Trial or Settlement

CALCULATIONS OF TRIAL VS SETTLEMENT

1. LIABILITY COVERAGE (Defendant's insurance coverage) is $30,000

2. Insurance adjuster has OFFERED $15,000 to settle the case.

3. Likelihood that Plaintiff will be assessed 5% of FAULT by both adjuster and jury.

4. Plaintiff has been paid the following COLLATERAL SOURCES

HEALTH INSURANCE $ 1,200

WORK COMP/DISABILITY $ 1,000

NO-FAULT BENEFITS $ 5,000

TOTAL COLLATERAL BENEFITS PAID $ 7,200

5. CASE EXPENSES:

CASE EXPENSES BEFORE LITIGATION $ 800

CASE EXPENSES AFTER TRIAL $ 5,000

B. VERDICT: Apply the above assumptions to a jury verdict of $30,000

5% comparative fault -$ 1,500

Collateral sources deducted -$ 7,200

Attorney's fees 1/3 (based on $30,000 - $1,500 -$ 7,200 = $21,300) = $7,099

Case expenses -$ 5,000

NET TO PLAINTIFF: $ 9,200

C. SETTLEMENT: Apply the same assumptions to a settlement of $15,000:

Attorney's fees 1/3 (based on $15,000) = $ 5,000

Health Insurance Payments -$ 1,200

Workers comp payments -$ 1,000

Case expenses -$ 800

NET TO PLAINTIFF $ 7,000

In the case of settlement, Plaintiff does not have to deduct any collateral sources from the settlement. However, health insurance payments and worker comp payments must be reimbursed so they are deducted anyway. Plaintiff receives almost as much as she/he would at trial with out the risks and without the 5% deduction of comparative fault or the deduction for No-fault benefits of $5,000.