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Personal Injury Law

Negligence

What is the difference between a lump-sum settlement and a structured settlement?

The difference between a lump-sum settlement and a structured settlement centers on when the plaintiff receives the monies from the tortfeasor or the tortfeasor’s insurance company. A plaintiff who receives all of her money in one payment up front has received a lump-sum settlement. A plaintiff who receives periodic payments stretched out over a period of years has received a structured settlement.



Punitive damages can be capped by state law; tort reform efforts are designed to limit how much plaintiffs can receive in compensation (iStock).
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