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Wrongful Death Claims

Wrongful Death Settlements – How It Works in California

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Wrongful Death settlements compensate for monetary losses incurred due to the death of a family member from an accident. In California, the procedure for seeking a wrongful death settlement is similar to filing a personal injury claim, though there are specific differences unique to wrongful death cases.

What damages can I get?

In a wrongful death settlement, you can claim compensatory damages for financial losses that directly result from the death of your loved one. This compensation can cover:

  • Financial Support: The financial assistance your loved one would have provided if they had not died,
  • Loss of Consortium: Compensation for the loss of companionship and support,
  • Funeral and Burial Expenses: Costs directly associated with the funeral and burial.

You can include a “survival action” with the wrongful death lawsuit. A survival action allows the estate to claim damages your loved one incurred before death, such as:

  • Medical Bills: Expenses for medical treatment received before death,
  • Lost Wages: Income the deceased lost due to their final illness or injury,
  • Property Damage: Any property damage that occurred during the incident that led to death,
  • Pain and Suffering: Compensation for physical pain and emotional distress suffered by your loved one prior to their death.

In California, survival actions also permit the pursuit of punitive damages, which are designed to punish the defendant for their actions that contributed to the death.

What is the average settlement?

The average settlement for wrongful death claims can vary significantly based on the specifics of each case.

Settlements in cases that do not go to litigation often reach up to $10,000, typically reflecting standard policy limits for wrongful death insurance.

However, many settlements achieve six- or seven-figure sums, particularly when defendants face the risk of higher payments should the case proceed to trial and result in a verdict against them.

Recent notable settlements in California include:

  • $10,000,000 in a case involving a fatal car accident caused by an off-duty police officer (Dominguez v. City of San Diego).
  • $5,300,000 for a wrongful death claim stemming from excessive police force (Sommers v. City of Santa Clara, et al.).
  • $5,000,000 for a pedestrian fatally struck by a commercial truck (Harder, et al. v. Golden State Portables, et al.).
  • $3,000,000 for a death due to exposure to Legionnaire’s Disease in a hotel (Winfield v. YTLife Investments, LLC, et al.).

It’s important to note that certain factors are not considered during wrongful death settlement negotiations, such as:

  • The personal grief, sorrow, or mental anguish of the survivors, and
  • The financial situation of either the survivors or the victim.

Are damages capped?

In California, wrongful death cases generally do not have damage caps, except in the context of non-economic damages for fatal medical malpractice cases. Non-economic damages, which include losses like loss of consortium, are subject to a specific cap.

As of 2024, the cap for these non-economic damages in fatal medical malpractice cases is set at $550,000 in California. This cap is scheduled to increase by $50,000 each year until it reaches $1,000,000 in 2033.

Wrongful Death

Am I eligible to bring a wrongful death case?

In California, you may be eligible to file a wrongful death lawsuit if you are:

  • The surviving spouse or domestic partner of the deceased,
  • A child of the deceased,
  • A grandchild of the deceased (if the deceased’s children are also deceased), or
  • Another descendant or financial dependent, as outlined in California’s wrongful death statute.

When multiple family members bring a lawsuit, any settlement awarded will be divided among them according to their legal relationship to the deceased and other factors determined by the court.

It’s important to note that any compensation awarded in a related “survival action” (for damages the deceased incurred before death) is paid directly to the deceased’s estate. This money is then used to pay off any debts of the estate and distributed according to the deceased’s estate plan.

How long does it take to get paid?

In California, insurance companies have a maximum of 40 days to respond to wrongful death demand letters. Most claims typically settle within three months after this initial response.

However, the settlement process can extend beyond this timeframe if the insurance company requires additional time for investigation or if there are complicating factors that necessitate a more thorough review.

Should negotiations break down, the case may proceed to trial, which can take a year or more to commence. Even after a favorable verdict, there is the possibility of an appeal by the defendant, which can further delay payment and increase court costs. Consequently, it’s often in the best interest of all parties to try to resolve cases without extensive litigation.

It’s also important to consider California’s statute of limitations for wrongful death claims, which is two years from the date of death. Given that evidence can become less reliable over time, it’s advisable to initiate legal proceedings as soon as possible.

Should I take a lump sum or a structured settlement?

In general, it is often recommended to opt for a lump sum settlement when resolving a wrongful death claim. This approach provides you with all the money upfront, allowing immediate access to the full settlement amount.

However, there are scenarios where a structured settlement might be more advantageous. With a structured settlement, the insurance company pays you in regular increments over a predetermined period. This can prevent the rapid depletion of the settlement funds and provide a long-term, steady source of income.

It’s important to note that once you agree to a structured settlement, the terms are usually fixed and cannot be altered, even if your circumstances change. This inflexibility is one of the reasons why lump sum settlements are typically favored.

Are wrongful death settlements taxed?

Generally, wrongful death settlements are not considered taxable income under federal tax laws, similar to personal injury or illness settlements.

However, there is an exception: if you previously deducted medical expenses related to the deceased’s accident on your tax return, those specific portions of the wrongful death settlement intended to reimburse medical expenses would then be taxable. This is because you received a tax benefit from the deductions and are now recovering those costs through the settlement.

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