Mass Tort Settlement

A mass tort settlement is a compromise or agreement reached by the parties involved in a mass tort case to resolve the issues in dispute and conclude their litigation. Mass-tort litigation generally poses many concerns, including fairness, justice, equality, equity, and ethics. As a result, the mass tort settlement process is generally more complicated than in individual personal injury cases.

How Are Mass Torts Settled?

Most mass tort cases in Texas are eventually settled out of court, as with most civil cases. Private (and confidential) agreements between the parties are typically reached to secure mass tort settlements. These agreements seek to resolve a group of plaintiffs' claims in exchange for a set total, maximum sum.

A mass tort settlement agreement is relatively simple. Although the agreement will apply to all the plaintiffs, it will not resolve each plaintiff's claims individually. As a result, the agreement will not specify the amount offered by the defendant for the release of any specific claimant's claims; instead, it will only indicate the total amount that the defendant will pay in exchange for the release of all of the plaintiffs' claims against the defendant.

Furthermore, the agreement will include a "participation threshold" that must be met before the defendant is required to comply with the settlement requirements. That is, if a predefined proportion of claimants whose claims are covered by the agreement do not agree to settle those claims per the agreement's provisions, the defendant has the right to cancel the agreement and not proceed with the settlement.

Furthermore, if the agreement is not canceled, but some of the covered claimants do not eventually participate in the settlement, the overall amount the defendant is expected to pay will typically be reduced. Overall, a mass tort settlement lays out the general parameters through which the plaintiffs would receive individual offers to settle the claims they have made against the defendant.

How Long Does It Take to Settle a Mass Tort Case in Texas?

There is no set approach for estimating or forecasting how long a mass tort suit will take. While some disputes can be resolved in a few years, others may take much longer to settle. Compared to cases that go to trial, mass tort claims that are settled are resolved far more rapidly.

Mass Tort Settlement Amounts

Mass tort cases can result in substantial benefits for victims, and these claims usually result in large settlements or judgments. The amount of the settlement is typically determined by the extent of the damages and the number of claimants involved. Usually, millions or even billions of dollars are involved. For example, in July 2018, 22 plaintiffs who claimed that Johnson & Johnson purposefully promoted talcum powder products linked to ovarian cancer were awarded $4.7 billion in compensation.

How Long Does a Mass Tort Claim Usually Last?

Because mass tort cases are much more complicated than personal injury claims, there is no typical timeline for how long they usually last. This is because a mass tort claim comprises several plaintiffs suing one or more defendant entities. As a result, various variables may lengthen the process until a resolution is reached. Examples of such time- and effort-consuming variables include the selection of cases for bellwether trials, exchanging information between parties, and consultation with potentially hundreds of plaintiffs.

Factors That Influence Mass Tort Timelines

Factors that may influence the duration of mass tort litigation include:

• Finding expert witnesses and organizing deposition testimony
• Traveling to several locations to gather testimony and interview possible litigants
• Conducting research, investigations, and amassing a large amount of evidence
• Uncooperative defendant(s) refuses to make a reasonable settlement offer or participate in settlement negotiations.
• Filing the claim and all necessary papers (including the complaint, answers, and other motions)
• Discovery (when the parties must exchange facts and documents that are pertinent to the case)
• Settlement discussions
• Trial (including jury selection, arguments, witness testimony and presentation of evidence, and verdict)
• Collection of settlement or award
• Appeals.

Is a Mass Tort Claim Worth the Effort?

Mass tort cases may be worth the time, money, and effort invested, depending on the nature of the claims involved. Plaintiffs in mass tort claims benefit from "strength in numbers." The claims provide the benefit of combining large resources to handle complex issues such as legal funding.

Generally, the plaintiffs bear the burden of proving that their injuries are genuine and that the defendant's conduct caused them. Proving causation can result in significant costs involved with establishing their case. Consequently, mass tort claims are usually expensive to prove, and civil wrongs may go unresolved and without compensation, if affected parties cannot afford to take on large firms alone. However, plaintiffs in mass torts benefit from pooled resources, and the expenditures associated with proving causation are borne by all of the plaintiffs, as opposed to the circumstance in which each plaintiff would have to establish their case individually.

How Are Compensation Handled in a Mass Tort Claim?

Plaintiffs' compensation in mass tort claims is organized so that any payment obtained via the claim is not shared. Instead, each claim is still treated as an individual personal injury case, and the facts of the case are evaluated on their own merits, including exposure, causation, injuries, and damages. As such, compensation varies from plaintiff to plaintiff. Still, the claimants have the option of accepting or rejecting a settlement. If a group settlement cannot be reached, each plaintiff engaged in the mass tort lawsuit may have their individual suits tried or settled separately.

Individuals or entities involved in mass tort litigation may be entitled to a broad range of compensatory damages, including:

• Existing and future medical bills
• Disability and disfigurement
• Physical therapy and long-term care
• Lost wages because of the time needed for recovery
• The impact of the injury on victims’ professional and personal lives
• Pain and suffering
• Mental and emotional damages, etc.

In some cases, the court will also impose punitive damages to penalize the defendant(s) if their behavior is deemed highly negligent.

Why Is It a Good Idea to Have Separate Settlement Counsel?

Having a separate settlement counsel in mass torts cases is a good idea because they assist in the settlement process. A settlement counsel is an attorney or mass tor settlement law firm that is hired for the sole goal of resolving a lawsuit. Because of the complicated nature of mass tort settlements, successfully negotiating and managing hundreds of thousands of settlements requires innovative solutions and elaborate procedures. The settlement counsel is responsible for handling every part of the process, and their responsibility is to devise and execute plans that will lead to the earliest and best possible settlement.

The settlement counsel's representation is founded on the premise that advocating for a case to be litigated is not the same as pressing for it to be settled. As such, hiring a separate settlement counsel allows the trial or litigation counsel to focus on the more pressing obligations required to gain an edge in a mass tort case. For example, it allows trial counsel to focus on understanding the issues that will be contested in the trial by shielding the team from potential distractions and the complexities of settlement. The case can be prepared more successfully this way. If the settlement falls through at the last minute and the case goes to trial, the trial counsel will not have to divide their time between negotiating a settlement and preparing a defense.

Furthermore, because of the nature of mass tort litigation, litigators on the front lines representing their clients must sometimes deal with extraordinarily negative contacts with opposing counsel. Given the existing circumstances, it is not the most realistic option to ask these same litigators to negotiate complex settlements with the opposing lawyers they have been battling against. A separate settlement counsel, on the other hand, can keep lines of communication open and working relationships intact. This guarantees that when a settlement is deemed suitable, the settlement counsel may get to work without delay.

Additionally, while many trial attorneys are skilled advocates and tacticians, the skill set required to litigate a case before a jury is not always the same as that required to organize and manage the successful settlement of a mass tort case. As a result, being a settlement counsel necessitates a sophisticated understanding of mass tort settlement strategies and models, as well as mastery of the technical aspects of large-scale settlement administration, effective communication, and so on. As a result, establishing a separate settlement team provides clients with committed specialists who can focus on strategy and settlement, freeing up trial attorneys and other litigators to focus on other aspects of the legal action.

When Should You Retain Settlement Counsel?

Early deployment of settlement counsel in a mass tort lawsuit provides the best opportunity to reach desirable agreements. Settlement counsel is ultimately more efficient for clients since they may coordinate strategic activities, create connections with stakeholders, and assess pressure points or interests of opposing counsel at an early stage. Because a mass tort will almost certainly be settled, it is in all parties' best interest to have settlement counsel establish the framework as soon as possible.

Also, because of the nature and complexity of the cases involved, mass torts are inherently complicated litigations; hence, strategic foresight is essential to successfully and rapidly conclude these cases. Appointing separate settlement counsel may help speed up the process of settling the case. When trial counsel delegates this task to a team that will devote their whole attention to it, they avoid the potential distraction of settlement. The clients’ objectives are achieved through the efficient use of specialized individual skill sets.

Overall, because these advantages strengthen the defense and encourage efficiency in the long run, defendants should consider employing settlement counsel early in a mass tort so that all possibilities may be systematically investigated and developed wisely while the mass tort is still in its infancy.

How Do I Find a Lawyer in Texas?

When an individual or their loved one has suffered loss or injuries resulting from the negligence or tortious actions of a manufacturer or organization, it may be difficult to determine if they have a lawful claim against the potential defendant. However, speaking to a mass tort attorney with expertise in similar cases is an important first step to getting the right representation, legal advice, compensation, or resolution they need.

To speak with an attorney, an individual can ask for a referral from friends and family for a mass tort lawyer near their location or conduct an online search with keywords such as “mass tort attorneys near me “ or “mass tort attorney in city or county, in Texas” for mass tort attorneys in their counties or cities, or near their residence.

Also, interested individuals may use the certified lawyer referral service of the State Bar of Texas.

It is important to ask the mass tort litigation attorney questions relating to past practice experience and professional opinion on the peculiarities of the individual’s case and do a little research on the attorney’s reputation.