You may be wondering how personal injury settlements are calculated or how much you can expect from your case. Texas law recognizes several types of personal injury damages to help you recover financially and physically from your injuries. Understanding how these damages are calculated can help you pursue the fair amount you deserve.
If someone else’s actions injured you, you may be entitled to a personal injury settlement. Work with a Texas personal injury lawyer to learn more about how these settlements are calculated.
What Affects Personal Injury Settlements
Several factors can affect the amount of a personal injury settlement. Understanding how your settlement value is calculated can help you better understand the potential value of your claim. Here are some key things that can impact your settlement:
- The severity of your physical injuries
- The extent of emotional trauma, including psychological injuries such as reoccurring anxiety, depression, and post-traumatic stress disorder (PTSD)
- How much your medical expenses were or continue to be
- Any lost paychecks or impact on future earning capacity
- Property damaged in the accident
- The degree of fault or negligence of the at-fault party
- Evidence and strength of your claim
- Insurance coverage of the at-fault party’s policy
Negotiation tactics and knowledge of the laws and regulations guiding personal injury settlement calculations may also significantly affect the amount you are able to get. Working with an experienced personal injury lawyer can help you understand how to maximize your claim. They will help you build a strong claim on evidence showing the fault of the responsible party and calculating the total damages you have incurred.
Compensatory Damages under Texas Law
Compensatory damages are designed to financially compensate an injured party for the losses from an accident or injury. In Texas, personal injury law categorizes these damages into two primary types: special damages and general damages. Understanding these will help you understand how personal injury settlements are calculated.
Special Damages: Tangible Losses
Also referred to as economic damages, special damages are quantifiable financial losses directly resulting from your personal injury. These damages can be easily tabulated and documented based on the receipts and medical bills you have received. Common examples of special damages include:
- Medical expenses
- Lost wages and earning capacity
- Property damages
- Funeral expenses
- Future damages, including ongoing medical treatments, etc
General Damages: Intangible Losses
Also referred to as non-economic damages, general damages are more subjective and compensate for losses that are difficult to quantify. These damages are awarded to compensate for the pain, suffering, and emotional distress the injury caused you. The two main ways these damages are calculated are by:
- Multiplier Method: This method multiplies your special damages by a multiplier between 1.5 and 5 based on the severity of your injuries and other factors.
- Per Diem Method: This method assigns a daily dollar amount representing the cost of living with the injury and the days it took to recover. If you are still recovering or have a lifelong disability, they will calculate it based on your life expectancy.
How Liability Will Affect a Personal Injury Settlement Calculation
If you share some of the liability in your personal injury incident, this could affect the calculation of your personal injury settlement. Texas uses a Modified Comparative Negligence System under Texas Civil Practice & Remedy Code § 33.001. This means that if more than one person is liable in the accident, each defendant will be assigned a percentage of responsibility and held responsible for their percentage of fault.
Under this law, a personal injury victim may still receive compensation provided their share of fault in the accident does not exceed 50%. If the victim is found partially at fault but less than 50%, their financial award will be reduced accordingly.
This means if your personal injury settlement is determined at $100,000 and you are 20% responsible for your accident, you will receive only $80,000 in your payout.
Liability and the amount of negligence the at-fault party has shown will also weigh into your personal injury settlement calculation. The more your personal injury attorney can build a strong case of evidence, the greater the likelihood of being granted the amount you seek.
Your settlement amount is based on the unique details of your personal injury claim, so please check out our FAQs if you have further questions or contact us for personalized answers and advice.
How Personal Injury Settlements Are Received
Damages are most often paid out through direct negotiation with the liable party or their insurance company. A settlement can be reached at any point in the legal process, even if a case goes to trial. In fact, an insurance company may be more likely to settle for your requested amount rather than go to trial, which can be very expensive for them.
Once an agreement is reached, you will sign a release and receive a check from the liable party’s insurance. Your settlement may be a lump sum or a structured payment plan, depending on various circumstances.
The insurance company may also send the payment to an escrow account, which will distribute funds for attorney fees, medical expenses, and other bills, with any remaining funds being sent to you after those payments are made.
If you choose to work with a lawyer, your check may be sent directly to them, depending on your fee agreement. Many personal injury lawyers, like ours, work on a contingency fee basis, meaning you will not pay anything unless the case is settled.
Then, those fees, typically a percentage of your final personal injury settlement amount, will be deducted from the lump sum, with the rest of the settlement being yours to do with as you will.
Contact Lowe Law to Calculate Your Potential Personal Injury Settlement Amount
At Lowe Law, we have recovered over $10 million for clients like you. Learn more about us and how we provide quality representation for injury victims. Contact us today to set up a free case consultation and learn more about how we calculate your potential personal injury settlement.
