Most FELA claims reach a settlement. One law journal reported that only 1.1% of FELA claims go to trial, meaning most railroad workers who are injured on the job will receive a settlement.
It’s important for injured workers to know what to expect from your FELA settlement.
Attorney Daren Sarphie of Sarphie Law explains.
What should I expect from my FELA settlement?
A FELA settlement is a complete resolution of your railroad injury claim. It includes all types of compensation, including medical bills, lost income, pain and suffering, and other damages.
Expect to sign the settlement and release all claims relating to your workplace injury.
Introduction to FELA Settlements
A FELA settlement is a resolution of a FELA claim.
A FELA settlement is:
- Voluntary. The parties both agree to resolve a case by settlement.
- Unique. A FELA settlement is specific to the case. The parties agree on the amount and terms.
- Final. It is a complete resolution, inclusive of current and future damages.
- Flexible. It can be reached with or without formal court proceedings.
A FELA settlement is not:
- Guaranteed. You must bring your case and prove your right to compensation.
- Automatic. You must negotiate your award.
- Easy. It’s important to build your case and proof of damages.
When you reach a FELA settlement, you agree to resolve all claims relating to a work injury.
That means everything—economic and non-economic losses. It means losses you have already incurred and future losses. You won’t have future court dates, and you can’t reopen the case later if something changes.
Negotiating a FELA Settlement
Knowing that a FELA settlement is final, negotiating it is extremely important. Your attorney may speak with the opposing counsel, or they may communicate in writing. A negotiation is strategic—your attorney determines what offer to extend. They may voluntarily share information to help facilitate a settlement and may advise you on whether to accept a settlement offer.
A negotiated settlement is not complete until it has been signed by all parties. If proceedings have already begun in court, the settlement must be entered into the record.
Alternative dispute resolution
Settlement negotiations may involve alternative dispute resolution or mediation. You can participate in mediation whether or not a formal court case has been filed. In mediation, you talk about settlement with the guidance of a trained mediator. Mediation is not appropriate for every case, and your attorney will be present if you choose to participate.
Understanding the Components of a Settlement
There are several components of a FELA settlement.
Types of compensation
FELA is not the same as state workers’ compensation. There are more types of compensation that are available for railroad workers than are available in workers’ compensation. Damages are the basis for determining what settlement you should negotiate. Because non-economic damages are allowed, compensation amounts can seem high as compared to other types of injury claims.
Proof of negligence
In FELA law, the injured worker must prove employer negligence. The negligence must have contributed to the injury, even if only in a slight way. Evidence proving negligence may factor into the value of a FELA settlement.
Contributory negligence
Shared fault is a part of FELA law. If you are partially to blame, your settlement may be reduced.
Many employers point to contributory or comparative negligence to reduce compensation but don’t be fooled by allegations alone. Your attorney can evaluate whether contributory negligence is a factor and how it may impact a settlement.
Contributions and set offs
FELA allows the employer to set off any sums contributed or paid or relief benefits paid. This means that if your health insurance pays for part of your medical care, you don’t recover that amount. This law encourages employers to offer insurance and take out policies that can cover expenses for injured workers. (See 45 U.S.C. § 55.)
Future losses and damages
When injuries are anything more than minor, future losses and damages are likely. It may take time to determine the prognosis, but future pain and suffering should be included too. Disability and disfigurement compensation may be appropriate.
There’s no way to go back and ask for more compensation after your FELA settlement so your settlement must be thorough.
Case preparation
Building a strong case is an important part of reaching a fair settlement. This may seem counterintuitive. Why prepare a strong case if you’re negotiating a settlement? The other side needs to know that you’re willing and able to go to trial if necessary. They need to know that you’re going to investigate every aspect of the case. Armed with strong evidence, you can aggressively pursue a fair settlement, while being ready to go to court.
Structure
A FELA settlement may be paid in a lump sum, or it may be structured. What is best depends on your specific situation.
Timeline for Receiving Your Settlement
A settlement should include a timeline for payment. It may be as fast as five days, but 14 to 30 days is common. The time from when you are first injured to the time that you receive your settlement may vary depending on how complex the case is and how severe the injuries are. A straightforward case may be resolved in as little as 90 days while a complicated case that requires litigation may take one year or more.
You don’t want to rush to a settlement. That can mean getting too little for your claim. There may be sick pay and other benefits that can help while you are waiting. Attorney Daren Sarphie can discuss the timeline for receiving your FELA settlement and can explain what developments in the case may alter the timeline.
Tax Implications of FELA Settlements
The portion of a FELA settlement that represents lost wages is subject to taxation. See BNSF Railway Co. v. Loos, 139 S.Ct. 893 (2019).
Contact an Experienced FELA Claims Lawyer Today
Your FELA settlement will impact your future so ensure an experienced FELA claims lawyer explains what to expect from your FELA settlement. Contact Sarphie Law for your free consultation.