Attorney Elan Wurtzel discusses a recent case where a mother and her young daughter were gravely injured in a pedestrian accident. The family’s lives were drastically altered after being struck by a car while crossing the street, resulting in severe injuries and multiple surgeries. Elan shares how the case, strengthened by dashcam footage, led to a two-million-dollar settlement.
Additionally, he explains the advantages of structured settlements, particularly for minors. He offers valuable advice on managing significant settlement funds to ensure long-term financial security for clients recovering from life-changing events.
Elan Wurtzel: We recently settled a case for two million dollars involving a mother and her daughter who were very seriously injured in January 2022. The mother had picked up her three children from school and walked home together. They were crossing the street with a green light, in a crosswalk, when a driver, coming out of a shopping center, made a left turn through the crosswalk and crashed into them. The mother and one of her daughters were gravely injured. The mother sustained a Lisfranc fracture of her foot, which is a disruption of the ligaments and fractures of bones in her foot. This injury required multiple surgeries, and she now has permanent issues.
Her daughter was also injured, suffering a fracture of her femur—her thigh bone. She was dragged by the car, causing disfiguring friction burn on her other leg. At the time, her daughter was only five or six years old. Multiple surgeries were needed to treat these injuries.
After the accident, they couldn’t live in their home because they weren’t ambulatory and needed wheelchairs. Since they lived in a building without an elevator, they had to relocate to a relative’s home in Queens for about six to eight months. That building had elevators, so it was more accessible. During this time, her children had to be homeschooled because they couldn’t attend their regular school. Once they could walk again, the family relocated to a new neighborhood on Long Island, and the children started attending a new school.
What made this case stand out in court?
Elan Wurtzel: One fascinating aspect of this case was that the driver had a dashcam in his car, which captured the entire accident. You can see everything, from when he pulled out of the shopping center to when he made his left turn and crashed into my clients, never once slowing down. We filed a motion with the court for summary judgment in favor of our clients. The driver’s defense was that the sun blinded him, and he couldn’t see due to the glare. The video undermined that argument because, while there was some glare, the dashcam—showing the same view the driver had—captured the road, the people, and everything in between. The sun glare didn’t prevent being able to see my clients crossing the street.
The court granted us judgment, and the remaining question was how serious the injuries were and their value. We had many discussions with the insurance company, tried to settle the case, and participated in multiple mediation sessions that initially didn’t result in a settlement. The case was on the court’s trial calendar when, before it went to trial, the insurance company offered the total limits of their policy—two million dollars—to settle the mother and daughter’s claims. With the assistance of the court, the settlement was accepted.
Because the daughter was under 18, we had to take another step: obtain formal court permission to settle the case on her behalf. We handled all the necessary work, and the court issued an order granting the mother the authority to settle the case for her daughter. In cases involving young children, we often recommend a structured settlement instead of simply placing the settlement funds in a bank account, which generates a small amount of interest that is taxable. A structured settlement involves using the settlement sum to purchase an annuity policy that pays out money over time based on what the parent deems appropriate for the child.
Why should you choose a structured settlement for a child’s injury case?
The advantage of this approach is that, due to the interest component of the annuity policy, you can sometimes double the settlement amount over a long period. That’s what we did here. When this child reaches 18, which is more than ten years from now, a substantial fund of money will be available for her—for college, buying a house, or whatever she needs. The growth in the annuity is tax-free, which is a tremendous advantage. This structured settlement guarantees that she will have significant financial resources.
Is it typical for a lawyer to advise on how to invest the settlement money or what kind of settlement to pursue?
Elan Wurtzel: When you say “type of settlement,” you’re referring to a structured settlement. When dealing with substantial settlement amounts for a young child, where the money can’t be touched until they turn 18, a structured settlement is an excellent tool because it creates long-term value for the injured party. You can also use this for adults of any age. There are many advantages to it and you can set up the future payments in a variety of options: lump sum payments; periodic payments; monthly or annual income payments, etc…. All of the money received is tax free.
There are pros and cons. Sometimes, people prefer receiving their settlement in one lump sum because they want to use it to buy something, like a house, or fund another venture. They may also think they can invest better in it on their own. With the rising interest rates in recent years, annuities have become more attractive. About 20 years ago, annuity interest rates were as high as 12%. Before interest rates rose again, they were down to about 2%. When we settled this case, the rate was approximately 5%, which was excellent, compared to other investment options.
Another issue is that sometimes people who receive a large sum of money need more management experience. We’ve had clients who received significant settlements only to call us later because they had to file for bankruptcy or were having financial problems. A structured settlement helps manage the funds, keeps them secure, and can provide for your future—whether that’s retirement, college, or your family. It’s a great tool, but it’s not for everyone. For children under 18, though, it can be an incredibly beneficial option. For adults, it depends on how they want to handle their money.
That’s excellent, knowing you go the extra step to ensure the money lasts their lifetime.
Elan Wurtzel: Yes, and there are so many professionals out there—financial advisors and planners—who can offer expertise on investing and managing the money. When clients have substantial recoveries, we can suggest professionals they can talk to about financial management.
