Detailed Answer: How to pick a fair demand amount

1. Start with the basics: categories of damages

A settlement demand typically combines two main categories:

• Economic damages (special damages): past and future medical bills, rehabilitation costs, prescription expenses, lost wages and lost earning capacity, out-of-pocket costs (transportation, home help).
• Non‑economic damages (general damages): pain and suffering, emotional distress, loss of enjoyment of life, scarring or permanent impairment.

2. Document and total your economic damages

Collect medical records, itemized bills, receipts, and wage records. Add three groups:

1. Past medical expenses to date.
2. Reasonable estimate of future medical treatment tied to the broken arm (orthopedic visits, physical therapy, possible surgery, durable medical equipment).
3. Past lost wages and a reasonable projection of future lost earnings if you miss work or have reduced capacity.

Example (hypothetical): medical bills $15,000 + anticipated future care $5,000 + lost wages $6,000 = $26,000 economic damages.

3. Estimate non‑economic damages

Hawaii courts allow recovery for pain and suffering. There is no fixed formula mandated by statute, so practitioners commonly use one of two methods:

• Multiplier method: Multiply total economic damages by a factor (commonly 1.5–5.0). Use a lower multiplier for minor, short‑lived injuries and a higher multiplier for severe, permanent impairment. For a typical isolated broken arm that heals well with limited long‑term impairment, multipliers often range from 1.5 to 3.0. If the fracture caused permanent loss of function, a higher multiplier may apply.
• Per‑diem method: Assign a daily dollar amount for pain and suffering (e.g., $100–$500 per day) and multiply by the number of days the plaintiff experienced pain and functional limits. This method requires a clear record of recovery timeline.

Using the example above: $26,000 economic × multiplier 2.0 = $52,000 non‑economic. Total demand = $78,000.

4. Adjust for other important factors

• Comparative fault: Hawaii reduces recovery by the plaintiff’s percentage of fault if any. If you were 10% at fault, a $78,000 recovery becomes $70,200 after reduction. (See Hawaii statutes and case law resources for negligence rules: Hawaii Revised Statutes.)
• Insurance policy limits: The defendant’s insurance may cap recoverable damages. If the at‑fault driver’s policy limit is $50,000, you likely cannot collect more from that insurer even if your damages exceed that amount.
• Liens and subrogation: Health insurers, Medicare/Medicaid, or private lienholders may have claims against your settlement. Account for likely lien amounts so your net recovery is realistic.
• Settlement posture and negotiation cushion: Many claims are negotiated. Initial demand typically exceeds the lowest acceptable number. Practitioners often start with a demand 25–50% above the expected settlement to leave room for negotiation while keeping the amount reasonable.
• Severity, permanence, and subjective factors: Long-term stiffness, reduced range of motion, scarring, or impact on hobbies and childcare increases non‑economic value. Younger patients with longer life impact may justify higher demands.

5. Practical, hypothetical calculation

Hypothetical scenario: 35‑year‑old with a displaced radius fracture requiring ORIF (surgery), 8 weeks off work, physical therapy, and mild residual stiffness.

• Past medical bills: $22,000
• Future medical needs (therapy/possible hardware removal): $3,000
• Lost wages: $9,000
• Total economic = $34,000
• Apply multiplier 2.5 for significant surgery and weeks of disability → non‑economic = $85,000
• Initial demand = $119,000. If defendant’s limit = $100,000, adjust strategy accordingly.

6. Timing, demand letter content, and process in Hawaii

Prepare a clear demand letter that includes:

• Summary of facts and liability evidence (photos, police report, witness statements).
• Itemized economic damages with attached medical bills and wage documentation.
• Explanation and support for non‑economic damages (treatment notes, functional limitations, daily life impact).
• Specific monetary demand and a deadline for response.

Send the demand to the at‑fault party’s insurance adjuster and keep all correspondence. If settlement does not resolve the claim, you may file a lawsuit. Be mindful of Hawaii’s time limits to sue—check the Hawaii Revised Statutes and consult counsel to confirm the applicable statute of limitations.

7. When to consult an attorney

Talk to an attorney if:

• Injuries are severe, require surgery, or cause permanent impairment.
• Liability is contested or comparative fault is an issue.
• Multiple insurers, health‑care liens, or catastrophic exposure exist.
• You want help valuing future damages and negotiating for a net recovery after liens.

For general resources about Hawaii civil procedure and statutes, see: Hawaii State Judiciary and the Hawaii Revised Statutes.

Helpful Hints

• Keep a single organized file (paper or digital) with all medical records, invoices, paystubs, and photos of the injury and accident scene.
• Track out‑of‑pocket costs and a daily pain diary (dates, activities you couldn’t do, symptoms) to support non‑economic claims.
• Request itemized bills and CPT/ICD codes from providers so future treatment costs are defensible.
• Ask providers whether they will place a lien against any settlement—know expected reductions to your gross recovery.
• Start with a realistic but robust demand; insurers often negotiate downward from the initial demand rather than upward from a low opening offer.
• Consider the defendant’s policy limits early. If limits are lower than your damages, decide whether to pursue the defendant personally or seek additional recovery sources.
• Don’t sign releases or accept final payment before confirming lien obligations and ensuring the amount reasonably compensates you net of liens and fees.
• If you hire an attorney, understand fee structure (contingency fees are common in personal injury cases) and who will advance costs.