize anything “pre-existing,” arguing that the injuries sustained are not entirely due to the current incident but are exacerbations of prior health issues.
- Note: Certain states have a tort doctrine called the “Eggshell Skull Rule” that helps protect people from having their pre-existing conditions weaponized against them.
This could potentially decrease the value of your settlement with proper medical documentation and testimony and can be avoided. If you involve a government entity as liable for any damages in your claim, prepare for some complications. Claims against these individuals are subject to limitations, such as shorter filing deadlines and caps on damages, which can influence your overall settlement amount.
Another factor at hand is workers’ compensation. If the injury occurred due to job-related duties, workers’ comp may be the primary source for your recovery of medical costs and any lost wages. In addition to collecting workers’ comp benefits, you might be able to file a separate personal injury claim against any third parties who may also be responsible.
Finally, bear in mind that following through with a claim could involve notable costs. Be prepared to pay for any medical evaluations, legal fees, and court expenses upfront. (Check that you are financially able to continue paying these for the duration of your trial.)
Keep in mind these costs add up over time, and may affect your net compensation. Discuss all the financial aspects with your PI lawyer early in the process to help ensure transparency on both sides.
Proven Success in Personal Injury Representation
Navigating compensation and healing after a personal injury can be daunting. The importance of choosing a legal advocate who not only understands the intricacies of the law but also genuinely cares about your recovery is vital.
Cohen, Feeley, Altemose & Rambo embodies this ideal, with over five decades of collective experience in successfully representing victims of personal injuries. Our firm’s commitment to justice is evident in our positive track record, where we have recovered over $120 million for our clients.
At Cohen, Feeley, Altemose & Rambo, we understand that behind every case is a pivotal moment in someone’s life. Our attorneys approach every case with a sense of responsibility and empathy.
We listen to our clients to truly understand their experiences and respect their needs throughout the legal process. We strive to both advocate for our clients’ rights and provide a source of support and guidance during what is often one of the most challenging periods of their lives.
Please note that not every case leads to a courtroom; in many instances, our team negotiates settlements outside of court, communicating with insurance companies and adjusters on your behalf.
If litigation becomes necessary, our experienced litigators are fully prepared to take your case to court. We are committed to providing the highest level of representation and handling your case with the diligence and expertise required to secure the compensation you deserve.
Talk About Personal Injury Settlements Today
If you’re seeking a legal partner to guide you through the aftermath of a personal injury, you’re in the right place. Reach out to us at (610) 625-2100 or click here for a complimentary consultation. At Cohen, Feeley, Altemose & Rambo, we’re more than just your attorneys; we’re your advocates, committed to securing the best possible outcome for you.
Let us lend our expertise, dedication, and proven track record to your cause. With us by your side, you can embark on your journey towards recovery and justice with peace of mind.
Sources:
compensatory damages | LII / Legal Information Institute
Workers’ Compensation Coverage and Benefits | Department of Labor & Industry
Tax Implications of Settlements and Judgments | Internal Revenue Service