It is worth reviewing car accident lawsuits in which insurance companies have
made offers well below the total consequently recovered by the plaintiff at
trial. These cases illustrate the variables that might come into consideration
in the offer and the elements that might affect the final result.
In this claim an individual driving an SUV was involved in an accident with bicyclist. According to the bicyclist, the driver was coming in the opposite direction when, suddenly, he made a U-turn right in front of him causing the plaintiff to go over the SUV’s hood. The plaintiff tore a cartilage in his wrist during the accident. This caused him difficulties at work where he was a mechanic for a high-end motor vehicle dealer. Testimony from a doctor pointed out that the bicyclist will most likely require surgery to fuse the bones in his wrist at some point in the future and that when this happens it will probably stop him from continuing to hold down a job as a mechanic. Consequently the bicyclist would likely not be able to make as much money in the future leading to a loss of earning capacity.
This added the driver’s employer as a defendant. Early on the insurance company for the driver made an offer to settle the case for $10,000. The week prior to trial they increased their offer to $30,000.
Part of this amount ($250,000) was for economic damages and part ($300,000) was for the non-economic damages such as pain and suffering and the nature of the injury.
Here we have a claim where liability was not in dispute. What was an issue was the value of the bicyclist's injuries. The insurer probably viewed this personal injury matter as just involving a minor injury that resolved itself relatively fast. From this viewpoint an offer of $30,000 might appear reasonable.
The law firm that helped the victim, on the other hand, realized that it was not that simple. This injury was one that was not resolved but instead one which left the plaintiff with a weakened wrist – a wrist that in time would need serious surgery after which the wrist would never be the same again. The law limited how much time the plaintiff had to pursue a lawsuit so he could not wait until the wrist failed him as at the same time it would be too late. However the law did let him to recover now for future consequences of the injury. This is how the law firm positioned the case on behalf of the victim and the jury agreed.
In this claim an individual driving an SUV was involved in an accident with bicyclist. According to the bicyclist, the driver was coming in the opposite direction when, suddenly, he made a U-turn right in front of him causing the plaintiff to go over the SUV’s hood. The plaintiff tore a cartilage in his wrist during the accident. This caused him difficulties at work where he was a mechanic for a high-end motor vehicle dealer. Testimony from a doctor pointed out that the bicyclist will most likely require surgery to fuse the bones in his wrist at some point in the future and that when this happens it will probably stop him from continuing to hold down a job as a mechanic. Consequently the bicyclist would likely not be able to make as much money in the future leading to a loss of earning capacity.
This added the driver’s employer as a defendant. Early on the insurance company for the driver made an offer to settle the case for $10,000. The week prior to trial they increased their offer to $30,000.
Part of this amount ($250,000) was for economic damages and part ($300,000) was for the non-economic damages such as pain and suffering and the nature of the injury.
Here we have a claim where liability was not in dispute. What was an issue was the value of the bicyclist's injuries. The insurer probably viewed this personal injury matter as just involving a minor injury that resolved itself relatively fast. From this viewpoint an offer of $30,000 might appear reasonable.
The law firm that helped the victim, on the other hand, realized that it was not that simple. This injury was one that was not resolved but instead one which left the plaintiff with a weakened wrist – a wrist that in time would need serious surgery after which the wrist would never be the same again. The law limited how much time the plaintiff had to pursue a lawsuit so he could not wait until the wrist failed him as at the same time it would be too late. However the law did let him to recover now for future consequences of the injury. This is how the law firm positioned the case on behalf of the victim and the jury agreed.
