Civil cases affect many individuals and companies alike, from property damage and contract disputes to injuries to individuals, debt collection and employment issues. Most often these lawsuits will provide some form of monetary relief for their participants.
Money awarded as part of a settlement can be used to cover costs such as outstanding bills or reimburse liens, as well as compensate for non-economic losses such as emotional distress, mental anguish and pain and suffering. But where is that money coming from?
Insurance Company
In most civil lawsuits, money awarded to successful plaintiffs comes from insurance companies, since those at fault typically purchase policies to cover potential injuries or deaths caused by accidents.
Establishing compensation for property damage, medical bills and lost income requires an accurate accounting of what has been spent or lost. More subjective damages like pain and suffering and lost quality of life may be harder to calculate; that’s where an experienced lawyer and their research can come in handy: they will look at past jury verdicts, current medical costs and other factors in an attempt to establish an appropriate value of a victim’s loss and have this number sent directly back to an insurer who will then pay out that sum directly; oftentimes this involves freezing bank accounts or placing liens against any real estate owned by them as soon as they have an appropriate number from them!
Bank Accounts
Plaintiffs awarded damages from successful legal cases are awarded damages that fall into two categories – compensatory and punitive damages. Compensatory damages put a dollar value on what was wronged. Sometimes this can be straightforward like when your car was insured but still lost; other times they require estimation such as loss income.
Civil lawsuits use juries and judges to award compensatory damages. Although this process can be relatively straightforward for repairs or medical expenses, awarding pain and suffering or lost enjoyment of life damages may prove more complex. Juries work closely with plaintiff’s attorneys in establishing what a fair value for such losses might be; this includes tallying bills incurred as well as estimates for other losses sustained; typically any significant assets, like retirement accounts or equity in homes are exempt from creditors collecting them from collections efforts.
Real Estate
Civil lawsuits generally resolve through negotiation. However, in certain instances financial awards may be awarded by a judge or jury after trial in court based on various criteria, including actual expenses like repairs to your car as well as estimated losses such as income losses. Such awards are known as compensatory damages and they can vary based on factors like actual expenses (like repairs) as well as estimated losses ( like lost income).
A plaintiff who wins a judgment may find it hard to receive their award because the defendant does not own it – they could be hiding assets or using laws which exempt certain types of property such as retirement accounts and home equity as means to escape paying up. So how will they find this money if it does exist?
Personal Property
Personal property can be defined legally as any object that can be transported from one location to the next, including tangible items like purses or wallets and intangible assets like copyrighted works and patents. Personal property usually falls into one person’s hands who then has the legal ability to transfer ownership through documents like bills of sale.
Civil lawsuits allow victims of accidents to pursue compensation for injuries incurred as a result. A jury or judge usually awards this sum during trial as “compensatory damages”, providing an equivalent financial measure for harm suffered.
How is Money Used in Lawsuits? Historically, lawsuit funding comes from the responsible party’s insurance provider; however, some people can easily hide large sums of cash in bank accounts or home equity; for this reason competent professionals always check a potential target’s assets prior to filing suit.