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A Mystery

Some people love mysteries. Not me. Oh, I’ll read a book every now and then and can enjoy a good movie with friends. But “life’s little mysteries?” Nope, they drive me nuts. Lately one in particular has been bothering me; let me share some facts and we’ll see if you can spot what the mystery is:

Last month a client sent me the latest issue of Claims Journal Magazine which contained an article entitled “Benefits of Using Structured Settlements in Claims Negotiations” by Denise Johnson.1 Ms. Johnson writes:

“…tax-free and tailored to fit the needs of the claimant, structured settlements are a powerful tool claims personnel can use when resolving claims. Besides being used to address high value bodily injury exposures, structured settlements can be used to push past issues that stall negotiations.”

No mystery here; I agree with Ms. Johnson.

In the same month, current American Bar Association President, William T. Robinson, wrote in “For the Defense”:2

“I have believed for many years that the structured settlement is an important tool of negotiation. Actually, I would go further and suggest that trying to resolve a case involving injuries of any seriousness almost requires a structured settlement. The reason I think is that generally because once the liability issue is resolved, the arguments about the value of a lost life or lost limb is generally very unpleasant and distasteful. But if the lawyer can move the negotiation to how those injuries or limitations can be dealt with going forward, he or she will put the dialog on a much better, more productive level. A structured settlement professional can help do that”.

No mystery there either; I agree with Mr. Robinson too.
Then someone asked Past President of the California Trial lawyers’ Association Douglas deVries what he thought about structured settlements. He said:

“Unfortunately, during nearly 30 years representing accident victims and their families, I’ve seen too many cases where lawsuit settlements are lost due to risky investments and high-pressure sales tactics. That’s why regardless of how serious an injury is, I urge my clients to consider a structured settlement. The financial security one provides is extremely important because it allows the accident victim to focus on the important task of pulling their lives back together.”

It is no mystery that I agree with Mr. DeVries also. By now you are saying “I thought you were going to reveal a mystery?” Patience…

Finally, in Croswell Michigan, a truck veered into oncoming traffic and injured three members of Barbara Bradley’s family. After lengthy negotiations, the case was finally resolved. Ms. Bradley had something to say about structured settlements too:

“As we looked at options for our lawsuit settlement, the structured settlement stood far above everything else. We wanted guarantees. We wanted security. And we didn’t want to have to worry about sudden economic changes. We were so impressed with the structured settlement that, as a condition of settling our lawsuit, we demanded and received not one but three structured settlements. One for each family member who was hurt, these have helped our family meet our living needs.” 3

Despite the collapse of the financial markets in 2008, stubborn high unemployment, frustratingly slow growth in the economy, the home mortgage “overhang,” and heightened concern over “sovereign debt” in the European Union, there is ONE financial strategy that even these traditional adversaries remain united in support of: the structured settlement.

So what’s the mystery? When a national claims publication, nationally recognized defense lawyer, nationally recognized plaintiff’s attorney, and surviving wife and mother all agree that structured settlements are uniquely well-suited to resolve claims and support the ongoing needs of seriously injured claimants…I want to know why every single injury case is not settled this way!

Some claim professionals and attorneys (on both sides) even have reasons why they don’t structure cases. Eureka! I just figured it out: The people who today cite “reasons” why they don’t structure cases are the VERY same people who have NEVER structured cases!

Clearly they don’t understand how structures work and have never seen them in action, because my clients who have seen structures work never forget them. And, perhaps more importantly, the claimants whose checks continue to arrive every month, just as designed, never forget them either.

Want to take some of the “mystery” out of resolving difficult cases? Try a little magic of your own: call Frank C. Kilcoyne, CSSC at 800-544-5533. I am here to help.

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1Denise Johnson, “Benefits of Using Structured Settlements in Claims Negotiations,” Claims Journal (October 2011)
2William T. Robinson, “Structured Settlements and the American Justice System,” For the Defense, October, 2011
3National Structured Settlements Trade Association, “Structured Settlements In Their Own Words”