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Some parts are taxable and some are not. A settlement for personal injury may include the following elements (a) pain and suffering, (b) medical expenses, (c) lost wages, (d) emotional distress, and (e) punitive damages. Each of these are treated differently for tax purposes.

Generally speaking payments for pain and suffering are not taxable. IRC §104(a)(2) excludes from taxation settlements “on account of personal physical injuries or sickness.” Accordingly, payments for pain and suffering related to personal injury are not taxable.  Likewise, payments for medical expenses are not taxable “if the taxpayer has not previously deducted her medical expenses.” See prior cite.  Thus, if you have deducted your medical expenses from treatment, this portion may be taxable.

Somewhat surprisingly, lost wages are also considered to be payments “on account of personal physical injuries” and are not generally taxable. This is limited to payments of lost wages for time in which the plaintiff was actually out of work due to their injury. If the plaintiff was out of work for another reason unrelated to the injury, this would be taxable.

There are unique rules for emotional distress claims. The IRS states that these are excludable from income only to the extent the payments exceed the out of pocket medical costs. IRC §104(b)(6). This means that payments above and beyond the amount that the plaintiff actually incurred for treating the emotional distress would be taxable.

Punitive damages are also exempted from the definition of excludable income in personal injury settlements. Punitive damages are not awarded to compensate the plaintiff for an injury. They are awarded to punish the defendant for egregious conduct (defined often in the law as intentional, wanton, or reckless indifference to the consequences).  Because of this, the IRS does not treat these payments as stemming from the personal injury.

An example may assist in understanding. Let’s assume that Plaintiff A is injured in a car accident with Defendant B. Plaintiff A sues Defendant B for personal injuries, pain and suffering, medical expenses, lost wages, emotional distress, and punitive damages. After litigation, the case is settled in the following amounts:

• Pain and Suffering: $10,000
• Medical Expenses: $5,000
• Lost Wages: $2,500
• Emotional Distress: $2,500
• Punitive Damages: $5,000
• Total Settlement: $25,000

Applying the foregoing general principles, the $10,000 for pain and suffering and $2,500 for lost wages are not taxable (assuming the plaintiff actually missed work due to their injuries). The punitive damages are clearly taxable. The taxability of the medical expenses and emotional distress claims depends on more facts.  If Plaintiff A had previously deducted these medical expenses from their taxes, then the payment is taxable. If Plaintiff A had not deducted these medical expenses form their taxes, then the payment is not taxable. The Emotional Distress payment is only excluded to the extent Plaintiff A incurred medical expenses for the emotional distress claim.

As you can see, it gets kind of tricky. Although we have handled hundreds of Atlanta truck accident, Atlanta brain injury, Atlanta spinal injury, Atlanta pedestrian accident, Atlanta wrongful death, Atlanta bike accident, and other cases, we are not tax professionals. Before filing your taxes, you need to seek the advice of a competent accountant to assist you with managing the settlement of a personal injury claim. Contact us today for a free consultation.

One of our areas of focus is helping families recover for the death of a loved one. We have handled numerous wrongful death claims, received one of the largest wrongful death verdicts in the history of the state, and recovered millions more for fatal accidents in Atlanta. As a Georgia fatal accident attorney, we are very familiar with the statutes that govern wrongful death claims in Georgia.

One of the most fundamental (and confusing) rules govern: who can file suit for wrongful death? It is easy to see how this could cause hardship. For example, if a father does not want to pursue a fatal accident claim, but a child does. Another example, if two children disagree on how to proceed with a wrongful death claim.  There are three statutes that governs, generally, who has the power to bring a wrongful death claim.

The right to bring a wrongful death claim is governed by three statutes, O.C.G.A. § 51-4-2; O.C.G.A. § 51-4-4; and O.C.G.A. § 51-4-5. These statutes establish an order of priority for who can assert a wrongful death claim, absent some unusual circumstances. The order is as follows:

• A spouse has the first right to bring a wrongful death claim.
• If there is no surviving spouse, the children of the decedent may bring a wrongful death claim.
• If the decedent has no surviving spouse or children, then the decedent’s surviving parents have the right to bring the wrongful death claim.
• If no one else is entitled to bring the claim, the administrator or executor of the decedent may bring an action for and may recover and hold the amount recovered for the benefit of the next of kin.

There are some important exceptions to this rule. For example, a parent that totally abandoned their child may not bring a wrongful death claim. Also, if a person who is in the line of priority refuses to assert a claim, there may be a path for folks later down the line of priority to assert the claim.

This is only one of the many somewhat different and tricky rules that apply to wrongful death accidents in Georgia. That is why it is important to hire an experienced fatal accident lawyer in Georgia. Contact us today for a free consultation.

When you are in a tractor trailer accident, finding the best Georgia tractor trailer accident attorney is important. But, what is the “best”? The truth is: there is no “best” attorney. There are, however, attorneys who know the ins and outs of Georgia tractor trailer accidents and those who do not. It can be difficult for a potential client to know the difference.

Here are a few tips when hiring a tractor trailer accident attorney:

1. Experience: Because truck accidents are different, an attorney needs to have experience as truck accident lawyers. In our firm, for example, we have handled many truck accident cases. We have defended large trucking companies. We have prosecuted cases against trucking companies. As a result, we know how to handle your truck accident case and put you in the best possible position. Any attorney you hire should have extensive real life experience in truck accident cases.

2. Knowledge: There are unique standards that apply to truck accidents. Because of that, a dedicated Atlanta truck accident attorney will often publish material to educate the public on truck accidents. For example, we have multiple blog posts dedicated to helping the public understand Atlanta truck accidents. Information like this shows that the attorney knows the unique standards that apply.

3. Initial Consultation: Many truck accident lawyers offer free consultations. During this consultation, you should evaluate the lawyer too! Ask your lawyer specific questions about their experience in truck accidents. Discuss with the lawyer how many truck accident cases they have handled? The results in those cases?

4. Reviews: Good attorneys generally receive good reviews. That is why we pride ourselves on the reviews we have obtained from other attorneys and former clients. Checking Google reviews can be a great source of information for how quickly your attorney will handle your truck accident case.

Truck accident cases are often serious. That is why it is important to hire an experienced Georgia truck accident attorney. Contact us today for a free consultation.

If you or a loved one has been involved in an accident resulting in a serious (what we in the law label “catastrophic”) injury, one of the most challenging conversations to have with an attorney is the potential for recovery in your case. The most important thing is for you to get better, and, at the same time, there is a need to honestly assess your ability to recover money for your injuries. How do you do that?

We often use the analogy of a three-legged stool. In order for a stool to stand, it needs at least three legs. Similarly, a personal injury case (regardless of it is a brain injury, trailer wreck, bike accident, spine injury, or fatal accident case) requires three things.

• Liability: The accident must be due to someone else’s fault. For most catastrophic injury cases, the other party is required to have done something wrong in order for you to recover. This is not true for certain products liability cases, where there is “strict liability” or liability just because the accident happened. But, in a typical Atlanta tractor-trailer accident, for example, the truck wreck must be caused by the truck driver for there to be a recovery.
• Damages as a Result of the Accident: The accident must have resulted in some injury to you. Having an accident, by itself, is not enough to recover financially from another party. There must be damages. In a personal injury case, this means there must be something physically that happens to you, as a result of the accident. For example, in an Atlanta brain injury case, the damage will be the diminished mental function, lost wages, medical expenses, and quality of life, of the plaintiff as a result of the accident.
• Solvency: The Defendant must have a resource that the plaintiff can recover. There is nothing sadder in our practice than when a person who is really hurt or a family of a wrongful death accident comes to us, and the Defendant has no source of recovery. Unfortunately, the Defendant has to have some funds (like insurance or property) for the plaintiff to a recovery.

If any of these three “legs” are not present, the personal injury case (like a stool) cannot stand. If you think you have a truck wreck, fatal accident, pedestrian accident, bike accident, or catastrophic injury case, a knowledgeable Georgia attorney needs to review it to tell you for certain what you can and cannot likely recover.

A Georgia truck accident attorney is different than a Georgia car accident attorney. The differences present themselves in a number of ways.

1. Experience: A good Atlanta truck accident lawyer has experience in lawsuits with trucking companies. For example, our firm has been involved in hundreds of tractor-trailer crash cases. We have handled cases from pre-suit, through trial, and appeal. This experience is key because the rules governing truck accidents are different.

2. Rules: A different set of rules applies to a Georgia truck accident. The Federal Government heavily regulates the commercial vehicles, including bus, dump truck, garbage truck, deliver trucks. The Federal Motor Carrier Safety Administration (“FMCSA”) is a federal organization that sets the standards for big trucks. The regulations are huge and take a lot of time to understand. That’s one reason having an experienced Georgia truck accident attorney is important.

3. Evidence: Because the regulations are different, the evidence that is potentially important is different. For example, a truck driver has driver logs that he is generally required to fill out each day. These logs may tell you how long the driver has been working to be sure that he is complying with the rules. The truck itself also has a lot requirements, like how many millimeters, the brakes are allowed to move when applied.

4. Claims: The potential claims that a person injured in a tractor-trailer wreck in Atlanta has is different. For example, while in most cases the injured party cannot sue the defendant’s insurance company directly, the injured party can in a truck accident. Knowing this and other potential claims can significantly affect the value of the case.

5. Defenses: There are also unique defenses in a truck wreck case. For instance, the truck driver may use expert testimony from an engineer or a former police officer. These experts can review the evidence at a scene and determine which party was at fault. These experts can also look at the truck and trailer to determine if it complied with the regulations.

The attorneys in our firm specialize in tractor trailer accidents, and routinely represent tractor trailer companies and injured parties. We have the experience. We know the rules. We have the experts. We provide free consultations.

Our firm, along with several others, secured a $700,000 settlement in a high speed police chase for our clients. This is the maximum allowed by law. We are not revealing the names of our clients for their privacy.

Although we secured the maximum recovery possible, this was a tragic case involving seriously injured children. High speed police chases should be avoided at all costs. On average, one person per day dies from a high speed chase, many of them innocent bystanders and some children.

With today’s technology, there is minimal justification for such a chase, particularly when the offense is a mere traffic violation, like speeding, as it was in our case. Police officers generally have the tag information and can quickly track down an offender after backing off the chase. By engaging in a high speed pursuit, the police officer and the criminal’s cars become missiles on the roadway. A wreck at these high speeds often leads to serious injury or death.

Under Georgia law, an innocent person injured from a high speed chase may have a claim against the police department. Even when engaged in a high speed chase, “the driver of an authorized emergency vehicle” is “not relieve[d]” “from the duty to drive with due regard for the safety of all persons.” O.C.G.A. § 40-6-6(d)(1). An innocent third party may bring a claim when “the law enforcement officer acted with reckless disregard for proper law enforcement procedures in the officer’s decision to initiate or continue the pursuit.” Id. at (d)(2).

We obtained a verdict in excess of $27,000,000 in Fulton County in a wrongful death case. This is one of the largest verdicts in Fulton County history for wrongful death, and will likely be a top-10 verdict in Georgia for 2018.

The verdict concluded over 20 months of litigation between the Parties. The Complaint

alleged that the Defendant bar served alcohol to a minor who was noticeably intoxicated, knowing she would soon be driving a vehicle. The Complaint alleged that this was a violation of the Dram Shop Act.

Georgia’s Dram Shop Act states that a business that “willfully, knowingly, and unlawfully sells, furnishes, or serves alcoholic beverages to a person who is not of lawful drinking age, knowing that such person will soon be driving a motor vehicle” may be held liable for an auto accident “caused by or resulting from the intoxication of such minor or person when the sale, furnishing, or serving is the proximate cause of such injury or damage” Further,  a business that “knowingly sells, furnishes, or serves alcohol.

Alcoholic beverages to a person who is in a state of noticeable intoxication, knowing that such person will soon be driving a motor vehicle,” may be held liable for an auto accident “caused by or resulting from the intoxication of such minor or person when the sale, furnishing, or serving is the proximate cause of such injury or damage.” O.C.G.A. § 51-1-40.

Alex Weatherby and Pitts Carr have developed a strong wrongful death practice. This year, alone, they have secured nearly $30,000,000.00 for wrongful death victims in Georgia. The cause of action for wrongful death in Georgia is somewhat unique.

The type of claims asserted in such a case are (1) a wrongful death claim and (2) a pain and suffering claim by the Estate. A pain and suffering claim brought on behalf of a deceased person is for the pain endured after the shooting but before the death. A claim for wrongful death is brought by the heirs of the decedent. Under Georgia law, this includes damages for the full value of the loss of the life of the deceased, without deduction for damages for the pain and suffering of the deceased after the injury and prior to death. O.C.G.A. § 51-4-1

Although the verdict is a matter of public record, we have redacted our clients’ names for their privacy.