Simple English definitions for legal terms
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Fault-First Method: A way to calculate how much money someone should receive in a lawsuit. First, the amount of money is reduced by how much the person suing is responsible for the problem. Then, any money they already received from settling the case is taken out. This is different from the settlement-first method, which takes out the settlement money first.
The fault-first method is a way to calculate a settlement credit for a jury verdict. It involves reducing the amount of the verdict by the percentage of the plaintiff's comparative fault, and then subtracting any settlements the plaintiff has received on the claim from the remaining amount.
For example, if a plaintiff is awarded $100,000 in a lawsuit but is found to be 25% at fault, the verdict would be reduced by $25,000. If the plaintiff had already received a $10,000 settlement, that amount would be subtracted from the remaining $75,000, resulting in a final award of $65,000.
The fault-first method is used to ensure that the plaintiff is not overcompensated for their damages and that the defendant is not held responsible for damages that were caused by the plaintiff's own actions.