Partial Settlement Reached In Celebrity Car Crash

Reality star Caitlyn Jenner recently settled a lawsuit concerning a fatal four car pile-up crash that took place on the Pacific Coast Highway.
Injured victim and Hollywood agent Jessica Steindorff received an undisclosed sum from Ms. Jenner’s insurance company in exchange for a liability release. Ms. Steindorff had demanded compensation for her economic losses, like lost wages, and non-economic losses, such as her pain and suffering. Two other lawsuits against her, a wrongful death action filed by Kim Howe’s survivors and Peter Wolf-Milesi’s negligence action, are still pending.
The passengers in Mr. Wolf-Milesi’s Hummer also filed suit against Ms. Howe’s estate, demanding $18.5 million in damages.
Settling a Car Crash Case
The government states that 97 percent of civil cases, a category that includes tort actions, settle out of court. So, in addition to preparing a case for trial, an attorney must also engage in ongoing settlement negotiations with the defendant; in a negligence case, the defendant of record is nearly always the tortfeasor’s (negligent person’s) insurance company.
Many of these cases settle before a lawsuit is even filed. After ascertaining the amount of economic damages, an attorney sends a demand letter to the insurance company. In most cases, the insurance company must respond within 30 days, and that response is generally a counter-offer.
As a side note, the total amount of damages must be included, because when the case settles, the insurance company will require the victim to sign a release of any and all future claims stemming from that incident.
Insurance companies are aware that injured victims, who are typically too hurt to work, are under extreme financial pressure. As a result, the first offer is often a “low ball” offer that does not approach fair compensation. So, there are typically further offers and counter-offers, and this process does take time.
If financial pressures are significant, a partial cash advance against future settlement proceeds may be an option. Essentially, this process allows the injured victim to quite literally buy time, so that negotiations can continue and more money can hopefully be obtained.
If the two sides remain far apart, a lawsuit must be filed, because these claims have a rather short statute of limitations. At that point, the judge generally refers the parties to formal mediation. If a settlement still cannot be reached, which is highly unlikely, the matter proceeds to trial.
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