How Do You Calculate a Wrongful Death Settlement?

Who Gets the Money in Wrongful Death Lawsuits?

In Nevada, the victim’s surviving family members or a representative of the deceased person’s estate are eligible to file a wrongful death claim. The surviving spouse, domestic partner, or children are considered the “intestate heirs” and can bring a legal wrongful death claim.

However, some victims do not have a spouse or children. In these cases, the people who can file a wrongful death lawsuit (in this order) include:

• The victim’s parents
• The victim’s siblings
• The victim’s closest living family member

Should You Settle a Wrongful Death Lawsuit or Go to Trial?

Whether you choose to settle your wrongful death suit or go to trial depends on the settlement amount. The settlement should compensate for economic and non-economic damages. Economic damages are any expenses related to the decedent’s injuries and death. Non-economic damages provide compensation for the personal suffering the decedent’s family members endured. Grounds for economic and non-economic damages may include:

• Economic damages
  • Burial expenses
  • Childcare costs
  • Funeral costs
  • Loss of gifts or benefits
  • Lost wages (including future value)
  • Medical bills
  • Property damage
• Non-economic damages
  • Anxiety
  • Depression
  • Grief
  • Loss of companionship
  • Loss of consortium
  • Loss of quality of life
  • Pain and suffering
  • Post-traumatic stress disorder (PTSD)

You may be able to seek punitive damages as part of your wrongful death case. These damages apply to cases where the at-fault party’s conduct meets the legal standard for gross negligence. This means the decedent’s death occurred because the at-fault party’s conduct was knowingly harmful. 

Suppose someone drove 10 mph over the speed limit because they were late for work, were in an accident, and someone died. There are grounds to consider them negligent because they broke traffic laws. However, suppose someone decides to do a street race in a residential neighborhood. On these residential streets, they travel at 120 mph, ignoring the fact that the speed limit is 30 mph. In this case, it is reasonable to conclude they knew there was a high risk of injury or death because of their actions. It’s possible to argue they’re guilty of gross negligence because they acted without reasonable concern for the safety of people in the community or other drivers on the road. 

If factors in your case justify punitive damages, you could receive three times the total compensation ordered. Since punitive damages are significant amounts, you must discuss whether you have grounds to seek these damages and ensure you receive compensation for them in any settlement offer you consider.

If the monetary value of the settlement does not fairly represent both economic and non-economic losses, you can choose to negotiate a higher payment or go to trial and present your case for more compensation. Approximately 95% of all personal injury claims, including wrongful death suits, are settled without a trial. 

An experienced wrongful death lawyer can offer sound legal advice and help you fully value your damages to bring a strong claim that puts you in a better position to get a fair settlement. However, if both parties cannot reach a fair negotiated settlement, your attorney can represent you in court.

What Is the Average Wrongful Death Settlement?

The average settlement amount for a wrongful death claim can vary significantly depending on the circumstances. Compensation is determined on a case-by-case basis using the specific facts of the victim’s life and what happened to cause the death.

However, wrongful death settlements are typically high because the results are often devastating for surviving family members. Amounts can range from tens of thousands of dollars to millions of dollars. These amounts are often distributed as a structured settlement that offers a steady stream of income to the victim’s family members.

What Factors Contribute to Determining a Wrongful Death Settlement?

Determining appropriate wrongful death settlement amounts to seek in a wrongful death case is incredibly difficult because it’s challenging to place a monetary value on a person’s life. However, several factors may be considered to help reach a fair amount that represents the surviving family members’ losses. These include:

• The age of the deceased person
• The deceased’s earning capacity
• The deceased’s state of health
• The deceased’s income at the time of death
• The age and circumstances of the deceased’s dependents
• The deceased’s education and training
• Expenses incurred for the deceased
• Value of lost benefits (pensions and health insurance)
• The circumstances of the death (i.e., medical malpractice, intentional harm)

When claiming damages, the specific amounts must be supported by objective evidence and not just an estimate. Economists and other expert witnesses can look at the deceased person’s circumstances and consider the various factors to determine a fair amount.

Suppose someone’s spouse dies a wrongful death. The surviving spouse was the primary breadwinner, and they had no dependents. Another person’s spouse dies a wrongful death. In that case, the decedent was the primary breadwinner because the surviving spouse had a disability that prevented them from working. The first spouse may not receive as much compensation as the second spouse because the second spouse relied on their spouse for financial support. 

How Are Wrongful Death Settlements Divided?

According to NRS 41.085, wrongful death compensation is awarded to surviving family members, and each legal heir can make a case for a fair amount. This is done by proving connections to the deceased and how the death has affected that person’s life.

In general, though, the most significant portion of the settlement will go to the victim’s spouse or domestic partner. The surviving children then get the next largest share, with the remaining amount being divided between other beneficiaries who can show they have suffered losses due to the victim’s death.

When determining how to divide a wrongful death settlement, factors you may consider include the age of surviving children and future anticipated costs for each child. Suppose the decedent was the father of three children. The eldest is 25. Their father paid for their college expenses and wedding. The middle child is 21, has one more year of college to earn their degree, and hasn’t married. The youngest is 18 and is preparing to start college.

In that case, more money may be set aside for the younger siblings to cover their college and wedding expenses. After those costs are accounted for, the remaining funds for dependents may be equally divided among the three children. 

Are Wrongful Death Settlements Taxable?

According to the Internal Revenue Service (IRS), most wrongful death settlement payments are non-taxable, provided they are compensatory. This means that the compensation is intended to account for the pain and suffering experienced by the case. If the damages are punitive or meant to punish the person responsible for the death, the IRS may tax the punitive damages.

It is essential that any award clearly sets forth whether the damages are compensatory or punitive. This will help resolve any confusion when it comes to reporting to the IRS. Anyone who may receive a wrongful death settlement should consult with an attorney and accountant to review the tax repercussions of any settlement proposal before it is accepted.

What Is the Highest Wrongful Death Payout in the United States?

The case of Galdamez v. U-HAUL CO. OF PENNSYLVANIA, 168 A. 3d 1257 (2017), resulted in a historic pre-trial settlement of $160 million in 2018. Olga Galdamez and her daughter died from burns after her food truck exploded due to a leaking propane tank.

Investigators found that Galdamez brought the propane tanks to a U-Haul subsidiary to be filled. However, the tanks were outdated, did not have the required safety valves, and were filled incorrectly. According to the evidence, these mistakes directly led to the victims’ deaths.

Proving Negligence To Win a Wrongful Death Claim

In order to be awarded compensation in a wrongful death lawsuit, the claimant must prove the following elements of the case:

1. Duty of care
2. Breach of duty
3. Causation
4. Damages

Duty of Care

Duty of care is part of our contract with society. People understand they’re expected to behave appropriately in society. Appropriate behavior means obeying applicable laws and acting reasonably and safely. We expect people operating motor vehicles to obey traffic laws, which include stopping at red lights and following the speed limit. We expect people to be clothed in public. When people do not comply with societal expectations and their failure to comply jeopardizes the safety of others, they’ve breached their duty of care. 

Breach of Duty

Breach of duty means failing to uphold your duty for care. Speeding contributes to many motor vehicle accidents (MVAs). When a person speeds, they neglect their duty of care because they’re breaking traffic laws. Speeding reduces the time available to respond to changing road conditions, increasing the chances of an accident and harm to others. 

Causation

To prove causation, you must show that the breach of duty directly connects to the wrongful death. In other words, you must demonstrate that the wrongful death would not have occurred if it wasn’t for the negligent actions of the at-fault party. 

Damages

The purpose of a wrongful death case is to seek financial compensation for your loss. The fourth requirement for your claim is determining the amount of compensation to seek and justifying the amount sought with bills and other relevant evidence.

What Does a Wrongful Death Lawyer Do?

Wrongful death attorneys handle the following tasks:

• Accident investigation: Your attorney will conduct a comprehensive investigation, ensuring they establish who is at fault for your loved one’s death and the circumstances that led to their death. They will use this information to determine if they can prove negligence. Accident investigations may be relatively straightforward if your loved one died in an MVA involving only two vehicles; however, an investigation could be time-consuming and complex if they died in a multi-car collision or if the accident involved a commercial vehicle. Wrongful death attorneys can depose witnesses and subpoena business maintenance records and employee records as part of their investigation to ensure they identify who’s responsible and secure evidence to support your case.
• Calculate damages: Your wrongful death lawyer will help you calculate the total financial compensation you can seek for your wrongful death claim. Your attorney will ensure you consider all justifiable expenses and help you fight for the maximum compensation available. 
• Negotiate a settlement: Dealing with insurance companies and defendants’ legal representatives can be stressful and challenging. Your wrongful death lawyer can handle all communication concerning your case. They will use the evidence they collect during their investigation to justify the damages sought during settlement negotiations and inform you of all offers.

How Adam S. Kutner, Injury Attorneys, Can Help

While a personal injury attorney can’t guarantee successful results, your chances of recovering damages significantly improve if you have a knowledgeable attorney to represent you. Adam S. Kutner, Injury Attorneys, has an experienced team of wrongful death attorneys who understand how traumatic and stressful it is to lose a loved one. We’re here to guide you through the legal process, answer your questions, and provide the help you need to ensure you get the compensation you deserve.