How are settlements calculated?
When you’re involved in a personal injury case, one of the key questions on your mind is likely, “How much is my claim worth?” Understanding how settlements are calculated can help you feel more in control during what can be a stressful time. The calculation methods for settlements vary from state to state, and Minnesota has its own specific approach to determining how much compensation you may be entitled to.
In this post, we’ll break down the different methods used to calculate settlements in personal injury cases, with a focus on Minnesota’s approach. We’ll also walk you through a step-by-step guide on how to estimate the value of your claim.
How Settlements Are Calculated in Different States
Each state uses its own methods for calculating settlement amounts in personal injury cases. These methods are often determined by state law or court rulings and take into account various factors such as medical expenses, lost wages, and emotional distress. Let’s take a look at some common calculation methods:
1. The Multiplier Method
The multiplier method is one of the most commonly used methods in many states to calculate non-economic damages, such as pain and suffering. In this approach, the total amount of your economic damages (medical bills, lost income, etc.) is multiplied by a number between 1.5 and 5. The multiplier is chosen based on the severity of your injuries, with more severe injuries resulting in a higher multiplier.
2. The Per Diem Method
The per diem method assigns a specific daily value to the pain and suffering you endure as a result of your injury. This amount is then multiplied by the number of days you’ve experienced pain since the accident. For example, if your daily pain is valued at $100 and you’ve suffered for 200 days, your settlement would include $20,000 for pain and suffering.
3. Comparative Fault
Many states, including Minnesota, use the concept of comparative fault in determining settlements. This means that if you are partially responsible for the accident, your settlement may be reduced by the percentage of your fault. For example, if you are found to be 20% at fault for an accident, your settlement may be reduced by 20%.
How Settlements Are Calculated in Minnesota
In Minnesota, personal injury settlements are calculated using a combination of the methods mentioned above. The state follows a comparative fault rule, which can affect the total amount you receive based on your level of responsibility for the accident.
Minnesota also allows for compensation to be awarded for both economic and non-economic damages. Economic damages cover measurable costs like medical expenses and lost wages, while non-economic damages refer to things like pain and suffering, emotional distress, and loss of enjoyment of life.
A Step-by-Step Guide to Calculating Your Settlement in Minnesota
To get a better sense of how your settlement might be calculated, here’s a step-by-step guide.
Step 1: Calculate Medical Expenses
The first thing that will be considered when calculating your settlement is your medical expenses. This includes:
- Hospital stays
- Surgeries
- Medications
- Physical therapy
- Future medical care costs related to your injury
Be sure to gather all relevant bills and documents that show your medical costs, as these will be central to your claim.
Step 2: Determine Lost Wages
Next, you’ll need to calculate how much income you’ve lost due to your injury. This can include:
- Wages lost from missed workdays
- Reduced earning capacity if your injury affects your ability to perform your job in the future
- Lost opportunities for advancement or bonuses
An experienced Minneapolis personal injury lawyer like Mark Perron can help you determine the full scope of your lost income and ensure it’s properly factored into your settlement.
Step 3: Assess Property Damage
In some personal injury cases, such as car accidents, there may be property damage that needs to be included in your settlement. Make sure to account for the cost of repairs or replacement for damaged items, such as vehicles or other personal property.
Step 4: Consider Non-Economic Damages
Non-economic damages are often more challenging to calculate, but they’re an essential part of a fair settlement. These damages cover the emotional and physical toll of your injury, such as:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of companionship (if applicable)
In Minnesota, non-economic damages are typically calculated using the multiplier method or per diem method, depending on the specifics of your case. Your lawyer can help determine the best approach to valuing these damages.
Step 5: Account for Comparative Fault
As mentioned earlier, Minnesota follows a comparative fault rule. If you are found to be partially at fault for the accident, your settlement will be reduced based on your percentage of fault. For example, if your total damages amount to $100,000 and you are found to be 20% at fault, you would receive $80,000.
Step 6: Consult with a Minneapolis Personal Injury Lawyer
While this guide provides a general overview, calculating the exact value of a personal injury settlement can be complex. Working with a Minneapolis personal injury lawyer like Mark Perron ensures that you’ll have an experienced advocate fighting for your best interests. A skilled lawyer can help you gather the necessary documentation, negotiate with insurance companies, and protect you from accepting a low settlement offer.
How to Ensure You Receive Fair Compensation
It’s important to remember that insurance companies often aim to minimize the amount they pay in settlements. They may offer you a quick settlement that seems like a large sum at first but doesn’t cover the full extent of your damages. To ensure you receive fair compensation:
- Don’t rush to accept the first settlement offer you receive. Take the time to consult with a lawyer and carefully assess whether the offer truly covers your expenses.
- Document everything related to your injury. This includes keeping records of medical bills, missed workdays, and any communication with insurance companies.
- Work with an experienced lawyer who can help you build a strong case and negotiate on your behalf.
Conclusion
Settlements in personal injury cases are calculated based on a combination of economic and non-economic damages, as well as factors like comparative fault. Understanding how these calculations are made can give you a clearer idea of what to expect from your settlement. However, the process can be complex, and working with a Minneapolis personal injury lawyer like Mark Perron is the best way to ensure that your claim is valued accurately and fairly.
If you’re in the middle of a personal injury claim or considering filing one, make sure to get the legal support you need to maximize your compensation.
If you’re looking for a Personal Injury Lawyer in Minneapolis, Perron Law Office is the most trusted name in the Twin Cities area. We proudly serve the communities of Lauderdale, Columbia Heights, Falcon Heights, Robbinsdale, Roseville, Crystal, New Brighton, Richfield, Arden Hills, Fridley. Simply reach out on 651-269-6208 to schedule your free consultation.