How Catastrophic Injury Claims Get Resolved

Catastrophic injuries, which are severe, life-changing harms such as spinal cord injuries, traumatic brain injuries (TBI), amputations, and severe burns, present some of the most complex personal-injury matters a law firm handles. Because catastrophic injuries carry very large present and future medical costs, long-term care needs, and vocational losses, resolving these claims requires careful investigation, expert proof of damages and causation, and skillful negotiation or litigation. In this blog, we walk you through how catastrophic injury claims are investigated, valuated, and resolved; explain the common resolution paths (settlement, structured award, verdict, or alternative dispute resolution); outline the role of experts; and offer practical guidance for injured people and their families.

“Catastrophic injuries change lives overnight. At John J. Malm & Associates, we assemble the evidence, engage the right experts, and pursue the financial foundation the injured person needs for the rest of their life.” — John J. Malm, Naperville personal injury lawyer

What Makes a Claim “Catastrophic”?

A catastrophic injury is not defined by a single injury label, rather it is defined by the injury’s effect on function and life. Typical catastrophic injury examples are:

• Severe traumatic brain injuries (moderate to severe TBI) that cause persistent cognitive, behavioral, or functional impairment.
• Spinal cord injuries that produce partial or complete paralysis (paraplegia, tetraplegia/quadriplegia).
• Amputations of limbs or digits requiring prosthetic care and rehabilitation.
• Severe burns requiring long-term wound care, reconstructive surgery, and durable medical equipment.
• Multiple severe orthopedic fractures and soft-tissue injuries that permanently reduce capacity to work.

Labeling an injury “catastrophic” matters because it increases the stakes for both sides: the plaintiff must prove long-term needs and future costs; the defendant (or insurer) must evaluate long-term liability and may face pressure to resolve to avoid uncertain jury verdicts that could reach seven figures or more.

The Roles of Early Investigation and Evidence Preservation

Catastrophic cases are evidence-heavy. The early investigative phase is critical and typically includes:

• Obtaining and preserving medical records, imaging studies, operative reports, and rehabilitation notes. Medical records not only document diagnosis and treatment but also support future-care cost projections.
• Securing scene evidence: photographs, surveillance video, vehicle data (EDRs/“black boxes”), maintenance logs, product samples, and accident reports. Physical and documentary evidence inform both liability and causation.
• Identifying and preserving witness statements and any official reports (police, OSHA, NTSB, or inspection agencies).
• Placing hold notices on providers and insurers so records and relevant data are not destroyed.

Because catastrophic claims often depend on future-care modeling, preserving complete and contemporaneous records early is essential to proving both causation and the scope of future damages.

Valuing Catastrophic Claims: How Damages are Calculated

Valuation is a multi-part process. A catastrophic injury claim will usually include the following categories of damages:

• Past medical expenses: hospital bills, surgeries, emergency care, imaging, and rehabilitation already incurred.
• Future medical and long-term care costs: ongoing therapy, attendant care, durable medical equipment, home modification, and nursing-home or assisted-living costs when required. Lifetime-cost projections often rely on published cost studies and individualized actuarial modeling. For example, lifetime costs for spinal cord injury vary by age and injury level and can range from about $1.2 million to more than $5 million depending on the patient’s age and injury severity.
• Lost earnings and loss of earning capacity: current lost wages and the present value of future income loss, which is calculated using vocational experts and economic modeling.
• Non-economic damages: pain and suffering, loss of enjoyment of life, loss of consortium, and other intangible harms. These are more subjective but often represent a significant portion of a catastrophic award.
• Punitive damages: in rare cases where the defendant’s conduct is especially reckless or intentional, punitive damages may be sought to punish and deter. Statutory caps may apply depending on jurisdiction.

Experts, such as life-care planners, vocational economists, rehabilitation specialists, and medical specialists, produce reports and cost projections. These expert inputs are often the single most important factor in settlement negotiations and jury persuasion.

Common Catastrophic Injury Resolution Paths

Catastrophic claims resolve in a few predictable ways, and the choice depends on liability clarity, the strength of expert proof, and the parties’ risk tolerance:

• Pre-suit settlement or demand negotiations: When liability is clear and the defendant’s carrier recognizes substantial future costs, cases may settle before filing suit after demand and exchange of key records. These settlements can still take many months to finalize because insurers evaluate lifetime-care models.
• Settlement during litigation (mediation/negotiated settlement): The majority of personal-injury claims, including catastrophic cases, resolve by settlement rather than trial. National data show that roughly 95% or more of personal injury matters are resolved without a jury trial. Catastrophic claims are no exception though they commonly require mediation and extensive expert exchanges before resolution.
• Structured settlements and annuities: Because plaintiffs with catastrophic injuries will often require long-term periodic care, structured settlements (annuities, periodic-payment judgments, or settlement portfolios) are common. These arrangements allow a portion of the recovery to be paid over time, sometimes with periodic cost-of-living adjustments, to match future care needs. Insurers often prefer structured payments to reduce large lump-sum outlays and to ensure long-term financial security for the claimant.
• Trial verdict: A small percentage of catastrophic claims proceed to trial. A trial may be necessary when parties cannot agree on liability, apportionment of fault, or the scope of future damages. Trials are risky for both sides: juries can award substantial verdicts but also may undercompensate compared to actuarial projections, and appeals may follow. National statistics indicate that only about 4–5% of personal injury cases reach trial, though catastrophic cases may be more likely to be litigated if substantial factual disputes exist.

Why Catastrophic Claims Take Longer

Because catastrophic claims require detailed expert opinions, thorough discovery, and careful valuation of lifetime needs, they typically take longer than average personal-injury matters. Typical timelines can range from several months to several years depending on factors such as medical stability, liability disputes, and the need for long-term prognostic data. Many plaintiff attorneys advise settling only after the injured person’s condition is sufficiently documented and a reliable life-care plan is in place, which is why many catastrophic claims resolve at 12–36 months or later.

Practical Issues: Insurance Limits, Multiple Defendants, and Solvency

Two complicating realities in catastrophic cases are insurance limits and multiple responsible parties. Insurers’ policy limits may be inadequate to cover lifetime needs, requiring plaintiffs to identify additional sources of recovery (umbrella coverage, other defendants, product-liability claims, government or municipal liability, or uninsured/underinsured motorist benefits). When available limits are insufficient, the plaintiff must prioritize claims, structure recoveries, or litigate to maximize recovery from all possible sources. Early identification of additional liable parties and coverage sources is essential.

Frequently Asked Questions about Catastrophic Injury Claims

Q: Will a catastrophic injury case always take years to resolve?
A: Not always. Some cases with clear liability and easily quantified damages settle faster, but many catastrophic cases require time to document medical stability and future care needs. Typical windows are 12–36 months, but complex or multi-defendant claims can take longer.

Q: How much is a catastrophic injury case worth?
A: Each case is unique. Valuations are based on past and future medical costs, lost earnings, non-economic damages, and available insurance. Lifetime medical costs for spinal cord injuries alone can range from over $1 million to several million depending on age and severity. Expert economic and medical projections are essential.

Q: What is a structured settlement and why use one?
A: A structured settlement converts a portion of a recovery into periodic payments (an annuity). It protects claimants from, among other risks, premature depletion of funds and helps ensure long-term care costs are met. Insurers and claimants often agree to structures that match projected care timelines.

Q: Do catastrophic injury plaintiffs usually hire experts?
A: Yes, life-care planners, vocational specialists, medical experts, rehabilitation specialists, and economists are virtually always used to quantify future needs and to present credible projections at settlement or trial. Expert reports drive the value of catastrophic claims.

Contact the Award-Winning Catastrophic Injury Attorneys at John J. Malm & Associates

Resolving a catastrophic injury claim is a process that demands early evidence preservation, rigorous medical and economic proof, and experienced negotiation or litigation. Because lifetime costs can be extraordinary and insurance coverage may be limited, early involvement of counsel who can identify all potential sources of recovery, coordinate specialists, and structure an appropriate resolution is essential.

If you or a loved one has suffered a catastrophic injury, contact the top-rated Illinois injury attorneys at John J. Malm & Associates for a free consultation. We will review your medical records and insurance landscape, consult the necessary experts, and pursue a recovery designed to meet immediate medical needs and long-term care requirements so you can focus on recovery and family stability.