The loss of a loved one due to someone else’s negligence is one of life’s most painful experiences. Beyond the emotional devastation, families are often left facing financial burdens such as medical bills, funeral expenses, and the loss of household income. In New Jersey, a wrongful death claim allows surviving family members to seek compensation for these losses. While some cases go to trial, most wrongful death claims are resolved through settlements. Understanding how settlements work in wrongful death cases can help families navigate this difficult process with clarity and confidence.
What Is a Wrongful Death Settlement?
A wrongful death settlement is a financial agreement between the deceased person’s estate (through its representative) and the party or parties responsible for the death. Instead of going through a lengthy and unpredictable trial, both sides agree on a compensation amount to resolve the claim. The settlement typically covers financial losses and other damages permitted under New Jersey law, providing families with closure and financial stability.
In New Jersey, wrongful death settlements are governed by N.J.S.A. 2A:31-1 et seq., which defines how damages are calculated and distributed among the beneficiaries. The settlement is reached either during pre-litigation negotiations or after a lawsuit has been filed but before a verdict is rendered.
How the Settlement Process Works
1. Investigation and Case Evaluation
The process begins with a thorough investigation of the incident. The attorney representing the estate collects evidence such as police reports, medical records, witness statements, and expert opinions. This helps determine who is liable and what damages can be claimed.
2. Calculating Damages
In a wrongful death case, the damages primarily focus on economic losses — that is, the financial support, services, and benefits that the deceased would have provided if they had lived. These may include:
- Lost income and future earning potential
- Loss of household services (childcare, maintenance, etc.)
- Medical expenses incurred before death
- Funeral and burial costs
- Loss of companionship, care, and guidance
Unlike some other states, New Jersey does not allow recovery for emotional grief or pain and suffering of the survivors in wrongful death claims.
3. Negotiation with the Insurance Company
Most wrongful death settlements are reached through negotiations with insurance companies representing the at-fault party. Insurance adjusters will evaluate the claim and may offer a settlement amount. An experienced attorney will negotiate to ensure that the offer reflects the true value of the family’s losses, often using expert testimony to support the damages calculation.
4. Approval by the Court
In New Jersey, all wrongful death settlements must be approved by the Superior Court. This step ensures the settlement is fair and that the funds are distributed properly among the beneficiaries. The court will review the proposed allocation, attorney’s fees, and any outstanding medical liens before granting approval.
5. Distribution of Settlement Funds
Once approved, the settlement funds are distributed to eligible beneficiaries in accordance with New Jersey’s intestacy laws, which determine who inherits in the absence of a will. Typically, the surviving spouse and children are the primary recipients, though parents or other dependents may also be included.
Factors That Influence Settlement Amounts
Every wrongful death case is unique. The settlement amount depends on several factors, including:
- The age, health, and earning potential of the deceased
- The degree of financial dependency of surviving family members
- The extent of the defendant’s negligence
- Available insurance coverage and assets
- Strength of evidence and likelihood of success at trial
Insurance companies often try to minimize payouts, so working with a knowledgeable attorney can make a significant difference in securing full and fair compensation.
Why Many Families Choose Settlement Over Trial
While going to trial may result in a higher award, settlements offer several advantages:
- Certainty: The outcome is known and not left to a jury’s discretion.
- Speed: Settlements resolve cases faster than drawn-out court proceedings.
- Privacy: Settlements are typically confidential, protecting family privacy.
- Reduced Stress: Avoiding trial spares the family from reliving traumatic events in a public courtroom.
Conclusion
Settling a wrongful death case in New Jersey can bring both financial relief and emotional closure to grieving families. By understanding how the process works— from investigation to court approval— families can make informed decisions during an incredibly difficult time. Working with an experienced wrongful death attorney ensures that the settlement reflects the full value of the loss and that every legal step is handled with care, compassion, and professionalism.