What is my case worth? This is a questions that we get daily through free consultations, online questions, texts through our firm's App from clients, and general inquiries.
First, we need to understand how cases are valued. If you were to total up all benefits - from temporary disability, to medical care, to permanent disability, to future medical care, to vocational schooling - it could add up to quite a lot. But that's not money directly in your pocket. So when someone asks us "what is my case worth" or what their case valuation in, what they are typically asking is "how much money will I get in settlement?"
To answer how much you will get in settlement first requires that we discuss the two types of settlement. One is called a Stipulation & (Request for) Award, one is called a Compromise & Release. Here are the basics of each:
- Stipulations With Request for Award (or Findings & Award, if given after trial): This is a document where parties stipulate to temporary disability periods paid, an amount of permanent disability (which is a percent number worth a certain amount of money for a certain amount of weeks), and the need for future medical care. In most cases this means that the person gets a payment of Permanent Disability, minus attorney fees, at somewhere around $290 per week for a certain amount of weeks until paid out. Future medical care is left open, and the person can continue to get medical care for body parts injured at work for the rest of their life - they just have to go through the workers compensation doctors and network.
- Note that this is the ONLY required settlement, and the only one that a Judge can order if you go to trial
- This is most common either when people return to work, or when they simply want to have continued coverage through work comp for future medical care
- Example: Settlement of Lumbar spine for 15% Permanent Disability and open future medical care. This would mean payment of $290 per week for 50.5 weeks, or $14,645 total minus any attorney fees and minus any permanent disability advances
- Compromise & Release: This settlement is completely optional for both sides (neither has to offer or accept, it can never be ordered by Judge), but it is fairly common because both sides want to settle out the case for a lump sum. This is most often a combination of both the permanent disability (same as calculated above), along with a present value lump sum buyout of future medical care. We calculate future medical care by looking at doctors reports, estimating the care needed over the person's life expectancy, and then applying a present value calculation at 2-3% per year for insurance paying out a lump sum immediately vs. paying it out over the rest of the person's life. This could mean that the $50,000 that is estimated to be paid out in medical bills over the rest of your life is worth $20,000-$30,000 right now as a lump sum that can be invested.
- Note that these almost always require a voluntary resignation! So often not available if you return to work, although they can be negotiated at any time even years later
- Example: Settlement of entire case by C&R for the 15% Permanent Disability above ($14,645) plus $20,000 in future medical care lump sum. For a total of $34,645 minus any attorney fees and minus any permanent disability advances
There are other things that need consideration, such as whether you are able to save that lump sum and actually put it towards medical care. Because once paid out, work comp will not cover treatment and you must pay out of pocket. Often private insurance will also not cover treatment if they know you have/had a work comp case. In addition, consider that treatment outside of workers compensation network is less of a headache with approvals/denials, it is faster, and it is often with better doctors. The tradeoff is often that it is more expensive, since workers compensation has a Official Medical Fee Schedule that is only 20% above Medicare, and very few doctor offices are willing to take such low rates.
Finally, there could be other benefits as part of settlement that may apply to your case. Retroactively owed temporary disability, out of pocket expenses, mileage, supplemental job displacement vouchers (which can be used to get an extra $5,000 from the state), or other items may be needed depending on your case and the issues. It's best to go over all of this with your attorney to make sure you are paid every single benefit that is owed. If you have questions or concerns about case value or settlement, contact us at www.InjuryCompLaw.com or call 888-OMG-OUCH for a free consultation with a partner!
