How Are TBI Settlements Calculated?

How Are TBI Settlements Calculated?

When you suffer a traumatic brain injury (TBI), the effects can reach far beyond the initial accident. You might struggle with daily activities you once did without thinking, experience mood or memory changes, or face medical bills that pile up faster than you can pay them. A well-prepared TBI settlement calculation is the foundation for making sure you have the resources to manage these changes now and in the future.

In Texas and across the United States, there’s no single formula that applies to every TBI case. The value of your claim depends on your specific circumstances, the available evidence, and the strength of the case your legal team builds for you. With the help of an experienced Austin brain injury lawyer, every relevant factor is reviewed and documented so you can focus on your health while your lawyer handles the rest.

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The Reality of TBI Diagnosis

A TBI is an injury that disrupts how your brain works. According to the U.S. Centers for Disease Control and Prevention (CDC), TBIs can be caused by a bump, blow, jolt to the head, or a penetrating injury. 

Doctors sometimes use terms like “mild,” “moderate,” or “severe” to describe TBIs, but these labels can be misleading. They refer only to the initial presentation of your symptoms, not to the long-term outcome.

Even so-called “mild” TBIs, such as concussions, can lead to symptoms that persist for months or years. In some cases, they may worsen over time. Conversely, someone diagnosed with a “severe” TBI could recover fully. That’s why settlement calculations focus on the impact of the injury on your life rather than the initial medical label.

TBIs are often invisible to imaging tests like MRIs or CT scans. Many diagnoses rely on observed symptoms, such as headaches, dizziness, memory lapses, and difficulty concentrating, rather than visible brain damage. This makes documenting the injury and its effects especially important when building your claim.

Key Factors That Influence TBI Settlement Value

No two TBI cases are alike. However, certain factors commonly influence how much compensation a person may recover in a settlement. The stronger the evidence in each of these areas, the higher the potential value of your claim.

Liability

Settlement calculations begin with determining who is legally responsible for your injury. In Texas, you must prove that another party’s negligence caused the accident. This often involves showing that:

• The other party owed you a duty of care
• They breached that duty through their actions or inaction
• Their conduct caused the accident
• You suffered damages as a result

For example, if you suffered a TBI in a crash caused by a driver running a red light, proving this breach of duty could establish liability.

Damages

Damages represent the losses you’ve experienced because of the injury. They are divided into two broad categories:

• Economic damages: These are tangible financial losses such as medical bills, lost income, rehabilitation costs, and future medical expenses.
• Non-economic damages: These address intangible losses, such as pain, emotional distress, reduced quality of life, and loss of companionship.

Each category requires detailed documentation and, in many cases, professional input from medical providers, vocational experts, and financial planners. We’ll take a look at these damages in closer detail below.  

Impact on Daily Life

A TBI can alter your ability to work, maintain relationships, and enjoy activities you once loved. Settlement calculations take into account whether you can return to your previous occupation, whether you require assistance with daily activities, and how the injury has affected your independence.

Texas Comparative Fault Rules

Texas follows a modified comparative fault rule. If you are partly responsible for the accident, your compensation will be reduced by your percentage of fault. If you are 51% or more at fault, you cannot recover damages. Insurance companies often use this rule to try to minimize payouts, so having strong evidence to counter fault allegations is important.

Insurance Policy Limits

Even if your damages exceed the at-fault party’s insurance coverage, you generally cannot recover more than the policy limit—unless the at-fault party has significant personal assets or additional coverage. This is why serious injuries often involve exploring multiple sources of compensation, such as underinsured motorist coverage.

Economic Damages in a TBI Case

Economic damages are typically the easiest part of a TBI settlement to calculate because they involve clear dollar amounts supported by bills, receipts, and employment records. However, accurately projecting future costs is just as important as tallying what you’ve already spent.

Medical Expenses

Your medical bills will likely form the largest part of your economic damages. This includes:

• Emergency room visits and hospital stays
• Surgeries and follow-up care
• Rehabilitation and physical therapy
• Prescription medications
• Medical equipment or home modifications

Ongoing costs for TBIs can be substantial. Rehabilitation alone may last months or even years, and follow-up visits with neurologists, neuropsychologists, and therapists can continue indefinitely.

Lost Income and Earning Capacity

If your injury has kept you out of work, you can claim compensation for lost wages. For more severe TBIs that limit your ability to return to your previous job or to work at all, your claim can include loss of earning capacity. Vocational experts may be brought in to estimate your future income losses based on your profession, skill set, and job market conditions.

Out-of-Pocket Costs

These include any expenses directly related to the injury, such as transportation to medical appointments, home health aides, or temporary childcare. While they may seem minor compared to medical bills, they can add up over time and should be documented carefully.

How Lawyers Calculate Economic Damages

Attorneys often work with medical professionals, financial experts, and life care planners to develop a detailed picture of your current and future expenses. Two common methods are used for non-economic damages, but economic damages typically follow a straightforward addition of all verifiable costs.

For example, your lawyer will add past medical bills, lost wages, future lost income, and projected cost of future care, among other costs to arrive at your economic damages. This number would then be combined with non-economic damages to reach a full settlement figure.

Non-Economic Damages in a TBI Case

While economic damages cover financial losses, non-economic damages address the profound ways a TBI changes your life. These damages can be harder to measure because they have no fixed price tag, yet they often represent the most significant losses in a brain injury case.

Pain and Suffering

This category includes both the physical discomfort and the emotional toll caused by the injury. For TBI survivors, pain and suffering might involve chronic headaches, sensitivity to light and noise, anxiety, depression, or post-traumatic stress disorder (PTSD). These experiences can last for months, years, or even a lifetime.

Loss of Enjoyment of Life

A TBI may prevent you from engaging in hobbies, sports, or other activities that once brought joy. It can also affect relationships, social interactions, and your sense of independence. The law recognizes that losing these parts of your life has real value.

Loss of Consortium

If a brain injury impacts your relationship with your spouse or partner, emotionally, physically, or in terms of companionship, your partner may have a separate claim for loss of consortium.

How Non-Economic Damages Are Calculated

Because these damages are subjective, attorneys and insurers often use one of two methods:

• Multiplier Method: The total economic damages are multiplied by a number that reflects the severity and long-term impact of the injury. For example, a multiplier of 3 might be used for a life-altering TBI.
• Per Diem Method: A daily rate is assigned to your pain and suffering, multiplied by the number of days you are expected to experience the effects of the injury.

Neither method is perfect, and negotiations often center on what multiplier or daily rate is fair. Strong medical documentation, personal testimony, and statements from friends and family can make a significant difference.

Lifetime Costs of a TBI

One of the most challenging aspects of a TBI settlement is projecting the future costs of care. Some survivors require ongoing therapy, assistive devices, or home modifications for decades. Others may need long-term residential care if they cannot live independently.

Key long-term costs may include:

• Ongoing medical treatment and follow-up care
• In-home nursing or assisted living services
• Counseling or psychiatric care for emotional effects
• Vocational retraining or job placement assistance
• Transportation needs if driving is no longer possible

The goal in settlement negotiations is to ensure you have the resources to cover these costs without having to return to court years later.

Pediatric TBI Settlements and Compensation for Children

When a traumatic brain injury happens to a child, the effects can be even more far-reaching than in an adult. The CDC reports that an injury to a developing brain can disrupt learning, behavior, and emotional regulation for years to come. These changes may affect school performance, relationships, and eventually, the ability to earn a living.

TBIs Affect Children Differently

A child’s brain is still growing. Damage from a fall, sports injury, or vehicle crash can interfere with normal development. Symptoms might not be obvious right away, or they may change over time as the child reaches new developmental stages. That’s why settlements for pediatric TBIs must anticipate not only current challenges but also potential future needs.

Damages Unique to Pediatric TBI Cases

In addition to medical bills and therapy costs, damages in a child TBI claim may include:

• Educational support and accommodations such as tutoring, special education services, or assistive technology
• Developmental therapies including occupational, speech, and physical therapy
• Future earning capacity losses if the injury impacts the child’s ability to work as an adult
• Long-term care planning for children with permanent disabilities

These damages can span decades, making it critical to calculate them accurately with the help of medical and financial experts.

Legal Considerations for Minors in Texas

Texas law often pauses, or “tolls,” the statute of limitations for personal injury claims involving minors until they turn 18. However, certain claims that belong to a parent or guardian, such as those for medical expenses incurred before the child turns 18, may have earlier deadlines. 

Because of this, seek legal guidance promptly, even if your child’s claim is tolled. Waiting too long can also create challenges in proving the case and covering the cost of care in the meantime. Settlements for minors typically require court approval to ensure the funds are used in the child’s best interest, which can add extra steps to the process.

An attorney can manage these requirements, work with the court, and structure the settlement, for example, by using a trust or annuity so the child has resources available when they need them most.

Key Takeaways

• A TBI settlement calculation is based on liability, damages, the impact on your life, and the available insurance coverage.
• Medical documentation and professional evaluations are essential for proving both economic and non-economic damages.
• Methods like the multiplier or per diem approach are often used to determine non-economic damages.
• Future costs—such as long-term care or loss of earning capacity—must be factored into any settlement offer.
• Insurance companies may try to minimize payouts by disputing the severity of your injury or your need for future care.
• Waiting until your medical condition stabilizes before accepting a settlement can safeguard your financial future.

Get Help From Lorenz & Lorenz, PLLC

If you or a loved one has suffered a traumatic brain injury in Texas, you don’t have to deal with the legal process on your own. The brain injury lawyers at Lorenz & Lorenz, PLLC have been representing accident victims for more than two decades, focusing exclusively on personal injury cases.

We know the financial, emotional, and physical challenges that come with a TBI, and we work tirelessly to pursue maximum compensation for our clients. With an experienced Austin personal injury attorney on your side, you’ll have the guidance and advocacy needed to navigate the toughest parts of your case.

We offer free consultations, and if you cannot come to our office, we can meet you at your home, hospital, or another convenient location. There is no fee unless we recover compensation for you.

Call (512)477-7333 or contact us online today to schedule your consultation.

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