Legal Definitions - fault-first method

The fault-first method is a specific legal calculation used by courts to determine the final amount of money a defendant must pay a plaintiff after a jury has awarded damages. This method is applied in cases where the plaintiff themselves was found to be partly responsible for their own injuries (known as "comparative fault") and has also received money from pre-trial settlements with other parties involved in the incident.

The "fault-first method" follows a two-step process:

• Step 1: Account for Plaintiff's Fault. The total amount of damages awarded by the jury is first reduced by the percentage of the plaintiff's own comparative fault. This means the plaintiff's share of responsibility for the harm is deducted from the total award upfront.
• Step 2: Deduct Settlements. From this newly reduced amount (after the plaintiff's fault has been considered), any money the plaintiff has already received through settlements from other defendants or responsible parties is then subtracted.

This approach ensures that the plaintiff's own contribution to their harm is addressed before any prior settlements are credited, ultimately determining the remaining amount the current defendant owes.

Examples:

• Scenario: Multi-Vehicle Accident

  Imagine a plaintiff, Sarah, was involved in a three-car collision. A jury determines her total damages are $150,000. However, the jury also finds that Sarah was 10% at fault for the accident because she was slightly speeding. Before the trial, Sarah settled with the driver of the third car for $40,000. Now, the court needs to determine how much the second driver, Mark, owes using the fault-first method.

  • Step 1 (Fault First): The jury's total award of $150,000 is reduced by Sarah's 10% fault. $150,000 - (10% of $150,000) = $150,000 - $15,000 = $135,000.
  • Step 2 (Settlement Second): From this $135,000, the $40,000 Sarah received in settlement from the third driver is subtracted. $135,000 - $40,000 = $95,000.

  Explanation: Using the fault-first method, Mark would be ordered to pay Sarah $95,000. This calculation first ensures Sarah's own responsibility for the accident is factored in, and then credits Mark for the money Sarah already received from another party.

• Scenario: Defective Product Injury

  A plaintiff, David, was injured while using a power tool. The jury awards him $250,000 in damages, but also finds David 20% at fault for not following the safety instructions. Before trial, David settled with the retailer who sold him the tool for $60,000. The court now applies the fault-first method to determine the liability of the tool manufacturer.

  • Step 1 (Fault First): David's total damages of $250,000 are reduced by his 20% comparative fault. $250,000 - (20% of $250,000) = $250,000 - $50,000 = $200,000.
  • Step 2 (Settlement Second): From this $200,000, the $60,000 David received from the retailer settlement is subtracted. $200,000 - $60,000 = $140,000.

  Explanation: The manufacturer would be responsible for paying David $140,000. This demonstrates how David's own negligence in using the tool is accounted for before the settlement from the retailer is applied, ensuring the manufacturer's final payment reflects both factors.