It’s a simple question with a simple answer. Claimants wantmoney. How much is another question and varies depending upon theindividual situation and facts. Attempting to put a value on anindividual claim depends on the nature of it, the losses sustained,the liability issues which appear and how they may affect all ofthe parties involved, and more. While money is important, it iscertainly not always the only consideration.

In property damage situations it is somewhat easier to calculatethe losses sustained. For example, in a typical auto accident,physical damage to automobiles or trucks may often be calculated bylooking at the vehicle's damage and considering parts and laborcosts incurred for repairs. The matter may involve damageconsidered to be a total loss, and factors such as age andcondition could apply.

Professionals operating in major metropolitan areas like LosAngeles, New York, Chicago and Miami may have claims involvingexpensive autos. Situations where the vehicle is considered a totalloss and cash value is offered to the claimant may be moredifficult to settle. When a vehicle was relatively old but wasgood, dependable and rather inexpensive transportation for theowner, its low cash value may upset the claimant who feels thesettlement offered is insufficient to allow him to acquire similartransportation. Explaining the offer from the insurer’s view issometimes a difficult exercise. If the adjuster has some latitudewith respect to value, then reaching an amicable agreement is morelikely.

Aside from physical damage to a motor vehicle there are damagesto other property. Collisions between motor vehicles and houses,businesses and so forth do occur. If an enterprise is forced toclose for a period of time, business interruption issues must beassessed.

When considering personal injury claims, assessing the extent ofthe injuries and consequences often becomes more complex. In someinstances the injury is relatively obvious and provable, forexample a bone fracture can be seen on an x-ray. How it will healand whether there will be impairment and the degree of impairmentare another matter and may require some time before they areevident.

Soft tissue injuries can be harder to prove, as well as anyimpairment, which is often a matter of dispute and frequentlyinvolves conflicting medical opinions. Personal injury claims mayinvolve loss of income to the claimant and affect future ability towork at a particular occupation. Rehabilitation expenses may alsobe involved, in addition to pain and suffering.

While some claims for compensation when an individual is injuredmay be fraudulent, in reality many do suffer much discomfort and insome cases on a permanent basis.

Money and the measure of damages are important, but they shouldnot be the only consideration when settling a claim or lawsuit.Claimants are seeking what they believe is just compensation forinjuries and losses sustained as the result of actions or inactionsof others. However, this is not always their only interest. Whilefocusing on the ‘quantitative’ and how much, the ‘qualitative’relating to the incident may be lost in the shuffle.

Aside from interest in being compensated for losses sustained asthe result of acts or the failure to act by another, sometimes theparty sustaining the loss may want recognition and perhaps a degreeof heartfelt sympathy.

What does this cost? In reality, nothing and it may result inthe claimant agreeing to a settlement that would have cost morewithout some degree of compassion. This is not to suggest that mostadjusters do not already consider this, it is merely a reminder toperhaps enlighten those who are somewhat jaded about claims.

There was a situation involving a guest in a hotel who hadaccidentally slipped and fallen while attempting to enter anelevator. The hotel staff appeared but treated the situation in arather cavalier manner, showing little real concern for the guestwho had fallen – a bad response to the situation. Eventually itresulted in a claim which probably could have been avoided had moresincere concern been shown by the staff immediately after theincident.

In another litigated matter it appeared that the plaintiffsimply felt the need to prevail against the defendant. While thismay not necessarily be appropriate, if this had been recognized andconsidered earlier in the settlement discussions, the defendantmight well have settled the matter. Sometimes the claimant is notsimply looking for compensation, but is also seeking some degree ofsympathy or recognition of their view of the claim. If claimantsand their insurers can accept and recognize this, it may help toarrive at a settlement that benefits all parties. It is not alwayssimply a quantitative matter of how much, but involves qualitativeconsiderations of how the other party feels.

Is money important in settling claims? Absolutely, but there areoften other considerations involved. Under most circumstances theadjuster assigned to the matter has limited authority and oftenmust consult with a higher level claims manager when a demandexceeds authorized amounts. The adjuster, however, is in thetrenches and may have insights into the claimant’s thinking thatare not evident to someone on the other end of a telephoneline.

As an attorney representing an insured, there have been timeswhen the claims manager has not felt that the demand to settle isappropriate. Again the individual on the front line has theperspective of knowing what is important to an individual claimantand how the issue may be settled to the advantage of all. And whenlitigation can be avoided, almost always all parties win.

John Gregory Service is an attorney based in Boca Raton,Fla. He has been a member of the Florida Bar since 1974 and is alsoa Florida Supreme Court Certified Circuit and County Courtmediator. Service has been involved in mediation and arbitration asalternative methods of dispute resolution for more than 20 yearsand has extensive experience as a mediator in the circuit andcounty courts of Palm Beach County, Florida, and BrowardCounty.