You might be wondering how much you will receive in a personal injury settlement. What matters most, however, is how money ultimately goes into your pocket. To estimate how much money you will actually see, you need to consider damages, limiting factors, and deductions.
Types of Damages
Missouri personal injury law offers three kinds of damages: economic, non-economic, and punitive.
Any loss that is easy to count likely constitutes economic damages–medical expenses, lost earnings, child care expenses you incur while recovering from your injuries, etc. The challenge here is to prove every penny of your losses. Keep receipts for everything.
Non-economic damages represent compensation for intangible harms that you suffered—physical pain, emotional distress, loss of enjoyment of life, etc. Many people are surprised to learn that non-economic damages are typically worth 1.5 to 5 times as much as economic damages. Because of the intangible nature of non-economic damages, it can be difficult to prove their full value without the aid of a lawyer.
Punitive damages only apply when the defendant’s conduct is outrageous or shocking. The purpose of punitive damages is to punish the defendant, not to compensate you.
Limiting Factors
Some factors that may limit your recovery are insurance coverage limitations and comparative fault.
Since most defendants cannot afford to pay the full value of a personal injury claim, victims typically rely on insurance companies to make them whole. No insurance company, however, will pay a penny more than their policy limits. You should contact a skilled attorney to help you deal with the insurance companies and make sure they offer you what you deserve.
Another factor that might limit your recovery is comparative fault. Missouri’s ‘pure’ comparative fault law kicks in if the defendant proves that you were partly responsible for the accident. The court will assign you a percentage of fault between 1% and 99%.
Pure comparative fault is one of the most liberal approaches to contributory fault. As long as you are not 100% responsible for your accident, you can still recover from the defendant.
Deductions
There are several deductions that come out of your settlement before you even receive it. These include:
- Attorney’s fees: Personal injury lawyers almost always charge based on the contingency fee system. That means the lawyer takes a pre-agreed percentage of whatever amount you recover. And if you recover nothing, your lawyer works for free.
Missouri imposes no statutory cap on contingency fees, although there are ethical guidelines. Most lawyers charge in the range of 30% to 40% of the client’s total recovery.
- Case expenses: It takes funding to investigate and prove a claim. You’ll have to pay to copy medical records, pay an expert witness, or pay an investigator, for example. Your lawyer may (or may not) agree to pay these amounts upfront. If they do, they will deduct them from your settlement check if you win the case.
- Medical liens: Your healthcare provider might have placed a lien on your settlement proceeds to secure payment of your medical bills. If so, you will have to pay off the medical lien before you see your settlement funds.
- Subrogation: If your health insurance company paid part of your medical bills from, say, a traffic accident, they will want reimbursement from the amount that the defendant’s auto liability insurance company pays you for your claim. This is called subrogation.
- Taxes: Your taxes on a personal injury settlement will be almost insignificant unless you win punitive damages. The IRS taxes punitive damages as ordinary income. It is best to consult an attorney to get an idea of what taxes might be taken out of your settlement.
How are Personal Injury Settlements Paid Out?
The defendant (or, more likely, the insurance company) will transfer the settlement amount to your lawyer’s IOLTA account. This transfer might take a few weeks if you’re dealing with a large insurance company. Once the lawyer receives the settlement, they will deduct any applicable amounts, including their legal fees, from your settlement. They will then transfer the remaining funds to you.
Contact a St. Louis Personal Injury Lawyer at Roach Law Car Accident Lawyers Immediately If You Have a Claim
Don’t wait to start investigating your Missouri personal injury claim. Contact an experienced St. Louis personal injury lawyer with Roach Law as soon as possible to discuss your claim and explore your options. The earlier you get started, the better the odds you will win all the compensation you deserve.
For more information, contact the attorneys at Roach Law Car Accident Lawyers we proudly serve all throughout Missouri, including St. Louis County, and we have offices in St. Louis, Chesterfield, Clayton, and Creve Coeur.
Roach Law Car Accident Lawyers – St. Louis Office
1010 Market Street, Suite 1605
St. Louis, Missouri
(636) 519-0085
Roach Law Car Accident Lawyers – Chesterfield Office
400 Chesterfield Center Suite 400
Chesterfield, MO 63017
(636) 999-9587
Roach Law Car Accident Lawyers – Creve Coeur Office
11628 Old Ballas Rd, Suite 320
Creve Coeur, MO 63141
(314) 557-2869
Roach Law Car Accident Lawyers – Clayton Office
7733 Forsyth Blvd, Suite 1100
Clayton, MO 63105
(314) 804-4569
