Negotiating Settlements in Aviation Accidents: What You Need to Know

The aftermath of an aviation accident is a chaotic and stressful time. Beyond the physical and emotional trauma, victims and their families often face a complex legal landscape. Negotiating a fair settlement in an aviation accident case requires understanding liability, damages, and the unique aspects of aviation law. In 2021, the average value of a life lost in a US general aviation accident was $5.2 million, highlighting the potential for significant compensation. This blog post provides essential information to navigate the settlement negotiation process effectively.

Understanding Liability in Aviation Accidents

Determining liability is the first crucial step in negotiating a settlement. Unlike car accidents, aviation accidents often involve multiple potentially liable parties. These may include:

Airlines: Responsible for maintaining safety standards, proper aircraft maintenance, and pilot training. Negligence in these areas can lead to liability.
Aircraft Manufacturers: Liable for damages caused by defects in the aircraft’s design or manufacturing.
Maintenance Companies: Responsible for ensuring the aircraft is properly maintained and safe for flight.
Air Traffic Controllers: Accountable for providing safe and efficient air traffic control services. Errors in air traffic control can cause accidents.
Pilots: Responsible for operating the aircraft safely and following all regulations. Pilot error is a common cause of aviation accidents.

Proving Negligence:

To establish liability, it’s essential to prove negligence on the part of the responsible party. This involves demonstrating:

Duty of Care: The party had a legal obligation to ensure the safety of others.
Breach of Duty: The party failed to meet their obligation.
Causation: The breach of duty directly caused the accident and resulting injuries or damages.
Damages: The accident resulted in tangible losses, such as medical expenses, lost wages, and pain and suffering.

Evidence is the foundation of any negligence claim. This might include flight data records, maintenance logs, eyewitness testimonies, and expert reports. Aviation experts can analyze the available data and provide testimony on whether standard procedures and practices were breached.

Types of Damages Recoverable in Aviation Accident Settlements

Victims of aviation accidents can pursue various types of damages to compensate for their losses. These damages typically fall into two categories:

Economic Damages: These compensate for quantifiable financial losses resulting from the accident. This includes:
- Medical Expenses: Current and future medical bills, including hospital stays, surgeries, rehabilitation, and medication.
- Lost Wages: Compensation for lost income due to the inability to work. This includes past and future lost earnings.
- Loss of Earning Capacity: If the injuries reduce the victim’s ability to earn wages they previously earned, they may receive compensation for loss of earning capacity.
- Property Damage: Compensation for damaged or lost personal property.
- Funeral Expenses: In cases of wrongful death, families can recover funeral and burial costs.
- Non-Economic Damages: These are awarded for the subjective, non-monetary consequences of an accident, which include:
- Pain and Suffering: Compensation for physical pain and emotional distress caused by the accident.
- Emotional Distress: Compensation for mental anguish, anxiety, and other psychological trauma.
- Loss of Consortium: Compensation for the loss of companionship, affection, and intimacy suffered by family members due to the victim’s injuries or death.
- Diminished Quality of Life: Compensation for the reduction in the victim’s ability to enjoy life’s activities.

Punitive Damages:

In some cases, punitive damages may be awarded if the conduct responsible for the crash was particularly reckless or egregious. These damages are meant to punish the defendant and deter similar behavior in the future. However, many states prohibit punitive damages in wrongful death actions, and some states that permit punitive damages have set caps on those damages.

Factors Influencing Settlement Amounts

Several factors can influence the amount of compensation you may receive in an aviation accident settlement:

Severity of Injuries: More severe injuries typically result in higher settlements due to increased medical expenses, lost income, and pain and suffering.
Clarity of Liability: If liability is clear and the responsible party is easily identifiable, the settlement amount is likely to be higher.
Insurance Coverage: The amount of available insurance coverage can impact the settlement amount. Multiple policies may be involved, especially when multiple parties share the blame.
Jurisdiction: Different jurisdictions have varying compensation schemes for victims of aviation accidents. Some states may have caps on certain types of damages.
Expert Testimony: Expert witnesses, such as aviation experts, engineers, and economists, can provide valuable testimony to support your claim and increase the settlement amount.
Negotiation Skills: The ability to effectively negotiate with the insurance company or responsible party can significantly impact the outcome of the settlement process.

The Negotiation Process

Settlement negotiations should only begin after enough materials have been obtained to provide counsel with an accurate view of both potential liability and damages. Settlement negotiations provide an opportunity to show the value of the case to the other side. While it is a goal of both parties to approach settlement discussions from a position of strength, the parties should be realistic about the weaknesses of their case and address them from the outset. The negotiation process typically involves the following steps:

Initial Demand: Your attorney will send a demand letter to the responsible party or their insurance company, outlining the details of the accident, the extent of your injuries and damages, and the amount of compensation you are seeking.
Investigation and Discovery: The insurance company will investigate the accident and may request additional information from you. Your attorney will also conduct their own investigation and gather evidence to support your claim.
Settlement Offers and Counteroffers: The insurance company may make an initial settlement offer, which is often lower than what you are seeking. Your attorney will review the offer and advise you on whether to accept, reject, or make a counteroffer.
Mediation: If negotiations stall, mediation may be an option. Mediation involves a neutral third party who helps facilitate a settlement agreement between you and the responsible party.
Trial: If a settlement cannot be reached, your attorney may recommend filing a lawsuit and proceeding to trial.

The Role of an Aviation Accident Attorney

Negotiating a settlement in an aviation accident case can be complex and overwhelming. An experienced aviation accident attorney can provide invaluable assistance throughout the process. An attorney can:

Investigate the Accident: Conduct a thorough investigation to determine the cause of the accident and identify all liable parties.
Gather Evidence: Collect and preserve evidence to support your claim, including flight data recorders, maintenance logs, and witness statements.
Consult with Experts: Work with aviation experts, engineers, and other professionals to analyze the evidence and build a strong case.
Negotiate with Insurance Companies: Handle all communications with the insurance company and negotiate a fair settlement on your behalf.
File a Lawsuit: If necessary, file a lawsuit and represent you in court.
Provide Legal Advice: Offer guidance and support throughout the entire legal process.

Statute of Limitations

It’s crucial to be aware of the statute of limitations, which dictates the time frame within which a claim must be filed to preserve the claimant’s legal rights. The statute of limitations for aviation accident claims can vary depending on the location of the accident and the type of claim. For example, in New York, the statute of limitations for most personal injury claims, including those arising from aviation accidents, is three years from the date of the injury. For wrongful death claims, that window shortens to two years. However, federal laws, such as those outlined in the Montreal Convention for international flights, may dictate alternative deadlines. Missing the deadline can result in the permanent loss of legal remedies.

Taxation of Settlements

The IRS allows exemptions for the compensation victims get for the costs of physical injuries and illnesses (e.g., medical bills and lost wages), but it can still tax compensation for non-physical injuries, such as emotional distress. You should always talk to your attorney about the specific rules regarding settlement exemptions before you settle any injury claim so you know what to expect.

Conclusion

Negotiating a settlement in an aviation accident case requires a thorough understanding of liability, damages, and the legal process. By working with an experienced aviation accident attorney, you can protect your rights and pursue the compensation you deserve. Contact our firm today for a consultation.