The Settlement Alliance

Determining Case Value: Three Factors to Consider

Determining Case Value: Three Factors to Consider

Mar 29, 2018

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When working with a new client, the plaintiff attorney must consider whether to go to trial or to resolve the case at mediation. A settlement planner can assist in making an informed estimate of the case value up front, saving the law firm valuable time and money, while also creating a reasonable demand and promoting realistic expectations for the plaintiff.

Here are 3 of the top factors a settlement planner will examine to determine the case value:

#1- Cost of Care: The settlement planner may recommend having a Life Care Plan (LCP) drawn up for the claimant. The LCP provides a comprehensive projection of the claimant’s expected cost of medical, physical, and psychological care. Costs may include but are not limited to items such as medical equipment, prosthetics, prescription medications, in-home or facility-based care, physical therapy, home modifications to accommodate the claimant’s disability, and specialized transportation equipment. Even if a formal LCP is not completed, the settlement planner can still work with the claimant to determine an anticipated cost of care.

#2- Loss of Earnings Projections: In some instances, it is possible to determine a claimant’s projected loss of earnings. Factors including the extent of the injury, education level, and job industry may provide a solid calculation of what the injury will cost the claimant over their working lifetime. Even in the case of a claimant who does not file a W-2 –a minor, for instance—there may be a way to determine loss of earnings. However, if the injury does not prohibit mobility or mental capacity, there may not be a predictable loss of income.

#3- Applicable Damage Caps: Many states, such as California, Maine, and Texas have damage caps that limit the recovery for certain types of cases. Some states, such as Idaho and North Carolina, have caps set to adjust annually based on inflation, while other states, such as New York and Arizona, have no damage caps. Staying up-to-date on any applicable caps for economic and non-economic damages can help provide the claimant with reasonable expectations up front.

Contact The Settlement Alliance today

Our planners provide comprehensive settlement planning services for law firms across the nation. Contact us today at 800-464-2500 or info@settlement-alliance.com to learn more.

Categories: Settlement Planning

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  • American general Life Companies
  • Berkshire Hathaway Structured Settlements
  • MetLife
  • Mutual of Omaha
  • New York Life
  • Pacific Life
  • Prudential