Study 9 - Evaluation, Negotiation, and Settlement Flashcards
burden of proof
The standard by which a claim must be proven to prevail. The burden of proof is typically borne by one party or another.
damages
The monetary compensation recovered by a party who has suffered a loss or injury to person or property through the negligence of another.
compensatory damages
A sum of money to which a plaintiff is entitled that makes amends for an actual loss sustained and nothing more.
special damages
Actual loss from the natural, not the necessary, consequences of the subject of complaint; for example, specific payments for medical bills or car repairs. In third-party claims, it means the damages that may be proved with documents.
general damages
Damages awarded by a court of law for the pain and suffering of an individual; applied in a third-party injury claim.
pecuniary loss
Damages of loss that can be quantified in money; for example, wage loss as a result of bodily injury sustained from a slip-and-fall accident.
non-pecuniary loss
Payment for loss or harm that is not assessable in money. Where personal injury occurs, compensation may be payable for non-pecuniary loss in the form of pain an suffering during serious illness. and also physical defects, disfigurement, or other permanent aftereffects.
aggravated damages
Damages designed to compensate a plaintiff for suffering intangible damages, such as humiliation and distress, as a result of the defendant’s actions.
punitive damages
Damages in excess of those required to compensate the plaintiff for the wrong done, which are imposed in order to punish the defendant because of the particularly wanton or willful nature of his or her wrongdoing. Also called exemplary damages.
tortfeasor
A wrongdoer; a party guilty of a tort.
crumbling skull rule
A rule of damages whereby the tortfeasor is only required to put the plaintiff back in the position he or she would have been in had the tort not occurred, and not in a better position. It is a well-established legal doctrine used in some tort law systems. A defendant is only liable for the degree the injury was worsened
errors and omissions insurance
An insurance form that protects the insured agains liability for committing an error or omission in the performance of professional duties. Generally, such policies are designed to cover financial losses rather than liability for bodily injury or property damage.
nuisance settlement
Sometimes, insurance companies consider making a nuisance settlement on economic grounds rather than on the obvious merits of a case. A relatively inconsequential claim paid today may save legal fees and other associated court costs that are likely to exceed the value of the claim. If counsel assesses what will be spent on defending or trying a case and fins that to ligate will cost more than to pay the claim in full immediately, the insurer may prefer to settle.
structured settlement annuity
An agreement in settlement of a claim involving specific payments made over a period of time instead of a single lump sum. Annuities are usually used as the funding mechanism.
arbitration
A method of resolving disputes between parties whereby impartial, neutral persons are chosen by the parties in dispute to determine their rights and/or obligations. The parties agree in advance to abide by the arbitrament. Each party is heard, issues are examined, and a settlement is developed. The settlement can be final and binding.
