Questions regarding the settlement value and demand figure for a personal injury claim
Many factors are taken into account in determining the value of a potential value of a personal injury claim, determining an initial demand figure to begin settlement negotiations. A few of the most common questions include:
Who determines the settlement value of my case?
The attorneys at The Law Offices of Marc L. Shapiro, P.A. have a great deal of experience in the area of personal injury law. After evaluating all of the factors of the case, one of the lawyers in our firm will discuss the case with you to arrive at a possible settlement range. Once you have agreed upon a general settlement range, one of the attorneys in our firm will present a demand to the insurance company within the range determined. It is important to know that you have the ultimate decision to make, but, because of your lawyer’s experience in this area of law, you should seriously and carefully consider any recommendation he or she makes as to the ultimate value of your case.
Will the insurance carrier pay the demand figure in my attorney’s request for settlement?
In almost every case, the final demand figure issued by your attorney in the first letter requesting settlement is substantially higher than the actual settlement range. This is a common negotiation tactic for personal injury cases.
Because of your attorney’s experience in this area of law, a request for settlement will usually be made in an amount that gives both parties a fair amount of room to negotiate. Therefore, do not consider the demand figure to be the actual settlement range of your case.
Because the insurance company will undercut my attorney’s request/or settlement, why not request a very large sum to begin with?
Many people believe that because the carrier will come back with a lower figure than the demand, the attorney for the injured person should request a very high figure to begin with. Such a process never works. If the first demand figure is way out of line, most insurance companies will not even respond to the request for settlement. Asking for a high figure for settlement that is ridiculous will often delay the process and sometimes will make the insurance company refuse to make any offer at all. Therefore, it is important that the first demand be reasonable at least. Because your lawyer is experienced in this area of law, he will have the best idea as to the amount for the first demand figure.