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How Do Lawyers Determine the Value of My Case?
There
are several elements of damages that courts allow plaintiffs
to recover when they are the victim of a personal injury. Pain
and suffering and mental anguish are in a category called general
damages. Lost wages, and medical expenses are called special
damages.
The value of general damages in most personal injury cases
are determined by a combination of the lawyer's past experience
with the same type of cases and by reviewing the case law
(jurisprudence) on similar types of injuries. Virtually every
conceivable type of personal injury has been previously decided
by juries and courts prior to the time you filed your case.
Thus, a range between high awards and low awards exists which
establish the value of the case. Ultimately, if a jury or
judge awards an amount which is significantly higher or lower
than the prior cases awarded, the court of appeals can increase
or decrease award. In fact, for most injuries the courts of
appeal have established a minimum to be awarded for pain and
suffering damages when that injury occurs.
The courts also establish rules for recovery of special damages
like lost wages. Many states allow the plaintiff to recover
the gross amount of the wages they would have received before
taxes would be taken out. However, future lost wage awards
are usually required to be reduced to the present value. Otherwise,
an award of future wages could be invested to make more than
a person would make in the future.
Courts may also allow the plaintiff to recover medical expenses
from the person who injures them even if the plaintiff's own
medical insurance paid for those medical expenses and the
plaintiff did not have "out of pocket" expenses.
In those instances, the plaintiff's medical insurer may have
a lien or right of recovery against the proceeds the plaintiff
receives from the party who injures him.
Once the range for the gross value is determined, other factors
should then be considered to determine the value at which
the case can settle, if the parties are willing to settle.
For instance, what are the chances of proving liability? If
the chances of recovery are only 50%, then the range of value
should be reduced by a number close to 50% for purposes of
considering a settlement. The fault of the plaintiff or the
fault of a third party should also be considered in evaluating
the case.
Most jurisdictions require that the recovery of the plaintiff
be reduced by the fault of the plaintiff or the fault of third
parties. Thus, for purposes of evaluating the case for settlement,
this "other" fault must be considered.
If the case proceeds to trial and the plaintiff prevails,
legal interest is also usually awarded to the plaintiff. This
can be a significant amount if the case is a few years old.
Legal interest is not awarded if the case is settled. In some
states and under certain circumstances, attorney's fees and
court costs can also be awarded to the plaintiff who prevails
at trial. These sums should be made part of any valuation
made by your attorney.
All of these factors should be discussed with your attorney
to make an intelligent and reliable decision regarding the
prospect of settlement or trial.
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