Wondering wrote:
Ok - I agree with you on some points. BUT - why $6 million? Is that what the family will lose from income over the rest of their lives from the loss of their husband/father? Where did that figure come from? I cannot understand any juror that would feel a family deserves to ge "filthy" rich off of the state because of a tragic accident. NO amount of money is going to make things better for the victim or anyone else that might fall victim to the same circumstances in the future. In my opinion, unless they are using the money for the good of the memory of the victim and not to live a life of luxury without him, it's a shame.
I'm not an attorney, so I hope one will correct me on some assumptions.
I don't know the particulars of this case and how they arrived at damages (punitive, negligence, etc), but I've worked on cases when I was a PI that involved liability.
Cases are expensive. You have to pay attorneys, investigators, expert witnesses, filing fees, laboratory fees, and so on.*Very few* cases ever go to trial. Most are settled or dismissed.
Yes, attorneys make a lot when they take a case for a percentage. They also risk a lot. While you do have some slime like {redacted - a South Louisiana attorney who runs a lot of TV ads about 'getting your check'}, most lawyers are hardworking folks like anyone else.
Cases can drag on practically forever, get appealed and appealed again, damages get reduced, and so on.
That's why these things get settled, often for pennies on the dollar.
I would be shocked if that full $6 million in damages gets paid out. But lets say they did.
Say that the attorney gets a third (I don't know the caps nowadays and it depends on the type of case - e.g. worker's comp), expenses are recouped, and so on.
I don't believe taxes are going to be an issue - this isn't income, it's damages.
So let's say half:$3 million and it's paid out as a structured settlement rather than a lump sum.
Even as a lump sum if it's put in very conservative investments and the family lives off the interest then after taxes (they'll pay taxes on the capital gains), they'll get $127,500 a year in perpetuity.
$3 million sounds like an awful lot of money. It isn't. Over any average middle-class lifetime, you can retire with that in the bank if you:
* pay off your debt
* live within your means
* save
* invest in your 401k
* invest in an IRA
I don't think $6 million is an unreasonable judgment.
It's hardly filthy rich, which is why you see so many lottery winners dead broke and deep in debt just a few years after they cash in the ticket - and regrettably some family members who live that way after getting a settlement or collecting on a judgment.