When a birth injury lawsuit is settled, money is first paid out of the settlement to the various parties who are owed money, such as doctors who haven’t been paid for treating the child, the lawyer for fees and expenses, the insurance company, and to parents for their out-of-pocket payments to doctors.
There are states where the remainder of the settlement money can be paid to the parents to be used on the child’s behalf; but in general, the remainder of the settlement is placed in a blocked account and/or an annuity, both of which limit a parent’s ability to spend the settlement money in a manner not benefiting the child. A blocked account is a bank account that only the court can control. The annuity pays out to the injured child when he or she reaches the age of majority. When the settlement involves an annuity, it is referred to as a structured settlement.
Parents also may receive damages as a result of their own claims stemming from the birth injury. For example, some parents will receive damages for emotional suffering and/or for the costs associated with caring for an injured child.
Seek the advice of an experienced personal injury attorney right away if you and/or your baby has suffered from birth injuries. You can also have your case evaluated for free by completing a case evaluation form.