How Do You Calculate Settlement Amount?

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April 15, 2025

Blog conteWhen someone suffers harm because of someone else’s actions—or inaction—money alone doesn’t make things right. But compensation through a legal settlement can ease the financial pressure and offer a measure of justice. That said, figuring out how much a claim is actually worth isn’t as simple as plugging numbers into a calculator. Every case is different, and the process involves a mix of hard data, experience, and negotiation.

Here’s a closer look at how settlement amounts are calculated, what goes into that decision, and how a Minneapolis personal injury lawyer like Mark Perron at Perron Law Office helps clients get a fair deal.

The Two Main Categories of Damages

When lawyers talk about damages, they usually split them into two types: economic and non-economic. Each plays a big role in the overall value of your case.

Economic Damages: The Concrete Costs

These are the straightforward, out-of-pocket losses tied to the injury or death. They include:

Medical expenses (both past and future)
Lost wages if you couldn’t work during recovery
Loss of earning capacity if your ability to work has been permanently affected
Funeral and burial costs in wrongful death cases
Property damage if relevant (e.g., in a car crash)

These amounts are easier to prove because they come with receipts, bills, and employment records. They often form the base of a settlement calculation.

Non-Economic Damages: The Human Cost

This is where things get more complicated. Non-economic damages are about the pain, disruption, and emotional toll that don’t come with a clear price tag:

Pain and suffering
Emotional distress
Loss of enjoyment of life
Loss of companionship or consortium (especially in wrongful death cases)

While you can’t put a price on grief or trauma, the law still recognizes these as very real losses—and they can add significantly to a settlement total.

How Insurance Companies Estimate Value

Most settlements are paid out by insurance companies. Whether it’s a car insurer or a hospital’s liability carrier, their job is to minimise payouts—not maximise fairness. That’s why they often start by using formulas to calculate what your case is worth.

A common method involves applying a multiplier to your economic damages. For example, if your medical bills and lost wages total $50,000 and you had a long, painful recovery, they might use a multiplier of 2 or 3 to account for pain and suffering—bringing the total to $100,000–$150,000.

But here’s the catch: the insurance company might choose a lower multiplier than what’s actually fair. They’ll downplay your pain, question your treatment, or argue about what’s “reasonable.”

That’s where experienced negotiation comes in.

The Role of Fault and Liability

Even if the numbers look good on paper, your settlement depends on being able to prove the other party was at fault. Minnesota uses a system called modified comparative negligence, which means:

You can still recover damages if you’re partly at fault.
But your compensation gets reduced by your percentage of fault.
If you’re found to be more than 50% responsible, you get nothing.

So if you’re awarded $100,000 but are found 20% at fault, you’d receive $80,000.

A solid Minneapolis personal injury lawyer will work to keep your percentage of fault as low as possible—or eliminate it altogether.

Future Losses and Long-Term Impact

In serious injury or wrongful death cases, a big chunk of the settlement might be for future costs. This includes things like:

Ongoing medical care or therapy
The impact on future earnings
Support for children or dependents
Permanent disability or disfigurement

These are harder to calculate because they require projecting years into the future. Lawyers often bring in experts—like economists, doctors, or life-care planners—to paint an accurate picture of what the client will need.

This is one reason people working with experienced legal counsel tend to receive higher settlements than those who go it alone.

How Minnesota Law Affects Settlements

Minnesota doesn’t impose caps on damages in most personal injury or wrongful death cases. That means there’s no legal limit on what you can recover for pain and suffering or emotional losses—at least not by statute. But that doesn’t mean it’s a free-for-all.

Insurance policies, court trends, and the strength of your evidence still shape what kind of settlement you’re likely to get.

Also important: Minnesota has a statute of limitations. For most personal injury claims, it’s two years. For wrongful death, it’s three. Miss that deadline, and you may not be able to file at all.

How a Lawyer Helps Maximise Your Settlement

If you’re trying to figure out what your case is worth, it helps to talk to someone who’s done this before. A good personal injury or wrongful death attorney will:

Carefully document all your losses, including long-term needs
Consult with experts to support your claim
Build a persuasive case to pressure the insurance company
Negotiate for a higher offer—or take the case to court if needed

Mark Perron at Perron Law Office has built his career doing just that. With a deep understanding of Minnesota law and a reputation for standing up for families, he helps clients get the compensation they need—not just the offer insurers hope you’ll accept.

A Realistic View of Settlement Ranges

So, how much is a case worth in dollar terms?

It depends.

Minor injuries might settle for $15,000–$50,000
Moderate injuries or limited wrongful death claims could range from $50,000–$250,000
Severe or permanent injuries, or complex wrongful death cases, often exceed $500,000 and can go into the millions

But averages don’t tell the whole story. Every case is unique. The best way to get a realistic estimate is to speak with a Minneapolis medical malpractice lawyer who knows how to weigh the facts.

Final Thoughts: Let’s Talk About What Your Case Is Worth

Don’t guess at what your claim might be worth—and don’t accept the first offer that comes your way. You deserve a full, fair settlement that reflects everything you’ve been through and everything you’ve lost.

If you’re navigating a wrongful death claim or serious injury, call Perron Law Office today. Mark Perron is here to guide you with honesty, care, and experience—every step of the way.nt

If you’re looking for a Personal Injury Lawyer in Minneapolis, Perron Law Office is the most trusted name in the Twin Cities area. Simply reach out on (651) 317-8133 to schedule your free consultation.