Putting a Value on Your Personal Injury Case

Valuing a personal injury case is a crucial first step in seeking fair compensation after an accident caused by another's negligence. It's not a simple calculation; instead, it depends on various factors that impact both tangible and intangible losses. Understanding these factors and how to present them effectively can help maximize your recovery.

1. Gathering Documentation

The foundation of valuing your case lies in comprehensive documentation. Collect all relevant documents, including:

• Medical bills and records: Detailing all treatments, hospital stays, medications, therapy, etc.

• Wage statements: Showing lost income due to inability to work.

• Property damage estimates: For vehicle repairs or other damaged property.

• Other out-of-pocket expenses: Such as transportation costs to appointments or hiring help for daily tasks.

  
  

2. Calculating Economic Damages

Economic damages are the quantifiable financial losses directly resulting from your injury. These include:

• Medical Expenses: Sum up the costs of past and future medical treatments.

• Lost Wages: Calculate the income lost due to time off work.

• Property Damage: Include costs for repair or replacement of damaged property.

  
  

3. Estimating Non-Economic Damages (Pain and Suffering)

Non-economic damages are more subjective and compensate for the non-monetary impact of your injuries, like pain and suffering, emotional distress, and loss of enjoyment of life.

• Multiplier Method: Insurance companies and attorneys often use a multiplier (typically between 1.5 and 5) based on the severity of your injuries. Higher multipliers are used for more severe, long-lasting, or permanent injuries. For example, if your economic damages total $10,000 and the injury is moderately severe, you might use a multiplier of 3, resulting in $30,000 for pain and suffering. Note: While commonly cited, some experts suggest this method may be outdated for insurance companies who rely on more complex software.

• Per Diem Method: This method assigns a daily value to your pain and suffering, often based on your daily wage, and multiplies it by the expected recovery period.

  
  

4. Totaling Your Damages

Add the calculated economic damages and the estimated non-economic damages to arrive at an initial estimate of your case's value.

5. Important Factors Influencing Case Value

Several factors can significantly impact your personal injury case's worth:

• Severity of Injuries: Hard injuries (like broken bones) hold more value than soft tissue injuries. Permanent disabilities or disfigurement significantly increase compensation.

• Liability and Evidence: Clear evidence proving the other party's fault strengthens your case and increases its value.

• Insurance Coverage: The amount of insurance coverage available from the responsible party directly impacts the maximum potential recovery.

• Jurisdiction and Venue: State laws on damages caps, comparative negligence, and jury tendencies can affect the outcome. It is an acknowledged fact that juries in some geographic areas return higher verdicts than in others. For example, juries in the more populous urban centers are typically more liberal than those in less populated areas. Thus, if claimant is able to establish proper venue in one or more of the “liberal” counties, this will enhance the settlement value of the claim.

• "Target" Defendants: Even though jurors are instructed not to consider a defendant's apparent wealth in reaching a verdict on liability, the fact is they often do. Jurors are inclined to return considerably higher compensatory damages awards where defendant is a large corporation, than where defendant is an average person. Therefore, the size and apparent resources of the defendant can affect settlement value.

• "Sympathetic" Plaintiffs: Another relevant factor is just how “sympathetic” (or unsympathetic) plaintiff is likely to be perceived by a jury. Jurors tend to award higher verdicts in favor of plaintiffs with whom they identify. While it is difficult to quantify this factor in dollars or percentages, both sides recognize its importance.

• Attorney's Experience and Reputation: A skilled attorney with a strong track record can significantly influence settlement negotiations and potentially increase the case's value.

  
  

6. Use of Jury Verdict Summaries to Evaluate a Claim

Practically everyone involved in personal injury litigation—plaintiff and defense counsel, judges, and insurance claims representatives—regularly reviews jury verdict summaries (and to the extent available, settlement summaries). There is good reason for this: The most definitive method of putting a dollar value on a claim is to become acquainted with verdicts returned in recent similar cases in the same locale.

7. Consulting a Personal Injury Lawyer

Determining the true value of your personal injury case can be complex. A personal injury lawyer can provide expert guidance by:

• Reviewing your case thoroughly: Assessing injuries, evidence, and potential damages.

• Calculating economic and non-economic damages accurately: Using various methods and considering all relevant factors.

• Negotiating with insurance companies: Advocating for fair compensation.

• Preparing for trial: If a fair settlement cannot be reached.

  
  

Conclusion

Valuing a personal injury case involves a thorough examination of damages, liability, and other influencing factors. While online resources and general averages can provide a starting point, each case is unique and requires a personalized approach. Consulting with an experienced personal injury attorney is crucial to ensure all aspects of your claim are accurately assessed, and you receive the compensation you deserve.

Disclaimer: This website provides general information about legal issues and is not intended as legal advice. The information provided on this website is for informational purposes only and may not reflect the most current legal developments. You should not act or refrain from acting based on any information contained on this website without seeking professional legal counsel. No attorney-client relationship is created by your use of this website or by contacting us through this website.