Determining the settlement amount in a personal injury case is often a complex process. It involves several factors that must be carefully assessed to arrive at an amount that fairly compensates the injured party for their losses.
The first step in determining a settlement amount is calculating economic damages. These are quantifiable costs directly associated with the injury, such as medical expenses, lost wages and property damage. Medical expenses include not only hospital bills but also costs for rehabilitation, therapy sessions, medications and any necessary medical equipment. Lost wages take into account both past income lost due to time off work for recovery and future income if the victim’s ability to work has been permanently affected.
Non-economic damages are more subjective and harder to quantify than economic damages. They include pain and suffering, emotional distress, loss of enjoyment of life, disfigurement or physical impairment. To calculate these damages, many attorneys use a multiplier method where they multiply the total economic damages by a number typically between 1.5 and 5 depending on severity of non-economic losses.
Another factor considered when determining a settlement amount is liability or who was at fault for the accident causing injury. If it’s clear that one party was entirely at fault, then they would be responsible for all damages incurred by the injured party. However, if liability is shared among multiple parties or if there’s some question about who was at fault then this can reduce potential settlement amounts.
In addition to these factors, insurance policy limits also play a role in how much compensation can be received from an insurance company following an accident causing personal injuries. Even if your injuries warrant higher compensation than what’s covered under an insurance policy limit you may not receive more than what’s available under those limits unless you pursue additional legal action against other liable parties involved in your accident.
Lastly but importantly is considering whether punitive damages apply which are intended to punish defendants rather than compensate victims especially in cases involving gross negligence or malicious intent.
It’s important to remember that every personal injury case is unique and the process of determining a settlement amount can be complex. It involves understanding not only the legal aspects but also medical issues and financial considerations. Therefore, it’s highly recommended to seek advice from an experienced personal injury attorney who can help navigate through these complexities and ensure fair compensation for all losses sustained due to the accident.
Munley Law Personal Injury Attorneys
1617 John F Kennedy Blvd #1690, Philadelphia, PA 19103
12155157747