If you are dealing with the tragedy of losing a loved one in an unexpected accident, no amount of money will make things right. Pursuing financial compensation through a wrongful death case, however, can bring your family justice, hold a wrongdoer accountable and give you greater financial peace of mind about the future. Find out what types of compensation, otherwise known as damages, may be available in your wrongful death lawsuit in New Mexico.
What Is a Wrongful Death Claim?
A wrongful death claim is a civil claim that can be filed by a deceased accident victim’s representative of the estate or surviving beneficiaries. The purpose of a wrongful death case is to hold an individual or entity accountable for the preventable loss of life and to compensate the decedent’s estate or loved ones for their related losses. Compensation awarded in a wrongful death claim can cover both economic (tangible) and non-economic (intangible) damages.
Funeral and Burial Costs
Each state has its own laws in terms of what damages are available in a wrongful death claim. Most states allow surviving family members to recoup the expense of the deceased individual’s (decedent’s) funeral and burial costs. This is money that the family or the estate would not have spent were it not for the defendant’s careless or wrongful acts. Thus, they are compensable damages in a wrongful death lawsuit in New Mexico. A family can expect reasonable funeral and burial expense reimbursement from a wrongful death settlement, generally up to $10,000.
Medical Expenses
If your loved one was not pronounced dead at the scene, there may be medical expenses related to his or her passing. If your loved one was taken in an ambulance to an intensive care unit before passing away, for example, someone will have to pay for these hospital bills. All of the medical costs arising from the decedent’s fatal illness or injury are recoverable damages in a wrongful death case in New Mexico.
Lost Wages and Earnings
A family can suffer greatly from the death of one of its earners – especially the breadwinner. Surviving family members may not have enough for the necessities, such as food and shelter. It is possible to recover financial compensation for the financial losses related to wrongful death, including lost wages and employment benefits that the decedent would have earned over his or her lifetime had the decedent lived. This also includes any other foreseeable financial contributions to the household by the victim.
Financial Contributions to the Household
It is also possible to recover compensation for financial contributions to the household that the victim would have made outside of work-related wages. This can include retirement savings, pension plans, health insurance, disability or Social Security benefits, and the value of lost household services. These contributions should be included in economic damage calculations.
Emotional Distress and Loss of Consortium
The law in New Mexico allows for the recovery of noneconomic damages, or the nonfinancial ways in which the death impacted surviving loved ones, as well. Non-economic damages may pay a reasonable amount in emotional distress and mental anguish connected to the death of a parent, child or spouse. It can also pay for loss of consortium – the loss of the benefits of a familial relationship. These may include lost affection, companionship, guidance, knowledge, care and counseling.
The Victim’s Pain and Suffering
Finally, a wrongful death lawsuit in New Mexico could pay for the deceased individual’s pain and suffering endured prior to death. This type of damage award is most common when the decedent did not die immediately. It can pay for physical pain, emotional distress, discomfort, psychological trauma and other intangible losses most likely experienced by the decedent in the time between the accident and the date of death.
Punitive Damages
The damages listed above all fall under the category of either economic or non-economic damages. Both are types of “compensatory damages,” meaning they are awarded to compensate a plaintiff and make him or her whole again. However, there is a second category of damages that are not awarded as often: punitive damages.
Punitive damages are designed to punish a defendant for egregious acts of wrongdoing. New Mexico law allows for punitive damages when a defendant is guilty of gross negligence, recklessness, maliciousness, or wanton and willful misconduct. They may be awarded in a wrongful death case involving a drunk driver or homicide, for example.
Who Receives Compensation Awarded in a Wrongful Death Case in New Mexico?
If a wrongful death claim results in a settlement or jury verdict being awarded in the plaintiff’s favor, the financial proceeds will be distributed among beneficiaries according to New Mexico’s laws of intestate succession. The New Mexico Wrongful Death Act determines how damages are distributed.
This law provides the following list of eligible beneficiaries:
- Surviving spouse (if there are no children): 100 percent.
- Spouse and children or grandchildren: 50 percent to the spouse and 50 percent divided among all children/grandchildren.
- Parents of a minor decedent: 50 percent each. If either parent is deceased, the surviving parent receives 100 percent.
- Surviving brother or sister if there is no spouse, child, grandchild or parent: 100 percent.
If there is no next of kin as included on this list, the judgment will be assigned to the decedent’s estate in the manner authorized by law. This may involve the proceeds going to more distant relatives, as determined by New Mexico’s intestacy laws. In general, wrongful death damages cannot be used to pay off the deceased person’s debts, as they are meant to compensate surviving family members.
Are Wrongful Death Damages Taxed in New Mexico?
The majority of damages awarded in a New Mexico wrongful death claim will not be taxed. Any compensation awarded with the purpose of compensating a loss, such as medical bills, funeral expenses and lost wages, is not considered taxable income by the Internal Revenue Service. This means the majority portion of a settlement or judgment award will not be taxed.
However, punitive damages are taxable under federal law. If your award includes an amount assigned in punitive damages, your family will have to report this as income earned for tax purposes. In addition, any interest awarded or medical bills that were previously listed as a tax deduction will be subject to taxation. Working with an experienced wrongful death attorney can help you structure your settlement to minimize tax liabilities as much as possible
How Much Is Your Wrongful Death Case Worth?
It is important to understand the true value of your wrongful death lawsuit in New Mexico. Insurance companies are notorious for using various tactics to minimize payouts and avoid paying clients altogether, even after the death of an accident victim. Learning the value of your case can help you avoid accepting a settlement that is less than your family deserves.
There is no average wrongful death settlement value. Every settlement and judgment award is calculated on a case-by-case basis. The best way to understand your case’s value is by consulting with a wrongful death attorney in Albuquerque. Unlike an insurance claims adjuster, an attorney will want to maximize the financial outcome of your lawsuit. An attorney will carefully review the facts of your case and the losses that your family has suffered because of the unexpected death. Then, your attorney will help you fight for maximum financial compensation.