Risk in countering a counter-offer for damages?

[HenryLacroix]

Jurisdiction

Washington

My friend's neighbor's condo caught fire, filling my friend's unit with smoke while I was there. I suffered smoke inhalation. My demand letter included a detailed description of what happened, emotional/financial harm, and a request for $9,500. The claims adjuster just countered with an offer for $5,000.

Is there any risk at all in countering their counter-offer? I would settle for $5,000 if I absolutely had to, but feel around $8,000 would be fair. Is there any possibility that if I countered for a larger amount, I could lose even the $5,000 offer?

This seems extremely unlikely but would just like to make absolute sure.

Thanks,
Henry

 

[army judge]

My friend's neighbor's condo caught fire, filling my friend's unit with smoke while I was there. I suffered smoke inhalation. My demand letter included a detailed description of what happened, emotional/financial harm, and a request for $9,500. The claims adjuster just countered with an offer for $5,000.

Is there any risk at all in countering their counter-offer? I would settle for $5,000 if I absolutely had to, but feel around $8,000 would be fair. Is there any possibility that if I countered for a larger amount, I could lose even the $5,000 offer?

This seems extremely unlikely but would just like to make absolute sure.

Thanks,
Henry

You can usually make a counter-offer.

If you had retained a lawyer, the first offer would have been around $15,000, or more.

Maybe you should discuss your situation with a couple lawyers in your county and discover if your position could improve with legal representation?

 

[adjusterjack]

Is there any risk at all in countering their counter-offer?

Of course there is a risk.

There is a risk that the claim rep will just rescind the offer (or just stick with the $5000 offer) and close the file and wait for you to make the next move.

Fair is where you go on rides and eat cotton candy. There is no fair when it comes to injury settlements, it's all a matter of negotiation and which side negotiates from strength and which side negotiates from weakness.

What is it about your claim that you think justifies $9500? Justify it to me (a retired claim rep) and I'll comment on it.

 

[HenryLacroix]

Of course there is a risk.

There is a risk that the claim rep will just rescind the offer (or just stick with the $5000 offer) and close the file and wait for you to make the next move.

Fair is where you go on rides and eat cotton candy. There is no fair when it comes to injury settlements, it's all a matter of negotiation and which side negotiates from strength and which side negotiates from weakness.

What is it about your claim that you think justifies $9500? Justify it to me (a retired claim rep) and I'll comment on it.

Thank you for your response.

Medical expenses + lost wages were about $3,200.

1 trip to urgent care
2 follow up trips to primary care
Inhaler for about a month
Anti-anxiety medication

I worked in sales over the telephone and was unable to do my job without coughing (and a few times vomiting) every few minutes. This lasted a few weeks.

My sleep was disrupted greatly - every time I'd lay down, the cough would get worse. I woke up a lot coughing.

Working an already extremely stressful job with this cough caused quite a bit of frustration and emotional harm.

I wrote the adjuster a much more eloquent description a few pages long but those were basically the core issues I included.

Thank you for the direct answer to my question. I have had a hard time getting an answer for some reason. Because this was in the past and my medical bills have been paid, I would be *satisfied* with the $5,000. But it's my understanding that he would not just offer the maximum right away. If there really is a notable risk that he'll rescind the offer and I'll end up fighting for less than the $5,000, I'm leaning toward just accepting it. But I'm very interested in what else you have to say about it.

Thanks again!

 

[HenryLacroix]

You can usually make a counter-offer.

If you had retained a lawyer, the first offer would have been around $15,000, or more.

Maybe you should discuss your situation with a couple lawyers in your county and discover if your position could improve with legal representation?

I will look into that. Thank you for the response.

 

[adjusterjack]

Thank you for the direct answer to my question. I have had a hard time getting an answer for some reason. Because this was in the past and my medical bills have been paid, I would be *satisfied* with the $5,000. But it's my understanding that he would not just offer the maximum right away. If there really is a notable risk that he'll rescind the offer and I'll end up fighting for less than the $5,000, I'm leaning toward just accepting it. But I'm very interested in what else you have to say about it.

Given your medical cost and lost earnings a couple of months of "pain and suffering" without anything life threatening going on, that part of the claim is probably worth about $1000 per month. That brings you to about $5200.

You asked for $9500 and the claim rep offered $5000. You're right, there's always some room above the first offer.

I suggest countering with $8000 and emphasize to the claim rep that he gets to close the file quickly and get it off his desk. A claim rep's bane is a claim file that stays open for a long time.

If he comes back with another $1000 or so, take it.

One of your weaknesses is that the WA small claims limit is only $5000 so you would need a lawyer for regular civil court.

But a lawyer won't get you any more money than you'll be able to get by yourself. Lawyers don't want to sue for small claims, they want a quick payday and they'll take a third of the settlement for doing nothing.

If you are going to talk to a personal injury lawyer see if he'll agree to take a third of the difference between the $5000 you've already been offered and the amount he actually gets. I doubt if you'll get anybody to agree to that. But if anybody does, make sure you get the agreement in writing and understand what you are getting into.

 

[HenryLacroix]

Given your medical cost and lost earnings a couple of months of "pain and suffering" without anything life threatening going on, that part of the claim is probably worth about $1000 per month. That brings you to about $5200.

You asked for $9500 and the claim rep offered $5000. You're right, there's always some room above the first offer.

I suggest countering with $8000 and emphasize to the claim rep that he gets to close the file quickly and get it off his desk. A claim rep's bane is a claim file that stays open for a long time.

If he comes back with another $1000 or so, take it.

One of your weaknesses is that the WA small claims limit is only $5000 so you would need a lawyer for regular civil court.

But a lawyer won't get you any more money than you'll be able to get by yourself. Lawyers don't want to sue for small claims, they want a quick payday and they'll take a third of the settlement for doing nothing.

If you are going to talk to a personal injury lawyer see if he'll agree to take a third of the difference between the $5000 you've already been offered and the amount he actually gets. I doubt if you'll get anybody to agree to that. But if anybody does, make sure you get the agreement in writing and understand what you are getting into.

Thank you for the response. I actually just spoke to him on the phone. I ended up countering with $9,000, he said $5,500, I said no, and he "met me in the middle" at $7,250. I am calling him back today and will probably just take it.

But, I was curious about one thing he said. I had mentioned something about possibly hiring a lawyer, just to see what he'd say, and he said something like "Hire one if you want, that's fine with me. If you decide to go to court I'll probably end up doing ________ which will mean you can't collect any more than the amount we talked about." That is *roughly* what he said but I don't remember what "______" was. It was some process, and there was a name for it. Do you know what he could have been referring to? It didn't sound like he was talking about the policy limit but I'm not positive. Sorry that's not much to go off.

Thank you again for your detailed responses so far, much appreciated.

 

[adjusterjack]

I ended up countering with $9,000, he said $5,500, I said no, and he "met me in the middle" at $7,250. I am calling him back today and will probably just take it.

Yes, do. $7250 is more than I would have come back with.

I had mentioned something about possibly hiring a lawyer, just to see what he'd say, and he said something like "Hire one if you want, that's fine with me. If you decide to go to court I'll probably end up doing ________ which will mean you can't collect any more than the amount we talked about." That is *roughly* what he said but I don't remember what "______" was. It was some process, and there was a name for it. Do you know what he could have been referring to?

Hard to tell. Did it sound something like "offer of judgment"?

 

[HenryLacroix]

Yes, do. $7250 is more than I would have come back with.



Hard to tell. Did it sound something like "offer of judgment"?

Yes! I'm almost positive that's what it was. I just skimmed the wiki but does this mean if the offer of judgment is the $7,250 he offered me, and the court decides on a smaller amount, I possibly pay penalties? I'm not sure if I read it right.

 

[adjusterjack]

Yes! I'm almost positive that's what it was. I just skimmed the wiki but does this mean if the offer of judgment is the $7,250 he offered me, and the court decides on a smaller amount, I possibly pay penalties? I'm not sure if I read it right.

You read it right. I could point you to the actual statute and court rule if you like, but I don't think you need to spend time trying to decipher them if you are going to accept the $7,250.

 

[HenryLacroix]

You read it right. I could point you to the actual statute and court rule if you like, but I don't think you need to spend time trying to decipher them if you are going to accept the $7,250.

You're right, it's not relevant. I just got off the phone and he's emailing the paperwork for $7,500. Thank you so much for the advice! You have been most helpful.