Legal Definitions - settlement-first method

The settlement-first method is a way to apply a settlement credit to a jury verdict in a legal case. This is done by first subtracting the amount of all settlements the plaintiff has received on the claim from the total amount of the verdict. Then, the remainder is reduced by the percentage of the plaintiff's comparative fault. This method is different from the fault-first method.

For example, if a plaintiff receives a $100,000 jury verdict and has already received $50,000 in settlements, the settlement-first method would subtract the $50,000 from the $100,000 verdict, leaving $50,000. If the plaintiff is found to be 50% at fault, the final settlement amount would be $25,000.

This 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 have already been compensated through settlements.