Awards & Settlements
Iowa Lawsuit Claims For Injuries
There are only two ways to receive payments from insurance companies: if they do so voluntarily (a settlement), or if we take them to trial and beat them and they are ordered to pay (an award). While it may seem like a situation of six of one, half dozen of the other, it really is not. In fact, the distinctions are very significant and can have an important impact on how a claim is litigated, and whether or not an injured Iowan should resolve his case. Accordingly, the following considerations are important to note with respect to awards and settlements.
Timing
First and foremost, the timing of settlements and awards can very greatly. A settlement can be reached at any time following an injury occurring as a result of a car accident. It should be certainly noted that an insurance company is never going to pay top dollar on a claim within days of an accident unless the injuries are extraordinarily minor. However, in some instances and based upon an individual’s goals, it may be appropriate to settle a case even for less than top dollar if payment can be received much sooner as a result of not needing to wait for a trial.
For example, if an insurance company offered a reasonable amount prior to filing a lawsuit, in some instances it may be advisable for a Plaintiff to resolve the case for such sum as opposed to waiting 18 months or more for the chance to receive more given that the claimant might also receive less.
On the other hand, a plaintiff in an automobile accident case is likely looking at upwards of 18 months before a case is submitted to a jury, although the exact amount of time varies widely based upon the jurisdiction and circumstances of the case. Accordingly, all things being equal including the amount received, (which they are certainly not) it would be better to settle the matter than wait for an award from a jury.
Amount
If we knew the answer to this, we never would have to wait - most of this wouldn’t be an issue. Obviously, if you have an amount on the table or, in other words, your experienced auto accident attorney has gotten the insurance company to offer their absolute top dollar, you know exactly how much you can have at that point. On the other hand, if the matter is submitted to a jury, no matter how well-presented the case, you never know for sure what a jury is going to award, if any at all. So the difference here is risk.
In some instances it may be worthwhile to a claimant to risk an amount of money that has been offered for the chance to receive significantly more. On the other hand some folks believe that a bird in the hand is worth two in the bush, and as long as an offer is in the ball park, it is worth getting the matter resolved.
Control
Another strength of the settlement is that it gives you some control over the payment including when it is received and how it is structured. For example, awards for compensatory damages like medical bills can have much different tax treatment than awards for lost wages. When settling a case, what damages an insurance company agrees to pay for can be negotiated just like the amount. When a case is submitted to a jury, whatever they award is how it will be structured. So while taxes must be filed and paid appropriately, sometimes a settlement might have better tax implications than does an award. (For a complete discussion on tax implications of awards, please refer to Taxes, Awards & Settlements).
Also, should you take a case to trial and receive a verdict, that decision can be appealed in certain instances. Accordingly, you might be looking at another 1 to 2 years or even longer depending upon the extent of the appeal process. Settlements on the other hand are not appealed and as such are once again much less risky. Having a control over the settlement process can be a big benefit depending on the circumstances and may or may not encourage someone to avoid the risk of trial.
Upside Potential
One big reason to take a case to trial is for the opportunity of a big jury verdict. You have probably read about extraordinary sums of money that people have won by going to trial. While these are certainly dramatized by the media, they do happen. They do NOT happen nearly as often as most people tend to think. Only the most extraordinary verdicts are generally reported upon, and as such people tend to think that juries are more generous than they tend to be in reality.
However, like many investments, trials are high risk and can be high reward. And I can guarantee you that an insurance company has never paid way more than what they think a claim is worth just to be nice! For those who can afford to take the risk or who merely want the opportunity to have their case heard, trial is worth the time and expense.
Time and Expense
Trials are difficult. They are trying physically and emotionally. They can include personal and character attacks by opposing counsel on you and your friends and family. While competent counsel can mitigate some of these issues, they cannot be prevented entirely in all cases. And even the simplest of trials requires a lot of time and money during preparation. The toll that trials can take is not worth the potential reward for some.
Similarities
For all of their practical differences, settlements and awards are both, in their simplest form payment from an insurance company. Accordingly they also have similarities. Both will terminate any additional or further causes of action against the same person or company for the same claim. They also both generally terminate the litigation process, unless some type of appeal is filed as is set forth above. So once you receive your money, the process is substantially concluded.
Settlement or Trial?
Ultimately, there is no right answer for whether to settle a case, or take it to trial. Most importantly, you need to have an attorney that is adept at negotiating favorable settlements. But it is also imperative that you have an attorney that is willing to and does take cases to trial on a regular basis. If not, something as seemingly meaningless as your attorneys reputation with an insurance company or defense firm could compromise the value of your claim! Accordingly, the best solution is to sit down with your experienced car accident attorney and determine the best course of action for your individual claim.
See also: Future Disability Compensated
GRL Law's Legal Team
The impeccable reputations and proven trial records of the injury attorneys at Gourley, Rehkemper & Lindholm are well known to the insurance industry, which often causes insurance companies to make very favorable settlement offers rather than risk the chance of taking the case to a trial at which GRL Law's lawyers might prevail.
Gourley, Rehkemper & Lindholm's attorneys are available on call at 1-866-743-6652 24 hours a day for emergency situations. You can also ASK AN ATTORNEY at GRL Law about your case, and send information to the attorneys online so that they have it ready when you call.
wrongful death award
On Thursday, June 30th, 2011, the attorneys at Grouley, Rehkemper & Lindholm won a very favorable outcome for their client, the plaintiffs in a wrongful death lawsuit.
A Southern District of Iowa jury returned a verdict in favor of the Plaintiffs for more than $4,000,000.00 (four million dollars). The lawsuit arose out of a semi vs. car accident occurring in Mount Pleasant, Iowa, on February 20, 2008.
Plaintiffs, Two Rivers Bank and Trust, as Conservator for K.H., a Minor, Kala Holtkamp, Tia Hamm, Individually and as Executor of the Estate of Christopher D. Davis, and Nicholas Finely, alleged that defendant, Vanya Atanasova was negligent in the operation of her semi truck and that defendant, Venture One, Inc., as owner of the semi truck, was responsible for her negligence. Plaintiffs proved that just minutes prior to the accident, defendant Atanasova illegally pulled her semi over and stopped on the shoulder of Highway 218. Immediately before the accident, Attanasova pulled out off of the shoulder and in front of the vehicle being driven by Kala Holtkamp who could not avoid the semi in time. The Holtkamp vehicle struck the rear of the semi, killing front seat passenger Christopher Davis, seriously injuring back seat passenger, 2 year old, K.H., and also injuring Kala Holtkamp.
The jury found that Kala Holtkamp should be compensated $400,915.76; K.H., $3,190,852.40; The Estate of Christopher Davis, $71,371.59; Tia Hamm, $400,000; and Nicholas Finley, $25,000. Defendants were found to be 90% at fault and Kala Holtkamp was found to only be 10% at fault.
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