When a Buffalo resident is owed damages following a personal injury accident, they do not always receive this money in one lump sum payment. New York State Law has specific provisions governing how future damages are paid.
Under the law, plaintiffs are entitled to payment of all past damages, attorney’s fees, and other expenses associated with the case in a single payment. If future damages awarded by the jury are less than $250,000, they also are included in this lump sum payment.
When future damages exceed $250,000, these rules change. The plaintiff still receives the first $250,000 as part of the initial payment, but the remainder is paid off over time. These payments usually are made in monthly installments. The formula used to calculate these future payments, however, is somewhat complicated.
Generally, the judge must look at how many years of future damages the jury stated its decision was based on. The annual payment for the first year is calculated by dividing the remaining future damages by the time specified by the jury. Annual payments after the first year are calculated by adding 4% to the prior year’s payment.
If damages were awarded for future pain and suffering, this portion of future damages may also be handled differently. Future damages for pain and suffering must be paid off in no more than ten years. If the jury based their future damages calculation on a longer time period, future pain and suffering damages will be calculated separately and paid out over a ten year period.
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