How Do Attorneys Determine A Settlement Amount?

The vast majority of personal injury cases are settled out of court, which means that both sides come to an agreement before the case ends up in front of a judge. When working to determine a fair settlement amount, what factors will your lawyer consider? In today’s blog, we take a closer look at how your injury lawyer will work to develop a fair and accurate settlement amount to ask for from the other side.

What Factors Are Considered In An Injury Settlement?

Determining a fair settlement amount is arguably the most complex part of an injury case. While a lot of the factors that go into the settlement are similar, putting a dollar amount to each of these is no easy task. Here’s a look at some of the ways your lawyer will work to develop a fair and accurate settlement claim:

Current Medical Expenses – First, they’ll start by looking at any medical expenses you have incurred as a result of your injuries. Current medical bills or surgical expenses are pretty easy to quantify because you will likely have bills from the medical center.

Future Medical Expenses – Things get a bit harder when you start trying to put together a number to account for future medical expenses. Your lawyer will likely consult with your physician to get a better understanding of what your future medical care and needs will look like, as this will dictate how they’ll account for future medical expenses in your settlement offer.

Non-Medical Expenses – Your lawyer will also take into account any non-medical expenses you’ve incurred as a result of your injuries. If you suffered property damage or need to account for lost wages at work, your lawyer will consider these non-medical expenses when developing your claim. Your lawyer may need to assess paychecks or receipts to put a fair amount to these expenses.

Pain and Suffering – Your lawyer will also determine if factors like pain and suffering or mental anguish are compensable in your claim. If they believe you are eligible for compensation for these factors, they will need to spell out why they are putting a specific dollar amount to these factors. Previous case law or similar rulings can help to set the precedent for these aspects of your claim.

Effective Communication – Your lawyer will also work hard to connect with any involved parties to build their case and form a fair demand letter. Your lawyer will talk with you about the accident and your injuries, they’ll consult with any witnesses and they’ll reach out to your doctor to make sure they are asking for the right amount in your claim. These conversations serve to build and strengthen your claim.

The Counteroffer – It’s very rare for the insurance company to agree to all aspects of your demand letter, so another important aspect of developing a fair and accurate settlement agreement is to closely examine the counteroffer proposed by the insurance company. This will help to determine where they believe you are asking for fair amounts and where they think you are overvaluing your claim. Your lawyer can evaluate the counteroffer, add more evidence or adjust their claim as needed to provide your own counter to this counteroffer.

Putting specific values to these factors isn’t easy, but it’s something Dean and the team at Margolis Law Firm do regularly for their clients. Don’t try to build a demand letter on your own, because there’s a good chance that the insurance company will end up taking advantage of your inexperience. Instead, connect with a firm who knows how to put forth a fair and strong settlement offer and get you the compensation you deserve. For more information, or for help with a different aspect of your claim, reach out to Margolis Law Firm today at (952) 230-2700.