Detailed answer: how to calculate a fair settlement demand

When you or a loved one suffers a broken arm because of someone else’s negligence, the demand amount you send to the insurer should reflect the full value of your losses. A proper demand combines provable economic losses, a reasonable amount for non‑economic harm (pain and suffering), and case‑specific factors such as liability strength and comparative fault.

1) Start with economic (provable) damages

• Medical bills and itemized provider statements (ER, x‑rays, surgery, splints/casts, medications).
• Costs of future medical care reasonably needed (rehab, additional surgery, long‑term limitations).
• Lost income and lost earning capacity (wage statements, proof of missed time, employer letters).
• Out‑of‑pocket costs: travel for treatment, home help, medical devices.

2) Add non‑economic damages (pain, suffering, loss of enjoyment)

Oregon law does not require a single formula for pain and suffering. Common methods are:

• Multiplier method: multiply total economic damages by a number (often 1.5–3+ for a broken arm, depending on severity and permanence).
• Per‑diem method: assign a daily dollar value for pain and multiply by the duration of suffering.

3) Adjust for liability and comparative fault

Oregon reduces a plaintiff’s recovery by the plaintiff’s percentage of fault. That factor directly reduces the demand’s realistic value. See the Oregon statutes on negligence and related rules for more detail: ORS Chapter 31 (Negligence).

4) Consider insurance and policy limits

Many cases settle for the defendant’s available insurance limits. If the defendant has low limits, the practical maximum often equals that limit even if your damages are higher.

5) Account for risk, litigation cost, and attorney fees

A plaintiff weighing a demand must balance the certainty of a settlement against the risk, time, and expense of trial. Attorneys often work on contingency; typical fees and case costs reduce the net recovery, so initial demands often include an amount that leaves the client whole after fees and costs.

6) Present a demand package

A strong demand letter includes: a clear liability narrative, medical records and bills, wage documentation, photographs, a settlement figure with a deadline, and supporting legal authority when helpful. Insurers value documentation and clear causation more than emotion.

Hypothetical example (broken arm) — illustrative numbers

Facts: You fell due to a store spill. Treatment: ER visit, closed reduction, cast, 6 weeks in a cast, 8 PT sessions, and one follow‑up visit. You missed two weeks of work.

• Medical bills (ER, x‑ray, reduction, cast): $8,000
• Physical therapy and follow up: $1,500
• Future minor care (possible hardware removal or extra therapy): $2,500
• Lost wages: $2,000
• Total economic damages: $14,000

If the injury caused significant pain but no permanent impairment, a multiplier of 1.5–2.5 is common. That yields:

• Lower non‑economic estimate: 14,000 × 1.5 = $21,000 (total)
• Higher non‑economic estimate: 14,000 × 2.5 = $35,000 (total)

Practical demand strategy: start the demand a bit above the top realistic figure (e.g., $40,000–$50,000) to allow room for negotiation, especially if liability is clear and policy limits permit. If liability or causation is disputed, expect a lower initial offer.

7) Timing and deadlines

Don’t wait too long. Oregon has time limits to bring a lawsuit. See ORS Chapter 12 (Limitations) for statutory deadlines. Filing a lawsuit before the statute of limitations runs preserves leverage if negotiations stall.

Helpful hints — practical steps to set and support the right demand

• Track and preserve all medical records and bills. Insurers will base offers on documentation.
• Get a medical opinion about future care and lasting impairment; future costs increase settlement value.
• Document lost wages with pay stubs and an employer statement.
• Take photos of the injury, scene, and hazards that caused the accident.
• Obtain witness contact information and any police or incident reports.
• Consider an independent medical exam (IME) if the insurer requests one; consult before attending one arranged by the insurer.
• Start the demand higher than the minimum you’ll accept — insurers expect negotiation room.
• Ask about policy limits early. If limits are low, you may need to explore additional assets or alternative claims.
• Keep settlement deadlines reasonable. Short, well‑documented deadlines push responses faster.
• Talk to a personal injury attorney for a case evaluation and realistic valuation, especially if liability or damages are contested.