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Reference

Terms, defined

Plain English, no jargon. These are the words that come up most in a Texas injury claim.

Defined terms

51% bar

Under Texas proportionate responsibility, a claimant who is found more than 50 percent at fault recovers nothing. At 50 percent or less, recovery is reduced by the claimant’s own percentage of fault.

Contingency fee

A fee arrangement under which the attorney is paid a percentage of the recovery and collects nothing if the case does not recover. Cukjati Law Firm handles injury cases on contingency.

Demand letter

A written statement to the insurer setting out liability, damages, and the amount required to settle. Usually the first formal step toward resolution.

Deposition

Sworn, recorded testimony taken before trial, with attorneys for both sides present.

Discovery

The formal exchange of evidence between parties before trial: written questions, document requests, and depositions.

Economic damages

Losses with a calculable dollar figure: medical expenses, lost wages, lost earning capacity, property damage.

Exemplary damages

Damages awarded to punish conduct rather than to compensate loss. Available in Texas only on clear and convincing evidence of fraud, malice, or gross negligence, and subject to statutory caps.

Letter of protection

An agreement under which a medical provider treats an injured person now and is paid from the eventual settlement or judgment, rather than at the time of treatment.

Lien

A legal claim against your settlement — commonly by a hospital, health insurer, or government payer — that must be resolved before funds are disbursed.

Loss of consortium

A claim for the loss of companionship, affection, and household contribution of an injured or deceased family member.

Maximum medical improvement

The point at which a treating physician concludes a patient’s condition has stabilized and further recovery is not expected. Often abbreviated MMI. Case value is difficult to assess before it is reached.

Mediation

A settlement conference led by a neutral third party who has no power to impose an outcome. Most Texas injury cases resolve at or after mediation.

Negligence

Failing to use the care a reasonably careful person would use in the same situation. Most Texas injury claims are built on proving someone was negligent and that the negligence caused the harm.

Non-economic damages

Losses without a receipt: physical pain, mental anguish, physical impairment, disfigurement, loss of enjoyment of life.

Policy limits

The maximum an insurance policy will pay for a claim. When damages exceed the at-fault party’s limits, recovery may depend on additional policies, underinsured motorist coverage, or other responsible parties.

Proportionate responsibility

The Texas rule for dividing fault among everyone involved in an incident. Codified in Chapter 33 of the Civil Practice and Remedies Code. Each party is assigned a percentage of responsibility.

Statute of limitations

The deadline for filing suit. In Texas, most personal injury claims must be filed within two years of the date of injury. Miss it and the claim is generally barred regardless of merit.

Subrogation

The right of a health insurer or other payer to be reimbursed out of your settlement for medical costs it covered. Resolving subrogation claims is part of closing a case.

Survival action

A claim brought by the decedent’s estate for the losses the decedent suffered before dying. Distinct from, and often filed alongside, a wrongful death claim.

Underinsured motorist coverage

Coverage on your own auto policy that applies when the at-fault driver’s insurance is insufficient to cover your losses. Often abbreviated UIM.

Uninsured motorist coverage

Coverage on your own auto policy that applies when the at-fault driver has no insurance, or in a hit-and-run where the driver is never identified. Often abbreviated UM.

Venue

The county where a case may properly be filed. Governed in Texas by Chapter 15 of the Civil Practice and Remedies Code.

Wrongful death claim

A claim brought by a surviving spouse, child, or parent for their own losses following a death caused by another’s wrongful act.