By Michael Shemtoub, trial attorney, Beverly Law. Updated November 2026.
Questions about your settlement?
Leave your name and phone. We call back today, in English or Spanish. The consultation is free and confidential.
Free consultation · English y Español · No fees or costs unless we win
Step 1: economic damages from the records
Economic damages are the losses with a price tag. California defines them as “objectively verifiable monetary losses,” including medical expenses and lost earnings (Civ. Code 1431.2(b)(1)). Texas calls them compensation for “actual economic or pecuniary loss” (CPRC 41.001(4)).
A lawyer builds this part line by line, using what California juries are told to look for in the CACI 3903 series (CACI 2025 edition):
| Item | What the lawyer gathers | What must be proven |
|---|---|---|
| Past medical care | Itemized bills and payment records | The reasonable cost of reasonably necessary care received (CACI 3903A) |
| Future medical care | A treating doctor’s opinion or a care plan | Care you are reasonably certain to need (CACI 3903A) |
| Lost earnings | Pay stubs, tax returns, an employer letter | Income lost to date and income reasonably certain to be lost (CACI 3903C) |
| Lost earning capacity | Work history, training, sometimes an economist | What you probably could have earned without the injury compared with what you can earn now; a work history is not required (CACI 3903D) |
The medical number is not always the billed total. In California, a plaintiff whose care was paid by private insurance recovers no more than what was paid or is still owed (Howell), and Texas limits medical recovery to amounts actually paid or incurred (CPRC 41.0105). Our $100,000 settlement page shows how that changes the gross figure. For wage proof, see lost wages after a car accident.
Step 2: pain, suffering and other noneconomic harm
This part has no receipts. California’s instruction tells jurors that “no fixed standard exists” for these damages and that they must use judgment based on the evidence and common sense (CACI 3905A). Texas lists what counts, including physical pain, mental anguish, disfigurement, physical impairment and loss of enjoyment of life (CPRC 41.001(12)). Washington’s Supreme Court held the state’s statutory limit on noneconomic damages, RCW 4.56.250(2), unconstitutional in Sofie v. Fibreboard (as applied in Moody v. United States).
You may hear about multiplying the medical bills by some number. No statute or court in these three states sets a formula. A lawyer estimates this part from the injury, how long it lasts, what it stops you from doing, and how believable the proof will look to a jury. Our page on how pain and suffering is calculated goes deeper.
Step 3: liability and shared fault
Next the lawyer asks how likely a jury is to blame the other side, and by how much. A clear rear-end crash and a disputed intersection collision with the same injuries can carry very different values.
California uses pure comparative fault, so your damages drop by your share of blame with no cutoff (Li v. Yellow Cab). Washington also reduces the award in proportion without barring it (RCW 4.22.005). Texas reduces damages by your percentage, but bars recovery entirely above 50 percent (CPRC 33.001, 33.012). That cliff makes a fault argument near 50 percent far more dangerous in Texas than in California.
When there is more than one defendant, collection rules matter too. In California, each defendant’s share of noneconomic damages is several only, tied to its own percentage of fault (Civ. Code 1431.2(a)). In Texas, a defendant is generally jointly and severally liable only if its responsibility is greater than 50 percent (CPRC 33.013). A lawyer checks whether the defendant with the larger share actually has insurance.
Free case review
Tell us what happened. We will tell you plainly whether there is a case and what to do next. You owe no fees or costs unless we win.
Step 4: insurance and who can pay
A full value means little if nobody can pay it. Minimum liability limits for one injured person are $30,000 in California (Department of Insurance) and Texas (Transp. Code 601.072), and $25,000 in Washington (RCW 46.29.090). So lawyers look for every policy that might apply, including your own underinsured coverage, as our $25,000 settlement page explains.
Punitive damages are allowed only in limited situations, and the rules differ sharply:
| State | Punitive damages rule | Law |
|---|---|---|
| California | Allowed on clear and convincing proof of oppression, fraud or malice | Civ. Code 3294 |
| Texas | Clear and convincing proof required; capped at the greater of $200,000 or twice economic damages plus noneconomic damages up to $750,000 | CPRC 41.003, 41.008 |
| Washington | Not allowed without express authorization in a statute | Dailey v. North Coast Life |
Punitive damages are also taxable, unlike damages for physical injuries (26 U.S.C. 104(a)(2)).
What this means for your case
The value of your claim rests on proof. Keep every bill and payment record, ask your doctor to write down future care in plain terms, and get a letter from your employer about missed work. Tell your lawyer about every insurance policy in your household. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou.
After the value is set, fees, costs and liens decide what reaches you. The amount pages linked above walk through that math with examples.
Common questions
Is there a settlement formula lawyers use?
No statute or court sets one. Lawyers total the provable economic losses, estimate noneconomic harm from the evidence, then adjust for fault risk and available insurance.
Do my medical bills decide the value?
They anchor the economic part, but the amount counted can depend on what was actually paid. Pain, lost earning capacity and fault can move the total far from the bills.
Can future surgery be counted?
Yes, if the evidence shows you are reasonably certain to need it. A treating doctor’s opinion usually carries that proof. See surgery after a car accident.
Why is the insurer's number lower than my lawyer's?
The insurer may argue the treatment was unnecessary, the fault was shared, or the injury came from something else, often relying on its own defense medical exam. Each argument is a risk your lawyer weighs.
Does it matter which state the crash happened in?
Yes. The fault rules, punitive damages limits and medical bill rules above all change from state to state. Beverly Law offers a free case review in English or Spanish at (310) 552-6959. You owe no fees or costs unless we win. More answers about settlements are in our injury law FAQs.
Ask a question
Not ready to call? Write your question and someone on our team will answer. No cost, no commitment.
Injury lawyer — Beverly Law
Hurt because of someone else in California, Texas and Washington? Talk to an injury attorney. Free, confidential, English or Spanish. You owe no fees or costs unless we win.
Related pages
Sources
- Judicial Council of California Civil Jury Instructions (CACI), 2025 edition (courts.ca.gov)
- CACI No. 3903A (Justia copy) (justia.com)
- CACI No. 3903C (Justia copy) (justia.com)
- CACI No. 3903D (Justia copy) (justia.com)
- CACI No. 3905A (Justia copy) (justia.com)
- Cal. Civil Code 1431.2 (leginfo.legislature.ca.gov)
- Tex. Civ. Prac. & Rem. Code ch. 41 (41.001, 41.003, 41.008, 41.0105) (statutes.capitol.texas.gov)
- Howell v. Hamilton Meats & Provisions, Inc. (2011) 52 Cal.4th 541 (scocal.stanford.edu)
- Moody v. United States (Wash. 1989), applying Sofie v. Fibreboard Corp., 112 Wn.2d 636 (law.justia.com)
- Li v. Yellow Cab Co. (1975) 13 Cal.3d 804 (scocal.stanford.edu)
- Tex. Civ. Prac. & Rem. Code ch. 33 (33.001, 33.012, 33.013) (statutes.capitol.texas.gov)
- RCW 4.22.005 (app.leg.wa.gov)
- California Department of Insurance, New Year Means New Changes for Insurance (2025) (insurance.ca.gov)
- Tex. Transportation Code 601.072 (statutes.capitol.texas.gov)
- RCW 46.29.090 (app.leg.wa.gov)
- Cal. Civil Code 3294 (leginfo.legislature.ca.gov)
- Dailey v. North Coast Life Ins. Co., 129 Wn.2d 572 (1996) (law.justia.com)
- 26 U.S.C. 104 (law.cornell.edu)
Important: This page is general information, not legal or medical advice, and reading it does not create an attorney-client relationship. Every case is different; talk to a lawyer about yours. Texas cases are handled by the firm’s Texas-licensed attorneys, Joyce Ondich and John Efstathiou. Last reviewed: November 7, 2026.