A global settlement resolves the claims of multiple plaintiffs in a class action or mass tort all at once. These are large-scale personal injury cases involving multiple people who were harmed by the same product or incident, like a defective drug. Because these claims are grouped together, any resolution is typically negotiated as a single, comprehensive agreement, often before the case ever even goes to trial.
A global settlement occurs through negotiation between the attorneys representing the injured parties and the defendant’s legal team, which often includes the insurance company. Your San Luis Obispo personal injury lawyer will work to make sure your individual needs are still represented during this process.
So, who gets what? There’s a lot that goes into divvying up a global settlement, so let’s take a closer look at the specifications of a global distribution.
Benefits of a global settlement for your personal injury case
A global settlement can be a faster and more efficient way to resolve a large class action or mass tort case. This is mainly helpful when injured people need the money quickly to cover medical bills or other urgent expenses.
Instead of waiting years for a trial to conclude, a global settlement can bring the case to a close much sooner, sometimes in months rather than years. For example, product liability cases can take two years or more if they go to trial.
Another benefit is predictability. Plaintiffs typically know how much compensation they’ll receive, which makes it easier to plan for things like future medical expenses.
Drawbacks to a global settlement for the injured party
There is one big disadvantage to a global settlement: the chance you’ll receive less than your claim is truly worth. The defendant’s insurance company likely has a cap on the policy, and while it may reach into the tens of millions, it’s not infinite. Depending on the number of parties involved in the suit, each plaintiff’s share may be quite smaller than its individual potential.
A quick resolution and a guarantee that you’ll get something, even if it’s not everything you want, may be an acceptable trade-off for many plaintiffs, especially if they are in financial straits.
Bear in mind, too, that a global settlement may be your only way of securing compensation in your civil case. Your personal injury attorney, on their own, may not have the resources to pursue a long, drawn-out liability claim against a huge commercial entity or pharmaceutical manufacturer. Only by participating in the class action and subsequent global settlement would you be able to see a measure of justice.
How global settlements are divided
Once the case is settled, it’s time for equitable distribution of settlement funds. These funds may be divided in one of several ways once the legal fees have been deducted:
- Pro Rata: Each share is allocated based on each plaintiff’s proportion of the total losses
- Tiered: Several criteria tiers are established, with plaintiffs being assigned a payout based on the severity of injury and pain and suffering
- Fixed Payment: Each plaintiff receives the same amount
- Claim Reporting: Cases reported earlier may take precedence over those who joined the suit later
Usually, a settlement conference is held between all plaintiffs’ attorneys and often financial experts to determine an equitable allocation of the money.
When to speak with a personal injury attorney about global settlements
If you’ve been injured and learn you’re part of a mass tort or class action, you’ll need to understand what a global settlement could mean for your case.
These kinds of settlements can be complicated, especially when it comes to how funds are distributed and whether your specific injuries are fully accounted for. Speaking with a knowledgeable personal injury attorney can help you make sense of your options and protect your right to fair compensation.
Do you need legal advice for a personal injury claim? Please contact Ernst Law Group today at (805) 541-0300 for a free consultation.
