How Case Value Is Affected by the Recession
A bad economy will usually complicate the client’s efforts to get a fair settlement and may lead him to make hasty decisions. A knowledgeable New Jersey personal injury law firm will offer you honest and realistic advice on how to approach your case.
The steep budget cuts resulting from the recession are affecting every branch of state government, and the judiciary is among the hardest hit.
Every state is reducing court staff and failing to replace retired judges. Some courthouses might be closed entirely. This will affect the small to medium personal injury cases the most, as judges may discourage a New Jersey personal injury law firm from taking the $20,000 to $30,000 case to trial when the cost of trial might dwarf the verdict amount. Judges increasingly prefer to allocate limited judicial resources on high profile criminal, product liability, and medical negligence cases. The insurance carrier, therefore, realizes that a $45,000 to $50,000 case will take a long time to get a trial date, if it does at all.
Your own court costs may increase as the cash-strapped court expects you to pay for filing fees, mediation costs, and other expenses that the judiciary once paid for.
Unreasonably High Settlement Expectations
Clients hit by the recession often attempt to resolve financial issues by settling their case. If they’re heavily in debt, they may pass on a respectable settlement offer and hold out for a substantial settlement amount. Meanwhile, others are so desperate for any kind of money that they will settle at the first offer regardless of the low amount. Fraudulent claims will be on the rise, and more people will embellish their symptoms to increase settlement amount.
Reimbursement Demands from Insurance Companies
In a normal economy, health insurers who pay your medical bills generally accept only a partial reimbursement from your settlement of judgment.
But in an economic downturn, insurance companies are more likely to ask for full reimbursement, or almost a full reimbursement, instead of reducing their liens substantially. Convincing the people in the state Medicaid office to lessen their liens in non-catastrophic cases was difficult even in a strong economy. They generally seek one hundred cents on the dollar and will not likely go any lower. Your New Jersey personal injury law firm will expect rejection when they contact insurance carriers to request a lien reduction.
Personal injury plaintiffs looking for legal representation from a reputable New Jersey personal injury law firm should call the Clark Law Firm, PC at 1-877-841-8855.