Posts Tagged ‘What is my case worth?’

How to Negotiate a Personal Injury Settlement- Part 6

Thursday, August 20th, 2009

You have followed all of the first five steps and negotiations seem to have failed. You have written a letter regarding the severity of the injuries to the defense adjuster long before treatment was completed. Once the plaintiff reached maximum medical improvement, you wrote a demand letter to the adjuster and submitted it along with supporting documentation. You obtained the first offer from the adjuster along with the adjuster’s anticipated defenses. You decided upon a reasonable settlement value. You tested the adjusters’ resolve by asking for a better offer. You made counter offers utilizing the bracketing technique, and decreased your demand to the same extent that the adjuster increased his offer. The adjuster stopped increasing his offers and told you at least three times that his last offer was a final offer. Yet the adjuster still hasn’t offered to pay what you and your client decided to be a reasonable settlement offer.

Your choices appear to be twofold: you can either settle the case for less than you think it’s worth, or you can file a lawsuit and take the defendant to court. At this point, it is important that you don’t settle the case. I never settle a case for less than I think it’s worth unless my client instructs. And I never file a lawsuit until I’m convinced there is no way to convince the adjuster to pay what the case is worth. When negotiations appear to have reached an impasse, I do the following:

1. I obtain additional documentation to support the claim and ask the adjuster for a better offer. This additional documentation might come in the form of medical opinions, before/after witness statements (witnesses who can testify abouty my client’s injuries after the accident as compared to his or her physical condition before the accident), additional documentation to solidify the lost wages claim, additional documentation to support the mileage claim, additional documentation regarding the cost of future medical treatment, etc.. If this elicits a better offer, I then reinstate the bracketing procedure until we settle the case or reach another impasse. At this point, I like to start negotiating with the adjuster via fax or e-mail as opposed to over the phone. The adjustser has already told me that she will not pay a penny more on the case. By submitting the additional documentation along with a letter, it makes it easier for the adjuster to answer in writing, saving herself the embarrassment of acknowledging over the phone that her previous threat of a “final offer” was actually a bluff. It’s good to send this additional documentation little by little as opposed to all at once, because each time you send additional documentation you may receive an increased offer, and you can reinitiate the bracketing procedure.

2. I do jury verdict research and submit it to the adjuster. Westlaw has a jury verdict research function that allows me to look through cases which have previously been decided by a jury to find a case comparable to the one I am negotiating. If I can find some cases similar to the one I am negotiating but with verdicts higher than the defendant’s last offer, I submit them to the defendant’s adjuster and ask for a better offer. If this elicits a better offer, I reinitiate the bracketing procedure until the case settles or we reach another impasse.

3. If neither additional documentation nor jury verdict research get the case settled, I then prepare a complaint and discovery and send it to the defendant’s insurance adjuster, asking once again for a better offer and explaining that I will file the complaint and discovery if a better offer is not forthcoming. I indicate that my client is willing to continue negotiations if the defendant will increase the offer. If this elicits a better offer, I then reinitiate the bracketing procedure until the case settles.

4. If the case doesn’t settle, I file a lawsuit and prepare for trial. It’s important to be willing to walk away from a settlement if you don’t think it’s fair. Once I file a lawsuit, I send a letter to the adjuster saying that negotiations have failed, all settlement offers are off the table, and the cost of settling the case will increase with the amount of money I put into it.

The Value of Credibility in a Personal Injury Case

Saturday, August 15th, 2009

As a personal injury lawyer, I am frequently confronted with the question about how to value a personal injury case. My stock answer is that there are multiple factors which determine the value of a case: the clarity of liability, the egregiousness of the defendant’s negligence, whether the plaintiff was also negligent and to what extent, the severity of the injuries, the amount of medical bills, lost wages, and other economic damages, the age of the plaintiff, the venue (location where the suit will be filed), the plaintiff’s work history, the defendant’s character and mannerisms, the type of medical treatment the plaintiff receives, the plaintiff’s pre-existing conditions, the plaintiff’s criminal history, the defendant’s criminal history, the plaintiff’s claims history, the credibility of the parties, and a multitude of other factors. If I had to choose which of these factors is the most important in determining the value of a personal injury case, I would choose credibility. Credibility is the most important because all of the other factors depend upon it.

A jury trial is essentially a battle between stories. The plaintiff’s attorney tells his client’s story in the opening argument, then supports that story with evidence in the form of witness testimony, medical testimony, photographs, videos, films, and other physical evidence. Then, the defense attorney tells his side of the story in the same way. At the end of the trial, the jury is going to find in favor of the side with the most credible story. Jurors are smart, and they look for holes in the story. They look for lies and omissions. They like to reward honest people and punish liars.

The most effective way to lose a jury trial is to get caught in a lie. A case with egregious negligence, severe damages, and clear causation can be defeated if the jury thinks that the plaintiff lied. Defense attorneys will go through the plaintiff’s medical records carefully and ask hundreds of questions during the plaintiff’s deposition about details in the plaintiff’s medical records, hoping to catch the plaintiff making some inconsistent statements. A good defense attorney will do a thorough background check on the plaintiff, talk to her friends and neighbors, and go to the deposition armed with inside information. The defense attorney will then ask questions to which he already knows the answer, hoping he will catch the plaintiff in a lie. Often, the defense attorney places the plaintiff under surveillance doing certain tasks, and asks the plaintiff in deposition if she is able to do such a task. If the plaintiff tries to exaggerate her injuries and lies, the case value takes a nosedive.

The most effective way to win a jury trial is to expose the defendant as a liar while at the same time keeping the plaintiff’s credibility in tact. Of course, if the defendant is telling the truth, this is impossible to do. Unfortunately, most defendants will lie to protect themselves. Even in a case of clear liability, it’s important for the plaintiff’s attorney to do her homework on the defendant before the defendant’s deposition. I like to put the defendant under surveillance when the situation is appropriate. It is important to do a thorough background check of the defendant before the deposition, including a criminal history check, and interviews with his neighbors and associates. One particularly vulnerable area I like to attack is the defendant’s knowledge base. Defendant’s will often lie about whether they knew a particular action was dangerous. A thorough investigation may reveal situations in the defendant’s life where the defendant should have learned that such an action was dangerous. For instance, in a medical malpractice case, it’s sometimes easy to find out where the defendant doctor went to med school, and which professor taught him the course that is relevant to the medical malpractice case. If the defendant doctor’s opinion conflicts with his professor’s opinion, I bring that out in the deposition. This shows that either the doctor knew he was wrong and is lying about it, or that he didn’t pay attention during that course in medical school. Either way, his credibility is affected.

For more information regarding the importance of credibility in a personal injury case, click here.

Value of a Personal Injury Case

Sunday, August 9th, 2009

As a practicing personal injury attorney, I field questions from clients dozens of times a day. Most of the questions are related to what is clearly the most important issue on the clients’ minds: “What is my case worth?” The value of a personal injury case depends upon (1) the strength of the liability argument, (2) the severity of the damages, and (3) the clarity of causation.

The first question involved in evaluating a case is whether the parties of the lawsuit are guilty of negligence. Negligence is the failure to act as a reasonably careful person or company would act under like circumstances. Cases where there is clear negligence, such as when the driver of a motor vehicle rear ends another driver while texting, are more valuable than cases where the negligence is questionable, such as in a slip and fall case when there is water on the floor of a grocery store and nobody knows how it got there. The more egregious the negligence, the more valuable the case. Drunk driving cases are more valuable than cases where somebody carelessly runs a red light due to not paying attention. Equally as important is any negligence of the person pursuing the case, the plaintiff. If the defendant (the person being sued) can persuasively argue that the plaintiff is guilty of negligence (called comparative negligence in Florida), the value of the case drops. Jurors like to hold people responsible for their own actions.

The second factor in evaluating a case is the severity of the damages. Damages are the losses incurred as a result of the defendant’s carelessness. Economic damages such as lost wages and medical bills are the most important and easiest to prove. Many of my clients are more interested in how much they can expect to get for their pain and suffering. The value of a person’s pain and suffering depends upon the plaintiff’s diagnosis, the frequency and severity of the suffering, decreased ability to perform activities of daily living, any permanent impairment rating assigned to the plaintiff by his or her doctor, the frequency and type of medical treatment the plaintiff receives, and any pre-existing conditions the plaintiff suffered. Objectively verifiable diagnoses such as broken bones or herniated discs are more valuable than soft tissue injuries where the doctor has to rely on the plaintiff’s subjective complaints to render a diagnosis. Cases increase in value when the plaintiff suffers frequenty and severely, and when the suffering is expected to continue for an extended period of time. I tell my clients they would much rather have a healthy body than a valuable case. Cases involving surgery or injections are more valuable than cases where the plaintiff underwent only chiropractic treatment or physical therapy. Cases with plaintiffs who suffered no pre-existing conditions are usually (but not always) more valuable than cases where the plaintiff suffered pre-existing conditions.

The last factor that affects a case’s value is the clarity of causation. If the defendant can argue that his carelessness did not cause the plaintiff’s injury, the value of the case decreases. For instance, in a motor vehicle accident, if the damage to the vehicles is minimal, the defendant will argue that the impact of the collision was not sufficient to cause serious injury. Likewise, if the plaintiff had a pre-existing condition similar to the injury allegedly caused by the accident, the defendant will argue that he is not responsible for the plaintiff’s injuries. For this reason, defendants review plaintiff’s prior medical records for any indication of a similar complaint before the injury causing incident. A plaintiff is well advised to disclose any pre-existing injuries to the lawyer and all doctors involved in the case, because any discrepancy between what the plaintiff tells the doctors and what is found in the plaintiff’s prior medical records could negatively affect the plaintiff’s credibility and decrease the value of the case.

Jimmy Fasig