Most product liability cases settle before trial, but understanding how settlements work—and what factors affect case value—helps injured consumers evaluate offers and make informed decisions. Settlement provides certainty and faster resolution, while trials offer the potential for larger awards but carry risk.

Factors Affecting Settlement Value

Injury severity is the primary driver of settlement value. Minor injuries with full recovery settle for far less than catastrophic injuries causing permanent disability. Medical expenses, lost wages, and pain and suffering all increase with injury severity.

Liability strength affects what defendants will pay. Cases with clear defects, documented injuries, and no comparative fault issues settle for more than cases where liability is disputed or plaintiffs share some responsibility.

Evidence quality matters significantly. The defective product itself, expert opinions, internal company documents showing knowledge of defects, and prior similar incidents all strengthen negotiating position.

Defendant resources determine what's available. Large manufacturers with substantial insurance settle cases that judgment-proof defendants cannot.

Typical Settlement Ranges

Settlement values vary enormously based on case specifics. General ranges include:

  • Minor injuries (soft tissue, resolved within months): $10,000 - $75,000
  • Moderate injuries (fractures, surgery required): $75,000 - $300,000
  • Serious injuries (permanent impairment, lengthy recovery): $300,000 - $1 million
  • Catastrophic injuries (paralysis, TBI, amputation): $1 million - $10 million+
  • Wrongful death: $1 million - $20 million+ depending on circumstances

These ranges are illustrative only. Every case is unique, and many factors can push values above or below these ranges.

Types of Damages

Economic damages include quantifiable losses: medical expenses (past and future), lost wages and earning capacity, costs of assistive devices and home modifications, and property damage.

Non-economic damages compensate for intangible losses: pain and suffering, emotional distress, loss of enjoyment of life, disfigurement, and loss of consortium for spouses.

Punitive damages may be available when manufacturer conduct was particularly egregious—knowingly selling dangerous products, concealing defects, or ignoring safety to maximize profits. Punitive damages can dramatically increase total recovery.

The Settlement Process

Settlements typically begin with a demand letter outlining your injuries, liability theories, and compensation sought. The defendant responds with an offer, usually far below the demand.

Negotiations continue through offers and counteroffers. Most movement occurs when trial dates approach and both sides face the uncertainty of jury decision. Many cases settle during or immediately before trial.

Mediation—using a neutral third party to facilitate negotiations—helps parties reach agreement in many cases that couldn't settle through direct negotiation.

Structured Settlements

Large settlements may be structured as periodic payments rather than lump sums. Structured settlements provide guaranteed income streams and can have tax advantages. They're particularly appropriate when plaintiffs need long-term care or have difficulty managing lump sums.

Structured settlements trade flexibility for security. Consider your specific needs when deciding between lump sum and structured options.

Settlement vs. Trial

Settlement offers certainty—you know exactly what you'll receive. Trials carry risk: juries may award more than settlement offers, but they may also award less or nothing.

Factors favoring settlement include desire for faster resolution, risk aversion, need for immediate funds, and cases where liability or damages face challenges.

Factors favoring trial include unreasonably low settlement offers, strong liability and damages evidence, potential for punitive damages, and cases where manufacturers need to be held publicly accountable.

Evaluating Settlement Offers

Never accept settlement offers without understanding their full implications. Early offers are typically lowball attempts to resolve claims cheaply. Factors to consider include whether the offer covers all your damages, how it compares to similar case outcomes, litigation risks if you reject it, attorney fee deductions and costs, and liens that must be satisfied from proceeds.

Your attorney should explain the strengths and weaknesses of your case and help you evaluate whether offers are fair. The final decision to settle or proceed is always yours.