Articles Posted in Damages in Personal Injury Cases

One question frequently asked by our Tennessee automobile accident clients is why they have to repay their health insurance company out of any settlement they receive in their automobile accident claim.  The clients feel that they have paid for the health insurance for many years and, when they have to use it to pay medical bills arising from a car accident, the health insurance company wants its money back.  It seems unfair.

The reason that repayment of some amount is often necessary is because the health insurance contract has a “subrogation” or “reimbursement” provision that requires repayment  if you get a settlement of a personal injury case and the bills were incurred because of the injury covered by the settlement.  The power your insurance company has to enforce this provision depends on how it is written, whether it is governed by state or federal law, and other factors.

These provisions in health insurance contracts are now commonplace.  Indeed, it is the rare health insurance contract that does not have such a provision.   The laws that govern Medicare and Tenncare have similar provisions.

No.  Tennessee law does not permit the recovery of interest in personal injury or wrongful death lawsuits.

The only exception to this rule is if you win a case and a judgment is entered by the court you are permitted to recover interest.  Interest accrues at the rate set by Tennessee statute per year on the amount of the judgment that is unpaid.  The Tennessee General Assembly just lowered the amount of post-judgment interest, saving money for insurance companies and others.

The current post-judgment interest rate in Tennessee is 5.25%.  Under the former law, the interest rate was 10%.  The law changed July 1, 2012/

Tennessee law permits the recovery of lost wages in Tennessee automobile accident cases, truck accident cases, medical malpractice cases, and all other types of Tennessee personal injury claims.

Technically, the measurement of damages is referred to as "lost earning capacity."    This phrase is used in recognition of the fact that some people are, for whatever reason, under-employed at the time of their injury.  Thus, at least in theory, a claim for loss of earning capacity is not limited to damages as suggested by the victim’s current wages.

If the incident causes a permanent injury, the victim can also recover damages for lost future earning capacity.  Many times, expert witnesses must be employed to evaluate and quantify loss of future earning capacity.