What Is the Average Personal Injury Settlement?

Personal injury cases of all types dominate many aspects of the legal scene. Billions of dollars are traded annually through settlements and judgments obtained in personal injury cases. The value of settlements range from relatively small payments to settlements of tens of millions of dollars. Considering the average of personal injury settlements is a task that requires the consideration of a variety of factors.

Types

One of the factors that plays into personal injury settlements is the type of injury and damage sustained. The most common types of personal-injury accidents (in order of their prevalence) are traffic, work-related, trip and fall, assaults, accidents at home, product defects and medical malpractice. Anyone of these types of accidents can result in injuries that range from nominal to catastrophic. The severity of the injuries dictates the level of monetary settlement that will be reached. A person who has been the victim of medical malpractice, for example, can end up receiving a settlement that reaches into the millions of dollars.

Actual Damages

There are two types of damages that can be included in a personal injury settlement or judgment: actual and punitive. In reality, punitive damages often are not included in a settlement of a personal injury case but are more likely to be ordered after a trial. Actual damages consist of a monetary settlement designed to financially compensate an injured person for the injuries she endured as a result of negligence. These types of damages include: medical expenses, lost wages and pain and suffering.

Punitive Damages

Through the years, punitive damages elevated the average of personal injury awards. Punitive damages are additional damages in a particular case that arise out of a determination that the conduct that gave rise to the injuries was particularly negligent or egregious. The theory is that the person or entity that caused these injuries deserves to be punished beyond paying actual damages as a result of their conduct.

Structured Settlement

Structured settlements affect the average of personal injury settlements. Through a structured settlement, an injured person receives the agreed to (or court ordered) compensation for injuries and damages over a period of time rather than in a lump sum. The actual value of a structured settlement needs to be analyzed in order to see how it affects the overall average amount of personal injury settlements.

Geography

Another factor that effects the average of personal injury settlements is geography. The location of an injured person in the country will dictate the amount she likely will be able to obtain in the way of a personal injury settlement. Some areas are known for higher settlements while other regions have garnered reputations for smaller settlements.

Confidential Settlement Agreements

The large number of settlement agreements that are confidential effects the ability to determine concisely average personal injury settlements. These settlement agreements contain provisions that demand that no party disclose its terms. If the terms are disclosed, the party who takes such a step is in breach of the settlement and faces severe sanctions.

Averages

Personal injury settlement averages are compartmentalized based on the type of case, taking into consideration the factors analyzed in this article. Medical malpractice cases consistently render the most significant settlements in the universe of personal injury cases. The average settlement in a medical malpractice case is about $340,000. Traffic accidents, the most common cause of personal injury cases, have a mid-range settlement average when contrasting personal injury cases overall. The settlement average for all traffic accident cases that occur annually is about $24,000. Slip-and-fall cases tend to have the lowest settlement average at abouty $2,000, which often represents settlements reached for the so-called nuisance value of the claim). If you have suffered a personal injury, you need to understand that the settlement value of your own case depends upon an analysis of the set of facts and circumstances that surround your accident.

References

• American Trial Lawyers Association, Personal Injury Overview
• Executive Summary, Medical Malpractice
• National Law Journal, Verdict Search

Resources

• American Bar Association, Section of Litigation