How Much is My Personal Injury Case Worth?

Posted on June 16, 2008 by Jason Fernandez

How Much Is My Case Worth?

Of all the questions my clients ask me, there is one I dread more than others – “how much is my case worth?” For lawyers, the ethical restraints of our profession prevent us from answering that question. More often than not, the problem with the question is timing. No lawyer should attempt to settle a personal injury claim before the client finishes his/her medical care or reaches the point of maximum medical improvement. Once that point is reached, the lawyer can review the particular circumstances of the case and use his/her experience to approximate a fair value range for the client’s claim.
There are many factors that go into a case assessment. A few of the most common factors are the type of injuries suffered, the treatment those injuries required, the length of that treatment, and the cost of that treatment. Also included in the valuation of a case is any lost wages as a result of injuries or other “special” damages (i.e., expenses for the client that would not have been incurred if not for the accident). A lawyer must also consider whether the client suffered a permanent injury, any resulting disability, and the need for future medical care. In some cases involving lacerations and the like, scarring or disfigurement is also evaluated.
When looking at these many factors (and there are many more to consider), a lawyer uses his/her experience to estimate what a judge or jury may award the client seeking compensation. This then becomes the baseline for negotiating with the at-fault party’s insurance company.
Insurance companies also evaluate claims. The worst-kept secret of the insurance industry is that they use a massive computer database to assist in their evaluation of claims. The insurance companies collect data on all claims that are submitted. They track those claims locations, injuries, treatments, and ultimate dispositions (whether by settlement or verdict in court). They then use this information to approximate their opinion of the value of the claim. Of course, the number value that the insurance company assigns to a claim is frequently different from the lawyer’s opinion of a claim’s value. The difference of opinion is worked through during the negotiation phase. If a fair settlement is not obtained via negotiation, the case must be litigated.
Injured persons should keep in mind that insurance companies want to settle claims for as little as possible. In addition, it benefits the insurance company to delay paying claims for as long as possible – they stick the earmarked amount (the insurance company’s original guess as to the new claims value) in an interest-bearing account thereby minimizing their ultimate loss on the claim.
As always, it is important that injured people speak with an experienced attorney prior to settling a claim to make sure that a fair amount is being offered.

For more information on personal injury case issues, please visit our website at personal injury issues. For more information on our personal injury lawyers, please click personal injury lawyers.

Tags: , , , , , , , , ,