by John Darer CLU ChFC MSSC CeFT RSP CLTC
A Structured Settlement is NOT an Award
A structured settlement is a compromise
A structured settlement may be part of the compromise. There has to be a “meeting of the minds”. There has to be an agreement. The settlement agreement is a contract which may bar plaintiff from from seeking further compensation for their injury.
What is a Contract?
A contract is an agreement between parties, creating mutual obligations that are enforceable by law.
The basic elements required for the agreement to be a legally enforceable contract are:
- mutual agreement, expressed by a valid offer and acceptance;
- adequate consideration;
- capacity and legality.
Source: Legal Information Institute, Cornell Law School, Ithaca New York
Why an Award is different from a Settlement in a Workers Compensation Case
“An award, on the other hand, is granted to you by the workers’ compensation court. This may include medical benefits or other types of workers’ compensation awards based on the specifics of your injury. For example, a judge can order — or an insurance company can admit for — temporary and permanent disability benefits. This isn’t a settlement. You don’t have to sign away any rights to get these benefits”. Source: Eley Law Firm Denver Colorado
Why an Award is Different from an Award in a Personal Injury Case?
A personal injury award is the amount of money owed to a plaintiff, as decided by a judge or jury. Source: Yosha Law Firm South Bend, Indiana
Why an Award is Different from a Settlement in a Wrongful Death case?
“Trial verdict awards in wrongful death cases refer to the compensation that the plaintiff (the surviving family members or dependents) receives if the case goes to trial. The compensation is awarded by a jury or a judge, depending on the jurisdiction” Source: McKay Law Sulphur Springs and Dallas Texas
What is Award in the Legal Dictionary?
A judicial decision after consideration; a judicial sentence.
Don’t Some Settlements Require Court Approval?
Yes, some settlements do require a judge’s approval. This is often the case when the settlement involves a minor, or a person under disability, or when a receiver is involved who has not been given authority to settle litigation without subsequent court approval. The court will review the settlement to ensure it is in the best interest of the estate, minor(s) or the person(s) under disability. That however, does not make them an award. What the judge is reviewing is the settlement compromise that has been negotiated between the parties to the settlement.
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