Christopher Collins 
After the death of a loved one due to someone else’s negligence, family members understandably begin to wonder what kind of compensation may be available. You might have come across articles mentioning different kinds of wrongful death lawsuit payout amounts, some of which reach seven figures. While cases involving substantial compensation do exist, the averages quoted across the web may create unrealistic expectations.
In this article, we question the usefulness of asking about an average wrongful death settlement. Here’s why averages aren’t truly representative and what factors can influence the actual value of a wrongful death case.
What Is the Average Payout in a Wrongful Death Suit?
There is no official nationwide or statewide average. The amounts of wrongful death settlements vary widely because every case is unique. They depend on numerous factors, such as liability and causation strength, the insurance coverage available, and how well surviving family members have documented their damages.
Furthermore, it also matters what data these figures are based on — wrongful death settlements reached during negotiations or jury verdicts? Some sources rely on incomplete information and selective examples. Thus, it’s necessary to question whether the average is a good way to assess possible amounts in the first place.
Why Average Wrongful Death Settlements Can Be Misleading
A few unusually large cases, known as outliers, can easily skew averages. If wrongful death settlements include a single multi-million-dollar payout, it can raise the average a lot, even though most cases settle for far less. So, a better way to think about wrongful death compensation is in terms of ranges and medians.
Average vs. Median vs. Range
Since “average,” “median,” and “range” are often used interchangeably online, let’s define and clearly differentiate them:
- The average is the figure you receive when you add up the outcomes of all cases and divide them by the number of these cases. For example, if four cases settle for $50,000 each and one case settles for $1 million, the average wrongful death settlement will be $240,000. Still, the majority of cases were resolved for far less.
- To calculate the median, you first list all wrongful death settlements from lowest to highest and then look at the middle position in the list. In the previous example, the median will be $50,000 because it’s the middle result once the numbers are ordered. This median figure tends to feel more fair and realistic because it reflects what most cases actually look like.
- The range shows the spread of outcomes, from the lowest wrongful death lawsuit payout to the highest one. So, it simply reflects the boundaries of what’s possible. Some wrongful death cases resolve on the lower end because liability is disputed or insurance coverage is limited. Others resolve on the higher end because the fault is clear, the losses are well documented, and there’s enough insurance or assets to pay a larger amount.
Settlements Reached Before Trial vs. Jury Verdicts
Another aspect that matters when trying to understand the values of wrongful death claims you see online is what kind of outcomes are being used for the statistics. Here, it’s necessary to ask whether these figures were drawn from wrongful death settlements reached before trial or as jury verdicts in court, or a combination of both.
This is important, as wrongful death settlements reached before trial are usually private, which means the amounts aren’t publicly available. And because these figures aren’t fully accessible, they’re often missing from the data used to calculate commonly cited average figures.
Jury verdicts, on the other hand, are public, which is why they tend to appear in news stories and online verdict databases. However, verdicts only reflect cases that went to trial, but many wrongful death claims are resolved during negotiations.
It’s also important to mention that the verdict amount isn’t always the amount that gets paid. After a trial, this figure can be reduced. For instance, courts can change the verdict in response to post-trial motions, such as arguments that the award wasn’t supported by the evidence.
That is why, rather than focusing on particular numbers, it’s more helpful to understand all of the possible aspects that can impact the final wrongful death case outcome.
The Biggest Value Drivers of Wrongful Death Lawsuit Payouts
So, what exactly impacts how much a wrongful death case is worth? Let’s begin with some of the biggest value drivers:
- How solid the proof is that the defendant was legally responsible (liability) and that responsibility caused the death (causation)
- The amount of monetary damages caused by the incident
- The scope of non-economic damages the family suffered after the death
- Insurance limits and collectability.
Liability and Causation
One of the first questions in any wrongful death case is: who is at fault, and can this fault be clearly proven?
The claim has to show the following: the other party had a duty to act safely (duty of care), they failed to do so (breach of duty), and that failure actually caused the death (causation). Any dispute or difficulty in proving these points could potentially reduce the case’s overall value.
Unclear causation can often complicate such legal cases. The defense may argue that the death was caused by a pre-existing medical condition or a combination of factors rather than the defendant’s actions alone. When there are multiple possible causes, it becomes harder to draw a line from the defendant’s actions to the loss.
In complex cases, independent expert opinion may be necessary. Medical experts or accident reconstruction specialists (in car accident claims) may be involved to clarify liability and causation.
Insurance Limits and Collectability
Another factor that has a major impact on wrongful death settlements is how much money is actually available to pay a claim. In many cases, the defendant is covered by an insurance policy, like auto insurance, business liability insurance, or medical malpractice coverage. Such policies usually have a maximum limit, so even if the case is very strong, the amount that can actually be recovered may not go beyond that limit.
Thus, wrongful death settlements might be worth a specific amount in theory, based on the harm suffered. It’s a paper value. But there’s also a recoverable value — what can realistically be collected, based on insurance coverage, as well as the defendant’s personal or business assets.
Types of Damages That Determine the Total Amount
Damages must be established to determine the total wrongful death settlement amount, along with liability and causation. Wrongful death damages in Massachusetts are regulated by General Laws Chapter 229, Section 2, and here’s what families may be compensated for after the loss of a loved one:
- Lost financial support: This is the compensation for the money the person would likely have earned and used to support their family, minus personal living expenses.
- Loss of services: This covers the everyday help the person provided, such as household work, childcare, or other regular support.
- Funeral and burial services: These include reasonable expenses related to the ceremony.
- Non-monetary losses: This reflects the loss of the person’s presence in the family, including companionship, comfort, guidance, care, protection, assistance, counsel, and advice the deceased would have continued to provide.
- Punitive damages: This type of compensation can be awarded in cases that resulted from severe negligence or extremely reckless actions.
Can Punitive Damages Increase the Payout?
Unlike other damages, which are meant to compensate a family for their loss, punitive damages are intended to penalize especially dangerous behavior and help prevent it from happening again. Punitive damages are typically only considered in cases involving gross negligence, reckless disregard for safety, or intentional misconduct. Thus, if the case qualifies under the law, punitive damages may apply, too.
It’s also worth noting that punitive damages are regulated differently in different states. In some states, these damages aren’t available in wrongful death cases. In Massachusetts, they may be available depending on the details of the case.
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State Law Variables That Change Outcomes
Looking at average wrongful death settlements nationwide, not by state, can also be misleading. Wrongful death laws vary from state to state, and punitive damages are only one of the examples.
Damage caps can differ. Although in Massachusetts, the law doesn’t set an explicit cap for compensatory damages in wrongful death claims, some other states do. These limits impact wrongful death settlements, which makes any nationwide “average” unrealistic and unreliable.
Furthermore, a fatal injury may give rise to both a wrongful death claim and a survival action. The goal of the latter is to recover damages for what the deceased person went through before death, such as pain and suffering, as well as medical expenses related to treating their injuries.
In Massachusetts, wrongful death and survival actions are treated as separate claims and governed by different chapters of the law. Some states, however, don’t separate these cases at all and combine losses, while in other states, families may have to choose between a wrongful death claim and a survival action. All of these wrongful death vs. survival action matters may impact the final case outcomes.
States also assign fault and determine how this impacts compensation differently. In states that follow some form of comparative negligence, like Massachusetts, the wrongful death settlement amount may be reduced if the deceased is found partly responsible. In others, even a minor amount of fault can make it impossible to recover anything. This is one more factor that can affect the final wrongful death settlements paid.
Gross vs. Net: What Comes Out Before Families Are Paid
Finally, the compensation recovered should be considered from the perspective of gross vs. net. Once the compensation is established, additional deductions may apply, impacting the final wrongful death settlement amount.
For instance, most law firms handle wrongful death cases on a contingency fee basis. This means the attorney’s fee is a percentage of the recovery and is only paid if the case succeeds. The exact percentage should be clearly spelled out in a written fee agreement. Case costs, such as filing fees, expert witness fees, and investigation costs, can also be deducted according to the agreed terms.
In some cases, health insurers or medical providers have a legal right to be paid back for medical bills they covered after the injury. These liens need to be resolved before the settlement money is distributed. It’s important to receive a written breakdown of how liens and other deductions may affect the final payout.
Our clients also frequently ask, “Are wrongful death settlements taxed?” Taxation depends on the types of damages awarded. Both state and federal laws should be taken into account. In the majority of such cases, the compensation is not taxable in Massachusetts. However, you might need to consider taxes when it comes to punitive damages or inheritance through the estate.
What Average Payout Can You Expect in a Wrongful Death Lawsuit?
There’s no single average number that could be representative of such cases because not enough settlements and verdicts are public, and many estimates don’t differentiate between different types of resolutions. Plus, wrongful death settlements can be influenced by a wide range of factors, such as:
How clearly the defendant can be shown to be at fault. How strongly the evidence connects the defendant’s actions to the fatal outcome. The nature and scope of financial and personal losses suffered. How well those losses can be documented and supported. Whether the case qualifies for them under state law. How fault is divided among parties and how that division affects compensation. The amount of insurance money potentially available to pay the claim. Whether funds can realistically be recovered beyond insurance. Possible legal adjustments that may lower a jury award. Deductions that affect the final amount a family receives.
Ultimately, wrongful death cases are highly individual, and there’s no single number that fits every situation. If you have questions about your potential claim, particularly what wrongful death settlements may be worth in situations like yours, we’re here to help.
At Michael Kelly Injury Lawyers, we have experience handling wrongful death cases across Massachusetts. Contact us for a free consultation, and our wrongful death lawyers will walk you through your options, provide an assessment of what your case may be worth, and help pursue the compensation your family may be entitled to.
