Percentage of Settlements for Personal Injury Cases
In some personal injury settlements, an injury attorney will take a small percentage of the total amount. In other settlements, the lawyer is simply paid a standard amount of attorney’s fees. This arrangement depends entirely on the agreement between the attorney and the client.
One increasingly popular form of settlement distribution, though, occurs through a structured settlement plan. In this scenario, a winning party collects damages over the period of several months, instead of receiving it all in one lump sum.
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Structured Settlements in Personal Injury Cases
If an injured person wins a personal injury case, which may result from claims as diverse as a car lawsuit or a medical malpractice claim, the personal injury settlement may be structured so that the winning party receives a percentage of the settlement for several months.
Traditionally, parties that won personal injury settlements received their damages in a single lump sum, but structured settlements have become more popular since their creation in the 1980s.
Here are some of the benefits of a structured settlement:
- Future protection. Payments received later in time provide a cushion for unexpected medical bills arising from the original injury.
- Education expenses. If the injured party plans to receive further education, steady payments over the period of a few years may be beneficial.
- Tax benefits. These vary case by case, but the tax code may favor structured settlements over lump sum payments.
By receiving a percentage of the overall injury settlement each month, winning parties can stretch their compensation over a period of several years.
Winning a Percentage Settlement for Personal Injury
Of course, before you reach settlement negotiations (if you do), you and your attorney will have to put in a lot of effort into proving your case.
Keep in mind, though, that people seek personal injury settlements for a vast range of different injuries, including:
- Auto accidents
- Slip and fall injuries
- On-the-job injuries
- Police brutality
- Sexual assault
To learn more about how settlements work in personal injury cases, and who may receive a percentage of that settlement, contact an injury attorney today.