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What are Punitive Damages? (Personal Injury)

What are Punitive Damages

Unlike economic or non-economic damages awarded by a judge or jury in a civil tort trial, punitive damages have little to do with the actual harm suffered by the plaintiff in the actual injury.  Punitive damages, on the other hand, are awarded strictly as a form of punishment against the tortfeasor.  Punitive damages are most often awarded in situations where the defendant's actions are so reckless and without regard for society at large that the award of damages, in excess of those found to be suffered directly by the plaintiff, are deemed necessary to punish the tortfeasor and curb the likelihood of those actions being repeated.  Often when awarding punitive damages the awards will not be granted directly to the plaintiff but will require the defendant to pay a certain amount of money into a charity or fund to aid members of society who have been injured by actions that are seemed to be similar to those that the defendant has been found liable of.

 When are Punitive Damages Available?

Punitive damages are usually available in tort cases where the defendant's actions rise above mere negligence.  Punitive damages are found, most famously, in tort cases against corporations for their reckless disregard for human safety in the maintenance of their facilities or by purposefully sending defective and dangerous products into the marketplace.

Where punitive damages are available in most tort situations they are not commonly available in contract disputes.  The idea behind litigation in a contract is that the parties should be put into the positions that would best suit the idea of "fair dealing." The idea of a punishment is not something that equates well with contract law.  There are exceptions to the rule, such as when a party to the contract acts in bad faith.

What are the Limits of Punitive Damages?

There is no actual dollar amount that a judge or jury is limited when awarding punitive damages.  However, due to judges and juries awarding, what the Supreme Court noted as, excessive punitive damages the Supreme Court has made a number of decisions limiting the amount that can be awarded.  In one situation the Court has noted that a 4:1 ratio between punitive and compensatory damages is acceptable whereas they held in another case that a ratio of 10:1 is excessively high and would be unconstitutional under the due process clause of the 5th and 14th amendments.  The rationale being that a punitive damages award of that ratio would constitute a criminal punishment without due process of law.

The Controversy Over Punitive Damages

The controversy over punitive damages extends from the excessive nature of the award.  Juries have often been found to, not only sympathize with a seriously injured plaintiff, but also show disdain and contempt for reckless and callous defendant's, especially those that take the form of corporations.  In that sense it is not a surprise that many juries tend to award punitive damages far in excess of that which would be deemed reasonable.  Many consider the practice of awarding punitive damages a form of criminal punishment and, in fact, punitive damages are considered "quasi –criminal." "Tort reform" legislation seeks to curb the practice, or at least, scale back the awards that juries are entitled to hand out.

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How to Determine the Amount of Damages Accumulated (Personal Injury)

When a plaintiff's injuries are a result of the defendant's action or inaction, the plaintiff will be entitled to personal injury compensation. This compensation usually comes in the form of damages, which is a monetary reward. This money may cover the plaintiff's medical bills, wages that were lost during the time of the injury, and possibly mental pain and suffering.

Personal injury compensation is calculated based on the specific circumstances of the case, but there are some general guidelines that will help a person determine the amount of damages that will be rewarded. Most personal injury cases do not require a trial date. Usually, a settlement will be worked out where each party's attorney and insurance agents will calculate damages without the aid of a judge. As long as all parties accept the settlement, there is no need to go to trial.

The main factor in determining personal injury compensation is medical expenses. The plaintiff will be required to submit medical bills. The amount of medical expenses that the defendant is responsible for paying will be only those that are directly related to the accident. This will also include the expectation of future medical bills. If the injured party is employed, personal injury compensation will generally cover the amount of money that is lost during the time the plaintiff is unable to work. For example, if a plaintiff is injured due to the fault of the defendant, this may cause them the inability to go to work.

The actual length of time of the injury, including any rehabilitation will be factored into personal injury compensation. If the plaintiff returns to work, but is unable to perform his or her job to the same ability as previous to the accident, personal injury compensation may account for this. The defendant could be liable for future wage loss that plaintiffs will injury due to their resulting sub par job performance.

When then are permanent damages caused to a plaintiff, this person can expect to receive more in the amount of compensation. Personal injury attorneys will factor in activities that a plaintiff will no longer be able to engage in due to the injuries sustained. For all of these claimed injuries, there should be considerable proof. This will often be based on the credibility of witnesses and the plaintiff himself.

Non-monetary damages are considerably more difficult to calculate than monetary personal injury compensation. Pain and suffering refers to damages that may be awarded based on the amount of mental anguish that a plaintiff must suffer due to his or her injuries. This will also include the mental strain caused by having to avoid certain activities that a person used to enjoy before the accident.

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Arbitration: Is it Required? (Personal Injury)

Arbitration is a form of alternate dispute resolution in which an outside party, known as an arbitrator, evaluates a civil dispute between parties and, in essence, acts as the "judge and jury."  The decision that the arbitrator makes is often binding upon the parties involved.  A court of law is, in no way, involved in arbitration and will only interfere when there are egregious actions taken on the part of the arbitrator.

 When is arbitration binding?

Arbitration can be either "binding" or "non-binding."  Binding arbitration means that the successful party in arbitration takes an arbitration award.  If the unsuccessful party to the arbitration refuses to honor the arbitration award the court can interfere and force the unsuccessful party to honor the arbitration agreement.

"Non-binding" arbitration is exactly what it sounds like, arbitration that does not result in a permanent resolution that can be enforced by the court system.  Non-binding arbitration is usually used as a forum to resolve differences between the parties but no one must be bound by the arbitrator's decision.

Are there any safeguards to arbitration?

As noted earlier, arbitration occurs with little to no court involvement.  As such it is up to the parties involved to be cautious about whom they select as an arbitrator.  At times the result of arbitration can be unjust and when arbitration results in a completely unfair result the courts may intercede.  The instances when a court will review an arbitration award include:

·         Corruption, fraud, or miscarriage in arbitration proceedings
·         Bias of the arbitrator chosen to be neutral
·         The arbitration exceeded the powers authorized

Can arbitration be required?

As mentioned above, a court of law may not impose mandatory arbitration.  However, the parties to a contract may stipulate the imposition of arbitration.  This comes up most often when signing a boilerplate contract.  Somewhere in a boilerplate contract will arise a subsection requiring mandatory arbitration or mediation.  These sections are customary in many contracts and are a way for corporations and other entities to settle legal matters out of court.  The policy behind this is not only financial but also based on public perception.

Where matters that arise in front of a court of law are not only publicized in the media and open to the public, they are also part of the public record and accessible to all.  Arbitration, on the other hand is a private matter and the negotiations involved, and the results, are not a matter of public record and often take place in private.

Are arbitration clauses enforceable?

Current Supreme Court decisions have solidified the enforceability of mandatory arbitration clauses.  Specifically in Buckeye Check Cashing, Inc. v. Cardegna the Supreme Court held that even if a contract is found to be completely void on its face, the mandatory arbitration clause will stand.  This is a prime example of how the judicial system favors arbitration.

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Credits

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Annuity (Personal Injury)

An annuity is a financial instrument that provides fixed payments over a specified period of time. An annuity provides a distribution of finances, earned on an investment in a fixed schedule; the payments are allocated to the holder of the annuity in quarterly, monthly, biannually or annually installments.

 An annuity is typically used as part of a retirement plan; the instrument is a fixed-income investment that ensures stable income once the holder stops working. The most common form of an annuity is a pension fund; while the retiree was working, the individual paid a portion of his or her salary into a pension fund, which is invested. Once the holder retires, the return on the investment takes the form of an annuity and is disbursed periodically to the individual.


What is a Deferred Annuity?

• A deferred annuity is a type of annuity that withholds the money invested by the policy holder until the individual turns 59.5. The money is then offered periodically to the individual as a form of retirement savings.

• A deferred annuity consists of two distinct phases: the accumulation phase and the distribution phase. During the accumulation phase, the annuity holder offers regular payments to the insurance company. These payments are then gathered and invested to accumulate interest. The investments of the deferred annuity receive credited interest based on the terms expressed in the contract.

• A deferred annuity offers limited liquidity during the accumulation phase; typically 10% per year may be withdrawn (after the holder reaches 59.5) from a deferred annuity account without incurring a penalty. A withdrawal made before the age of 59.5 will incur a 10% tax penalty instituted by the Internal Revenue Service and levied by the underlying insurance company.

• The accumulation phase refers to the gradual saving for retirement via regular payments. As oppose to offering one lump sum, the accumulation phase enables the holder to take advantage of the insurance company’s tax deferred offering to shelter investment gains until distribution.

• That being said, when the accumulation phase ends, the distribution phase begins. In a deferred annuity, the distribution phase requires the insurance company to dispense any accumulated proceeds—according to the plan stipulated in the annuity contract—into the holder’s account. The rate of payments and the amount offered by the deferred annuity is subject to the type chosen.

Types of Deferred Annuity Plans:

 Fixed Deferred Annuity: This type of deferred annuity offers a fixed rate of return for a period specified in the annuity contract. A fixed deferred annuity will also be attached with a death-benefit provision, which will transfer funds to a spouse or loved one following the holder’s death.

• Variable Deferred Annuity: Unlike a fixed deferred annuity, the investments in a variable deferred annuity are selected by the holder (rather than the insurance company) and as a result, are attached with variable or fluctuating interest returns.

• Index Deferred Annuity: The credited interest return gathered during an index deferred annuity’s accumulation period is tied to an index of economic performance, such as the Standard & Poor’s.

• CD Deferred Annuity: A CD Deferred annuity, similar to a commercial deposit, provides a holder with credited interest rates with guaranteed pay period equal to the investment term and duration of stipulations expressed in the contract. A CD annuity may also be offered as a fixed annuity with limited liquidity, surrender charges and death benefits. A CD deferred annuity will last from 1 to 10 years.

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Evidence (Personal Injury)

In a broad sense, evidence refers to anything that is used to demonstrate or determine the truth of a legal matter. It is the information for which a legal case is built-on; evidence helps formulate a conclusion or judgment. 

 Types of Evidence:

There are four types of evidence: demonstrative, documentary, testimonial and real.

Real Evidence: This form of evidence is any object or matter relevant to the case in question. Real evidence is typically an object that is directly involved in some aspect of the case. To be deemed admissible, real evidence—similar to the other forms of evidence—must be material, competent and relevant. Murder weapons, clothing or wrecked vehicles may all be deemed real evidence when collected at the scene of a crime.

Real evidence is authenticated in three ways—through identification of a unique matter or object, by identification of the said object that is made unique or establishing a chain of custody. For the evidence to be deemed admissible it only has to be authenticated using one of the above means.

Demonstrative Evidence: This form of evidence illustrates a witness testimony. Demonstrative evidence is admissible when it can fairly and accurately reflect the testimony and is otherwise deemed unobjectionable—it is authenticated by the witness whose testimony is being illuminated. The witness will identify salient features of the evidence and testify that it accurately reflects what the individual saw or heard during the particular occasion. Common examples of demonstrative evidence may include: diagrams of the crime scene, maps or animations.

Documentary Evidence: A form of real evidence in document form, such as a contract. When a document is offered to the court, it is authenticated in the same way as other forms of real evidence—a witness must identify it or establishes a chain custody for it.

Testimonial Evidence: This form of evidence is the most basic form of evidence and the only kind that does not require a prerequisite for its admissibility. Testimonial evidence consists of witness testimonies, expert opinions and everything that is said in the court. That being said, the witness or source providing the testimony must be deemed competent by the court for the individual’s words to be taken into account. In general, witnesses are deemed competent if the individual meets the following requirements:

• The individual must, with understanding, take the oath of the court or an admissible substitute

• The individual must have personal knowledge about the information he or she is speaking on. The witness must have perceived something with his or her senses that is relevant to the case.

• The witness must accurately remember what he or she perceived

• The witness must be able to communicate—lucidly—what he or she perceived.

How is Evidence Collected at a Crime Scene?

The bulk of crime scenes are surrounded by crucial evidence that must be collected for analysis and use in future prosecution efforts. The process of collecting evidence is stringent; law enforcement officers must employ exacting techniques to avoid tampering with the evidence. Without use of these techniques, evidence may be lost, contaminated or overlooked. Moreover, improper collection of evidence can be deemed inadmissible in court or at a trial.

The following steps must be taken by a law enforcement officer when collecting evidence:

1. The officer must secure and preserve the crime scene. Before evidence can be collected, the scene must be taped-off and secured to prevent further contamination. The crime scene must be formally established; a perimeter must be secured to only allow the entry of necessary personnel. The scene should also be photographed before any evidence is collected.

2. The officer must put on gloves and protective clothing to prevent contamination. The officers must first collect evidence that is fragile or susceptible to the elements. For example, hair, seminal fluid or other liquid evidence can be contaminated or lost quickly.

3. The officers or investigators must use cotton swabs or gauze to gather liquid evidence, such as blood. Items containing seminal fluid or blood should be transported into paper bags to hold moisture and prevent bacteria from forming. When collecting hair, thread or fibers, the officers must use tweezers. Each piece of evidence must be placed individually in sealed bags or containers.

4. For fingerprints, the officer must employ a special powder that adheres to the oil found on the human finger. When a print is detected it will be “lifted” through the use of a special adhesive. This tape is placed on a glass slide, marked and then transported into a sealed plastic evidence bag.

5. For larger pieces of evidence, such as weapons or clothing, the officers must use plastic gloves when transporting the items. It is essential that the officers or agents at the scene do not contaminate the evidence with finger prints, liquids, bacteria or anything else that would manipulate the item or alter it’s surface.  

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