Medical malpractice, personal injury, and other liability-based claims require a careful assessment of both liability and damages. While proving fault is critical, the economic viability of a case often determines whether an attorney will accept it. Attorneys must weigh the costs of litigation against the potential financial recovery.
A strong liability claim alone does not guarantee a successful lawsuit. If the damages suffered by the plaintiff are minimal, pursuing the case may not be financially feasible. This consideration is particularly important in contingency fee arrangements, where attorneys only get paid if the case results in compensation.
The Relationship Between Liability and Damages
A lawsuit consists of two essential components:
- Liability: Establishing that the defendant is legally responsible for the plaintiff’s injury.
- Damages: Quantifying the financial and emotional harm suffered by the plaintiff.
For a case to be viable, both elements must be strong. If liability exists but the damages are too low, the cost of pursuing the case may exceed the potential payout.
Example Scenario: Minor Medical Error with No Lasting Harm
A patient undergoes a routine medical procedure, and the doctor prescribes an incorrect medication, causing mild nausea for a few days. The doctor clearly made an error, establishing liability. However, the damages are minimal:
- Economic damages: A few days of discomfort requiring no additional medical treatment.
- Non-economic damages: Temporary distress, but no lasting physical or emotional suffering.
In this case, an attorney may decline to take legal action because the cost of litigation far outweighs the potential compensation.
Costs of Litigation vs. Expected Compensation
Litigation expenses can be substantial, including:
- Filing fees
- Expert witness costs
- Medical record analysis
- Depositions and court proceedings
If a case is expected to yield only a few thousand dollars in damages but requires tens of thousands in legal expenses, pursuing it would be impractical.
Example Scenario: Slip and Fall with Minor Injury
A grocery store negligently fails to clean a spill, causing a customer to slip. The customer sustains a minor bruise but does not require medical attention. While the store is clearly liable, the damages are almost nonexistent:
- Medical costs: None.
- Lost wages: None.
- Pain and suffering: Minimal discomfort.
An attorney will likely reject this case because even though the store was negligent, the lack of substantial damages makes litigation unwarranted.
The Role of Contingency Fee Agreements
Most personal injury attorneys work on a contingency fee basis, meaning they only receive payment if the client wins compensation. If the potential recovery is too low, attorneys risk investing time and resources without sufficient financial return.
Example Scenario: Low Settlement Potential
A car accident victim suffers minor whiplash with medical expenses totaling $500. While the other driver is at fault, the expected settlement may only be a few thousand dollars. Given that legal fees and court costs can quickly surpass this amount, an attorney may decline representation.
Exceptions and Alternative Legal Options
While some cases are not viable for litigation, clients may still explore small claims court, insurance negotiations, or mediation for minor disputes. Attorneys may also provide legal consultations to help plaintiffs understand their options.
Example Scenario: Property Damage Without Injury
A contractor negligently installs a faulty water heater, causing $3,000 in property damage but no personal injury. The homeowner may struggle to find an attorney willing to take the case on contingency. Instead, they may pursue compensation through small claims court, which is designed for lower-value disputes.
Factors That Strengthen a Case Despite Low Damages
While low damages often lead to case rejection, certain factors can make a case more attractive to attorneys:
- Clear negligence with potential for punitive damages
- Class action potential if multiple victims are involved
- Evidence of ongoing negligence that could impact others
Example Scenario: Nursing Home Negligence
A nursing home repeatedly neglects patients, leading to minor but recurring health issues. While an individual claim may not justify litigation, an attorney might pursue a class action lawsuit if multiple residents are affected.
How can we assist?
Attorneys must balance legal merit with financial feasibility when deciding which cases to accept. Even when liability is clear, a case may be rejected if the damages are insufficient to justify legal action. Understanding these factors can help potential plaintiffs assess their legal options and explore alternative solutions where appropriate.
The medical negligence lawyers at InjuryFromHospital.com are highly skilled in litigating medical malpractice claims across the country. The firm has the resources to take any medical malpractice case to trial. Additionally, the firm has an in-house board-certified OB-GYN doctor that reviews all medical malpractice cases and works collaboratively with the lawyers to develop appropriate case strategy.
Please contact us at 1 855-538-0863 today for a free consultation. If we accept your case, you will not be charged any fees unless we win or recover for you. NO WIN NO FEE!