How Do You Negotiate A Wrongful Death Settlement? 

What Factors Affect A Wrongful Death Settlement Amount?

It’s necessary to understand how wrongful death settlements are calculated before you can determine the maximum amount of compensation available.

Colorado allows immediate family members to seek damages, such as:

• Economic damages, which can include:
  • Burial costs
  • Cost of household services, such as child care, housecleaning, etc.
  • Funeral expenses
  • Lost income
  • Medical bills
• Non-economic damages, which can include:
  • Grief
  • Loss of consortium
  • Mental anguish
  • Pain and suffering
  • Post-traumatic stress disorder (PTSD)

Depending on the circumstances, you may be able to seek punitive damages. In Colorado, wrongful death settlement caps apply to non-economic damages and punitive damages.

When calculating damages, several factors can affect the amount you can seek, including the following:

• Decedent’s age: The age of the decedent affects how much earning potential they had, which determines how much compensation you can seek for lost wages.
• Decedent’s health: Suppose medical malpractice caused your loved one’s wrongful death. Their health status and prognosis may be factors considered when calculating damages.
• Decedent’s income: The decedent’s income is used to calculate lost damages. 
• Number of dependents: Damages are typically higher for decedents with more dependents.

The liable party’s insurance is another factor affecting the damages you can seek. Damages are typically capped by their insurance plan.

How Does The Negotiation Process For A Wrongful Death Settlement Work?

The best starting point in the negotiation process is to hire a wrongful death lawyer to oversee your case.

Your legal team will take the following steps:

• Investigate to verify a wrongful death occurred.
• Gather evidence.
• Identify those at fault.
• Calculate damages.

Next, your lawyer prepares and sends a demand letter to the at-fault parties to initiate the negotiation process.

After the demand letter is issued, your lawyer will:

• Review settlement offers.
• Prepare counteroffers.
• Represent your interests in mediated settlement negotiations.

Your lawyer will also keep you informed of all offers and provide counsel about whether to accept or continue negotiations. Once you accept a settlement, your lawyer will finalize the agreement.

What Is A Demand Letter And How Is It Used In Settlement Negotiations?

A demand letter outlines the grounds for a legal dispute and the damages sought. In the case of a wrongful death, the demand letter outlines the evidence supporting the wrongful death claim and the accused party’s liability. The demand letter then requests the damages your lawyer determined you could seek.

Demand letters initiate the legal process. If an accused party fails to respond by the deadline provided in the demand letter, your lawyer can file a wrongful death lawsuit. If the accused responds and you enter settlement negotiations, the demand letter provides a summary of the evidence justifying the amount of compensation sought.

How Do Insurance Companies Approach Wrongful Death Settlement Negotiations?

Insurance companies try to avoid paying the maximum compensation available. They typically respond to demand letters with a low counteroffer. During settlement negotiations, insurance companies attempt to reduce their client’s liability to reduce the settlement amount. They may also challenge grounds for compensation, such as the cost of home maintenance or the amount of lost wages you can claim.

What Are Common Tactics Insurers Use To Reduce Settlement Payouts?

One of the most important wrongful death lawsuit tips to keep in mind when negotiating a settlement is that the insurance company will try to get you to reduce their liability by shifting some or all of the blame to the decedent.

That’s one of the reasons you should have an experienced wrongful death lawyer handling your case. Your lawyer will insulate you from the insurance company. Since they’re familiar with their tactics, they’ll prevent the insurance company from reducing their liability.

How Long Does It Take To Reach A Wrongful Death Settlement In Colorado?

The timeline for reaching a negotiated wrongful death varies. Straightforward cases may be resolved within months. Cases involving multiple at-fault parties may take longer to resolve because the percentage of blame must be determined.

What Happens If A Fair Settlement Cannot Be Reached?

If an insurance company doesn’t agree to a reasonable settlement or the case is complex, the case may go to trial.

For example, two years after failing to secure a conviction against O.J. Simpson, the families of Ron Goldman and Nicole Brown Simpson won a wrongful death lawsuit against him.

When a case goes to trial, the at-fault party may appeal the verdict. It takes longer for victims to receive compensation when a case goes to trial.

How Does Colorado Law Impact Wrongful Death Settlements?

Colorado law determines the following:

• Its definition of wrongful death.
• Which family members can seek compensation for a wrongful death.
• The maximum amount of non-economic damages claimants can seek.
• Whether punitive damages apply.
• The statute of limitations for pursuing a wrongful death claim.

What Mistakes Should You Avoid During Wrongful Death Settlement Negotiations?

You should avoid communicating directly with the at-fault party or their insurance company. Insurance companies often attempt to mitigate their client’s liability, which is why you should have an experienced lawyer handle all communications.

You must also take action before the wrongful death statute of limitations expires. Once the state’s legal deadline passes, you cannot initiate a wrongful death case.

Why Is It Important To Have A Wrongful Death Lawyer During Negotiations?

Your lawyer is a trained professional who’s familiar with relevant case law and settlement negotiation proceedings. They use their experience to prepare the most compelling case possible. Your lawyer will present your case and use the evidence recovered during their investigation to support your claim.

Lawyers also have experience with insurance company tactics, so they can counter arguments to reduce the accused party’s percentage of blame. Since your lawyer worked with you to calculate the amount of damages sought, they have all the relevant information required to justify those amounts.

How Can A Colorado Wrongful Death Lawyer Help Maximize Your Settlement?

A Colorado wrongful death lawyer will review all possible grounds for economic and non-economic damages. They will ensure the maximum amount of damages is sought for all relevant grounds.

For example, suppose your loved one received raises at regular intervals and annual bonuses. Your lawyer will ensure those raises and bonuses are included in the amount of lost income sought.

Your lawyer will also ensure the at-fault parties assume the maximum percentage of blame possible to ensure the highest settlement possible.

How Bachus & Schanker Can Help

Bachus & Schanker have extensive experience negotiating wrongful death settlements. One of our attorneys lost a family member to a wrongful death, and we understand how traumatic it can be.

We also have a Victim’s Advocates team who assist with investigations and support you throughout the legal process. We will also fight to ensure every victim receives the maximum compensation available. 

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