Lost compensation is a method of capturing economic damages in personal injury, medical malpractice, wrongful termination, failure to promote and other similar torts. Independent damages experts (often economists or CPAs) are often employed to calculate lost compensation because of their unique background/skill set in addressing such economic losses. However, the desire to minimize costs means that these experts are often employed after settlement/mediation efforts have failed. This presents a difficult situation for counsel, who are negotiating and/or agreeing to a settlement without the benefit of the expert’s opinion regarding damages. As a result, plaintiffs may leave money on the table, defendants may overpay, or efforts may be wasted further pursuing an unrealistic expectation when a settlement offer was reasonable.
Ideally, one would have the full benefit of the testifying expert’s opinions prior to settlement negotiations. However, access to an interactive settlement/mediation tool can provide counsel with the information necessary to provide meaningful advice to the client about appropriate damage amounts. Use of such a tool and the resulting conclusions can also assist with settlement/mediation discussions in general by demonstrating that amounts requested/offered are based on reasonable application of defined inputs, properly applied. The semi-automated model created by Fulcrum Inquiry calculates lost compensation based on Plaintiff specific inputs including demographics and historical earnings, combined with government statistics, economic studies, and market conditions. More information about the tool can be found here.