Detailed Answer
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney in New Mexico for guidance on your specific case.
Calculating a fair settlement value for soft tissue injuries after a motor vehicle accident in New Mexico involves several steps. You must assess both economic and non-economic damages, apply New Mexico’s comparative negligence rule, and factor in policy limits and negotiation strategies.
1. Document Economic Damages
- Medical expenses: Sum all past and projected treatment costs, including emergency care, physical therapy, diagnostic tests, and medication. Keep bills and treatment plans.
- Lost wages: Calculate income lost due to missed work and estimate future loss if you have ongoing restrictions. Obtain pay stubs and employer statements.
- Out-of-pocket costs: Track transportation to medical appointments and any home care expenses.
2. Estimate Non-Economic Damages
Soft tissue injuries—such as whiplash or sprains—often lack permanent impairment but can cause significant pain and suffering.
- Multiplier method: Multiply total economic damages by a factor (commonly 1.5 to 5). Use lower multipliers for mild, short-lived pain; higher for chronic or more severe cases.
- Per diem method: Assign a daily rate (e.g., $100–$500) from the accident date through full recovery, then multiply by the number of days of pain.
3. Apply Comparative Negligence
New Mexico follows a modified comparative negligence rule (N.M. Stat. Ann. 1§ 41-4-12). If you are found up to 50% at fault, your award is reduced by your percentage of fault. If fault exceeds 50%, you cannot recover.
4. Consider Policy Limits and Liability Issues
Check the at-fault driver’s insurance policy limits. Rarely will an insurer pay more than their client’s coverage. If damages exceed limits, you may explore underinsured motorist coverage or personal claims against other responsible parties.
5. Negotiation and Finalizing
- Present a well-organized demand package: detailed medical records, billing summaries, wage loss documentation, and a calculation spreadsheet showing economic and non-economic figures.
- Start negotiations above your minimum acceptable value to leave room for counteroffers.
- Be prepared to mediate or file a lawsuit if negotiations stall.
For more on comparative negligence, see N.M. Stat. Ann. 1§ 41-4-12.
Helpful Hints
- Keep a pain journal detailing daily symptoms and limitations.
- Get independent medical examinations for unbiased injury assessments.
- Obtain a written cost estimate from medical providers for future treatment.
- Document all communications with insurers in writing and save emails.
- Consult a personal injury attorney if liability or damages are disputed.