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From the firm

Are Personal Injury Settlements Really Out of Control?

Large personal injury settlements often receive significant public attention, which can create the impression that substantial awards are common. In reality, every personal injury matter is different, and settlements or verdicts depend on the specific facts, documented losses, applicable law, and other circumstances.

In personal injury cases, damages may address losses such as medical expenses, lost income, property damage, and other qualifying impacts. Cornell Law School’s Legal Information Institute provides additional background on how damages in civil cases are generally evaluated.

Individuals with questions about an accident can also learn more about Salomon & Aquino’s Personal Injury legal services.

Understanding Personal Injury Settlements and Damages

A personal injury settlement is generally intended to resolve a legal claim without requiring the matter to proceed through a complete trial. The value of a particular claim can depend on many factors, including the circumstances of the incident and the losses supported by the available evidence.

Compensatory damages are generally designed to address proven losses. Depending on the circumstances, these may include medical costs, lost wages, property damage, and certain other losses. Cornell Law School explains compensatory damages and their role in civil cases.

Large awards reported in the media may involve circumstances that are very different from those present in a typical personal injury matter.

The McDonald’s Hot Coffee Case

One frequently cited example is Liebeck v. McDonald’s Restaurants, commonly known as the McDonald’s hot coffee case.

The case involved Stella Liebeck, who suffered serious burns after hot coffee spilled while she was a passenger in a parked vehicle. Evidence presented during the case addressed the temperature at which the coffee was served and previous complaints involving similar incidents.

The jury awarded compensatory damages and a substantially larger punitive damages award. The compensatory amount was reduced based on the jury’s allocation of comparative fault, and the punitive award was later reduced by the trial court before the parties ultimately reached a confidential settlement.

The Legal Information Institute’s summary of Liebeck v. McDonald’s Restaurants provides additional context about the facts and outcome of the case.

Why the Case Still Matters

The McDonald’s case is often discussed in debates about personal injury litigation because the widely reported verdict did not always include the full factual background of the case.

It also illustrates an important distinction between compensatory damages and punitive damages. Punitive damages are separate from compensation for actual losses and may be considered only under particular circumstances involving certain types of conduct. Learn more through Cornell Law School’s overview of punitive damages.

Every Personal Injury Matter Is Different

There is no standard settlement amount that applies to every personal injury case. The circumstances of the accident, available evidence, documented losses, insurance coverage, and applicable law can all affect how a matter is evaluated.

For that reason, comparing one personal injury settlement with another may provide limited insight into what may apply in a different situation.

Speak With a Personal Injury Lawyer in Paterson, NJ

If you have questions following an accident, Salomon & Aquino, LLC provides legal guidance for individuals seeking to better understand their available options.

Learn more about our Personal Injury practice or contact our Paterson office to schedule a consultation.

Call 862-418-1336 for additional information.