California is home to more than its fair share of personal injury claims, the vast majority of which, according to California courts, include car crashes and slip and fall injuries. Workplace injuries involving cuts and lacerations, overexertion, exposure to hazardous chemicals, and repetitive motion injuries are also quite common. These accidents can take a tremendous physical, psychological, and, in many cases, financial toll on individuals who have had the misfortune of experiencing them.
Some of the most common injuries documented in personal injury claims filed in California consist of respiratory disorders, whiplash, back and neck pain, broken bones, and traumatic brain injuries (TBIs). Conditions like anxiety, depression, and post-traumatic stress disorder (PTSD) are also commonly documented in these claims. Data from the National Safety Council shows that the estimated cost of all injuries in California and across the U.S., both work and non-work-related, was over $1.2 billion in 2022.
What Is an Out-of-Court Settlement?
An out-of-court personal injury settlement is a negotiated agreement that enables an injured party to receive financial compensation from the at-fault party or their insurance provider in exchange for releasing any claims related to the accident and not pursuing a traditional court trial. Studies show that 95% of personal injury claims end in a pre-trial settlement. That means only 1 in 20 personal injury cases get argued before a judge or jury in a court of law. Settlements offer several benefits over arguing a personal injury case in court, two of which are quicker resolutions and reduced legal expenses. But it hardly ends there.
Out-of-court personal injury settlements offer more predictability, privacy, and confidentiality than a formal court trial. But just like court judgments, out-of-court settlements are legally binding once they have been agreed upon and formalized in writing. These attributes are usually enough to compel both parties involved in personal injury cases to settle out of court. However, calculating personal injury settlements can be complicated. Settlement amounts also vary depending on the nature and severity of the injury. The average settlement amounts for some of the most common personal injury claims filed in California are as follows:
- Car accident cases - $20,000 to $30,000
- Commercial truck accident cases - $50,000 to $150,000
- Dog bite cases - $30,000 to $100,000
- Motorcycle accident cases - $50,000 to $150,000
- Pedestrian accident cases - $40,000 to $100,000
- Slip and fall cases - $15,000 to $50,000
- Workers' Compensation cases - $5,000 to $20,000
What Goes into Calculating a Personal Injury Settlement Case in California?
Individuals injured in an accident caused by another party's negligence may be eligible to receive economic damages or financial compensation to cover medical expenses, lost wages, and, if applicable, property damage. They may also be eligible to receive non-economic damages, namely compensation for pain and suffering, emotional distress, or loss of consortium. In cases where a defendant's actions are especially egregious, injured individuals in a personal injury case may also be eligible to receive punitive damages. Determining a settlement amount for economic and non-economic damages in a personal injury claim requires a thorough assessment of special, medical, and general damages.
Special damages refer to compensation for loss of income, property damage, and any out-of-pocket expenses related to an injury. As the name might suggest, medical damages refer to immediate and future costs related to hospital stays, doctor visits, surgeries, medications, therapies, and other medical-related expenses. Lastly, general damages refer to the financial compensation for pain and suffering related to an injury. Factors that influence the calculation of general damages include the nature and severity of an injury, the amount of pain resulting from the injury, the length of recovery, and the overall disruption to one's life.
In California, calculating general damages requires using The Multiplier Formula or the Per Diem Method. The first entails totaling the economic costs associated with an individual's injuries, which includes their special and medical damages, and multiplying that total by a determined multiplier ranging from 1.5x to 5x, depending on injury severity. The second involves assigning a dollar amount to each day an individual is in pain or suffering after being injured in an accident and multiplying that daily rate by the number of days that suffering is likely to continue.
According to most personal injury attorneys, the Per Diem Method is ideal for individuals who have suffered injuries that will result in a relatively short recovery period. The Multiplier Formula, meanwhile, is best suited for individuals who have suffered permanent or long-term consequences following an accident. The combined sum of special, medical, and general damages is how attorneys assign a settlement amount in a personal injury case.
California Rules and Regulations That Can Affect the Amount of Damages Individuals May Recover in a Personal Injury Claim
Comparative negligence and damage caps are unique rules and regulations that, along with injury severity, medical expenses, loss of wages, and so on, can influence how much someone can receive in damages following an accident. In California, comparative negligence allows individuals to seek compensation for damages even if they are partly to blame for causing the accident. However, any damages they might be eligible to receive are proportionally lowered based on their degree of fault in causing the accident. Damage caps apply to only medical malpractice personal injury claims. Under California law, the damage cap on medical malpractice damages is $430,000 for malpractice-related injuries not involving wrongful death and $600,000 for medical malpractice resulting in wrongful death.
In summary, many things go into calculating settlements and broader damages following a personal injury claim in California. Because of that, it is best to hire an experienced and licensed personal injury attorney to ensure you get the compensation you deserve.
