What is Personal Injury Law: It is a legal term or an injury to the body, mind or emotions. It covers physical injuries, mental injuries and death that result from the negligence or intentional misconduct of another person, group of individuals, or entity. The most common types of personal injury claims are automobile traffic accidents, accidents in the workplace, slip & fall or tripping accidents, assault claims, accidents in the home and defective products. Also, included in the personal injury realm are medical and dental accidents, which can lead to medical negligence claims.
Depending on how bad the injury to the person is and the level of intent or negligence of the responsible party, the injured person may be entitled to monetary compensation from the at fault party through a settlement or a judgment.
Most personal injury attorneys represent their clients on a contingency basis or a contingency fee retainer agreement. This means that the attorney’s fee is a percentage of the plaintiff’s (injured party) eventual monetary compensation, payable to the attorney, once the case is resolved and settled, with no payment necessary if the case is unsuccessful. Also, when in this type of contract with a personal injury attorney, the attorney will pay all upfront costs and fees, which can include costs for obtaining medical records, copies, postage, faxes, correspondence, and obtaining police reports. These upfront costs and fees are reimbursed back to the attorney once the case settles and is separate then the attorney’s fee for representation.
Damages: Damages are categorized as either special and/or general. Special costs are measured and itemized to include medical expenses, loss of earnings, property damage and other out-of-pockets expenses. General costs are less measurable such as pain and suffering, loss of consortium and emotional distress. Personal injury claims include and consider both special and general damages when a claim is submitted to an at fault party.
The amount of compensation for special and general damages in a personal injury claim depends on the severity of the injury, the amount of treatment received and whether or not an injury is permanent in nature. The worse the injury is, the greater the compensation.
Time Limitations: In the United States, each state has different Statutes of Limitations – laws that determine how much time you have to file a legal claim. Different types of injuries have different statutes of limitations. In Maryland and the District of Columbia the Personal Injury Statute of Limitations to file a claim is 3 years from the date of accident and in Virginia it is 2 years from the date of accident.
Personal Injury Claim Settlements are not taxable. Therefore; any monies awarded on a personal injury claim you do not have to claim on your taxes. The official statement from the IRS states:
“If you receive a settlement for personal physical injuries or physical sickness and did not take an itemized deduction for medical expenses related to the injury or sickness in prior years, the full amount is non-taxable. Do not include the settlement proceeds in your income.”