Does a large jury verdict guarantee full payment in a personal injury case?
Key Takeaways:
- Does a large jury verdict guarantee full payment in a personal injury case? A large jury verdict does not guarantee full payment: Factors such as limited insurance coverage, insufficient personal assets of the at-fault party, and the possibility of appeals can significantly reduce the final payout to the injured person.
- Insurance coverage plays a major role in compensation: Even if a jury awards a substantial sum, the injured person may only receive the limits of the at-fault party’s insurance policy, which can be far less than the verdict.
- Pursuing personal assets is rare: While it’s possible to go after the personal assets of the at-fault driver, this is uncommon and usually only happens in cases of egregious conduct, such as intoxicated driving.
- Uninsured and underinsured motorist coverage is essential: To protect yourself from drivers with insufficient or no insurance, purchasing substantial uninsured and underinsured motorist coverage is crucial. This coverage can provide a financial safety net when the at-fault party’s resources are inadequate.
Personal injury cases are complex, and even when a jury awards a substantial verdict to a victim, it doesn’t always mean the victim will receive the full amount. At Sinas Dramis Law Firm, we understand the emotional and financial toll this can take on injury victims and their families. Today, we’re exploring the reality behind jury verdicts and how insurance and personal assets affect what an injured person may actually receive.
Does a large jury verdict guarantee full payment in a personal injury case?
No, a large jury verdict does not guarantee full payment in a personal injury case. Several factors, such as limited insurance coverage, insufficient personal assets of the at-fault party, and potential appeals, can significantly reduce the final payout to the injured person. One of the most common misconceptions about personal injury cases is that a large jury verdict automatically means the injured party will receive all the money awarded. Unfortunately, this is often not the case.
Limited Insurance Coverage and Personal Assets
In many personal injury cases, the at-fault party’s ability to pay the jury award is constrained by two primary factors: their insurance coverage and their personal assets.
- The first hurdle to receiving full compensation is often the at-fault party’s insurance policy. Most drivers carry liability insurance, which is intended to cover the costs of injuries and damages they cause in an accident. However, the limits of these policies can vary significantly. If an at-fault driver has only $50,000 in liability coverage, but a jury awards $1 million to the injured person, the victim may only recover the $50,000 available under the policy.
- The second factor is the personal assets of the at-fault party. In most cases, individuals who cause accidents do not have sufficient assets to cover large judgments. As a result, even if a jury awards a large sum, there may be little to no way for the injured person to collect the remainder of the verdict from the defendant’s personal assets. In these cases, the verdict amount awarded and the amount actually received can differ drastically.
Appeals Can Delay or Reduce Payouts
Another challenge that can arise after a jury verdict is the appeal process. If the defendant chooses to appeal the verdict, the case may go to the Court of Appeals, which can take a year or more to resolve. During this time, the injured party may not receive any compensation. Moreover, defendants often settle for less than the full verdict amount during the appeal process to avoid the uncertainty and costs associated with an appeal.
Pursuing Personal Assets: When Does It Happen?
In some rare cases, Sinas Dramis has pursued the personal assets of defendants. This usually happens when the defendant has acted egregiously, such as driving while intoxicated or engaging in reckless behavior. In these instances, if the defendant’s insurance coverage is insufficient, it may be necessary to go after their personal assets to secure fair compensation for the injured party. However, these cases are uncommon, as most people are reluctant to pursue the personal assets of another individual, even when they’ve been seriously harmed.
What Happens When There’s No Insurance?
When the at-fault driver has no liability insurance or very low coverage, it can feel like squeezing water from a rock—you may win the case, but collecting on the judgment is nearly impossible. In these situations, an important protection for victims is uninsured or underinsured motorist coverage, which can be purchased through their own auto insurance policy. Uninsured and underinsured motorist coverage steps in when the at-fault driver cannot cover the damages due to insufficient or nonexistent insurance. It’s crucial for drivers to discuss these coverages with their insurance agents and purchase as much protection as possible. This is particularly important because it provides a safety net, ensuring that victims are compensated, even if the at-fault party lacks adequate insurance coverage.
At Sinas Dramis, we recommend that all Michigan drivers buy as much uninsured and underinsured motorist coverage as they can afford. This type of coverage is invaluable in ensuring that you are protected in the event of an accident with an uninsured or underinsured driver. Without it, you could be left with little to no compensation, even if you win your case in court.
Why Large Jury Verdicts Don’t Always Mean a Payday
While large jury verdicts may seem like a victory, they do not always result in full payment to the injured party. Limited insurance coverage, insufficient personal assets, and lengthy appeals can reduce the amount that victims ultimately receive. That’s why it’s crucial to understand the role of insurance in personal injury cases and to ensure you have sufficient uninsured and underinsured motorist coverage. At Sinas Dramis, we’re dedicated to helping clients navigate these complex issues and secure the compensation they deserve. For a free personal injury consultation from one of our Michigan personal injury attorneys, contact us by phone, or filling out a contact form on the right of this blog. If your situation is related to a motor vehicle crash, ask for a Grand Rapids auto accident lawyer, Kalamazoo car accident attorney, Lansing auto accident lawyer if you’re in the middle of the state, or one of our Ann Arbor auto accident lawyers if you’re looking for help on the East side of the state.
Listen to one of our attorneys discuss this topic here:https://youtu.be/GnytqFvNdNQ?si=A9-siIOTpXuK5ZuS