When an individual suffers immense physical trauma that results in long-term pain, limitations, and financial instability, they have the right to pursue compensation. Catastrophic injury claims allow victims to seek financial restitution for the harm they have experienced. This blog explores how devastating injuries can increase the value of a settlement and why lifelong injuries require higher settlements to fully compensate the victim.
What Is a Catastrophic Injury?
An injury is considered catastrophic when it has a lasting impact on the victim’s life. When an injury results in permanent disability or disfigurement, significant loss of earning capacity, and extensive and costly medical treatment, it is legally classified as catastrophic. Common examples of these catastrophes include spinal cord damage resulting in the victim being wheelchair bound, traumatic brain injury, severe burns, and amputations. Victims usually require lifelong medical care and support from family members.
What Is a Personal Injury Settlement?
When an individual is injured and decides to pursue legal action, they must pursue settlement negotiations before they receive any money. A settlement is a sum of money that is paid to a claimant to compensate them for their injury and subsequent losses. Settlement amounts comprise two categories of damages that the injured party can claim for. Damages are split into economic and non-economic categories, or they can be called tangible and intangible losses.
In a catastrophic injury claim, economic damages can include current and future medical expenses, live-in care, home and vehicle modification, lost wages, lost earning capacity, medications, hospital stays, and surgeries. Non-economic damages are usually related to physical pain and psychological distress. Pain and suffering, diminished quality of life, and loss of companionship are the most common non-economic damages awarded.
Settlement negotiations take place between the plaintiff and the defendant, who are typically represented by either an attorney or an insurance adjuster. Negotiations involve presenting evidence and discussing the case until both parties reach a consensus on a fair settlement amount. Settlement negotiations are intended to keep claims out of court unless it is absolutely necessary. Most of the time, catastrophic injury claims are resolved through settlements.
What Affects the Value of a Claim Settlement?
During settlement negotiations, both parties will assess several different factors that will either increase or decrease the settlement offered. Every claim is unique, and every plaintiff is impacted differently by a catastrophic injury. The following factors are the starting point for most negotiations.
Shared Liability
In California, courts use a system called comparative liability to determine who is at fault. Under comparative liability law, each party is assigned a percentage of fault. The injured person may be partially at fault depending on their contribution to the incident. For example, if the plaintiff is injured in a car accident by someone who was speeding, but evidence shows that the plaintiff wasn’t wearing a seatbelt, they are considered partially at fault.
Injury Severity
The severity of the plaintiff’s injuries is the main factor that determines their settlement. Mild injuries like bruises and sprains may only justify a minimal settlement, because they heal quickly. However, catastrophic injuries that may never heal justify a substantial settlement that takes the permanency of the injuries into account. Permanent disabilities generally receive the largest settlements because they are undeniably devastating.
Medical Treatment
The cost of medical treatment is an essential factor in any settlement negotiation. Treatment expenses can be immense and may lead to lifelong financial instability for the victim and their family. Settlements must be large enough that they cover all the victim’s medical expenses for the rest of their life. Attorneys and economic and vocational experts will work together to calculate the actual long-term costs of the plaintiff’s catastrophic injury.
Income
The plaintiff’s income before the incident must also be considered because lost income is a serious issue that can have a devastating impact on families. In addition, employment benefits like insurance and retirement funds are included. Vocational experts will also provide insight into the victim’s potential increases and promotions that they no longer qualify for after their injury. Expert testimony is vital during settlement negotiations to provide an objective context.
Psychological Distress
Physical harm is only one aspect of a catastrophic injury. The reality is that emotional damage is a normal consequence of adjusting to a new way of living. Many victims experience severe post-traumatic stress disorder, depression, anxiety, panic disorders, lost emotional connections with loved ones, and significantly reduced enjoyment of life. The mental consequences of a serious injury should be treated with the same consideration and respect as physical effects.
Legal Expertise With HHJ Trial Attorneys
The aftermath of a catastrophic injury can be extremely challenging to navigate. The legal system is complex, and victims in recovery often do not have the capacity to handle a claim. Unfortunately, this means that many victims delay legal action until they have adjusted to life after injury, which can be disastrous if the statute of limitations passes. It is essential to start the process immediately to avoid complications later on.
Working with an attorney who has experience with catastrophic injury cases can help victims and families focus on moving beyond the accident. At HHJ Trial Attorneys, we are passionate about helping victims who have experienced life-changing injuries so they can have financial security. Furthermore, we understand that no amount of money can undo an injury, but for many, holding the at-fault person accountable for their actions provides closure.
