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Why is Settlement Done as a Structured Settlement?

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What is the name of your state (only U.S. law)? PA

My husband has RSD--has been in treatment for about 1 1/2 years. His attorney has agreed to try to settle. My husband wants to get out of the W/C ordeal, it's just too much for him to handle. It's like he's in prison.

His attorney said if the Ins. Co. agrees to a settlement it will be a 'structured settlement' over the course of 8 years.
1) Why is that? Why isn't it a lump sum? My husband hasn't asked his lawyer because, honestly, they don't get along that well and he doesn't want to call him back just to ask this question. He also doesn't want to change lawyers at this point.

Also, RSD is a condition that can change over time. It can worsen, stay the same, lessen, and there could be a day when my husband just doesn't have any more chronic pain.

2) If a settlement occurs and my husband is one of the lucky ones where the pain disappears, is he allowed to work and still collect the balance of the settlement if he is in say, year 2 of 8 and the chronic pain disappears?

Thank you.
 


If a settlement occurs and my husband is one of the lucky ones where the pain disappears, is he allowed to work and still collect the balance of the settlement if he is in say, year 2 of 8 and the chronic pain disappears?

Thank you.
Do you have a settlement agreement? What does it say?

Perhaps it is structured because the insurance company realizes that the medical condition can go away. The insurance company probably does not want to pay anymore than they have to, and this is a method to ensure that they do not. After all, why should your husband get a windfall or overcompensated for his injury?
 
Do you have a settlement agreement? What does it say?

Perhaps it is structured because the insurance company realizes that the medical condition can go away. The insurance company probably does not want to pay anymore than they have to, and this is a method to ensure that they do not. After all, why should your husband get a windfall or overcompensated for his injury?

No we haven't gotten that far yet. The initial request for settlement has been sent to the IC's lawyer. My husband's lawyer mentioned it would be paid out as a structured settlement--he's going for about $140k. We just don't know how that works or why it's done that way. My husband didn't think to ask and they don't get along at all.
 
I would ask the lawyer, after all, he works for you. I do not know the reason your husband and the lawyer do not get along. I would suggest being cautiously trusting and not battling the attorney on every issue. From my experience, both parties will be much happier. However, it is your lawyer's job to explain everything to you because this is your money and your future.
 

Zigner

Senior Member, Non-Attorney
Do you have a settlement agreement? What does it say?

Perhaps it is structured because the insurance company realizes that the medical condition can go away. The insurance company probably does not want to pay anymore than they have to, and this is a method to ensure that they do not. After all, why should your husband get a windfall or overcompensated for his injury?
That makes absolutely no sense. :rolleyes: Once the settlement is reached, it can't be changed based on the OP recovering faster than expected.
 
Not if the OP or the OP's attorney has at least .05% of his/her brain cells functioning :rolleyes:
Why would you settle a worker's compensation suit for a lump sum or a structured settlement in the first place? It just seems risky, especially when the OP's condition is unclear.
 
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Why would you settle a worker's compensation suit for a lump sum or a structured settlement in the first place? It just seems risky, especially when the OP's condition is unclear.
But the condition is clear. RSD, left leg. RSD affects the sympathetic nerve system, and can become worse/better/stay the same for an unspecified amount of time. Treatment can become extremely expensive, if elected.

There are 4 doctors (2 of them are the W/C's drs) who have attested he has the condition. The treatment, if my husband elects it, includes up to 14 shots into the sympathetic nerve system at a cost of $3500 a pop, then if that doesn't work (they don't guarantee anything), an implant to block the pain, which costs $35k.

Wouldn't the IC want to settle instead of paying all that, plus his weekly benefits and prescriptions costs (one of his medicines costs $500/mo).

My husband just wants out of the W/C circus. He can't handle it. He feels like he's in prison, under house arrest, so he wants to settle, if possible. It's gotten to the point he'd rather deal with the pain then deal with W/C.

Thanks.
 
My husband's had it with his lawyer. He did nothing this week after promising to be extremely proactive and to follow up this week with the IC.

We're wondering, though, what would hiring a new lawyer entail?

Would it delay settlement proceedings?

Would the current lawyer bill us for anything? He has been receiving 20% of my husband's w/c check since April--about $200/month.

If the lawyer can bill my husband for anything, may that be added onto the settlement costs by the new lawyer?

Thank you.
 

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