Mesothelioma Settlements

Average Settlement & Verdict Amounts

The average mesothelioma settlement ranges from $1 million to $2.4 million, while jury verdicts average $5 million to $11.4 million. Use our compensation estimator tool to get a preliminary estimate for your case. Settlement amounts vary based on disease severity, age at diagnosis, extent of asbestos exposure documentation, number of responsible companies identified, and jurisdiction. Most mesothelioma cases (over 95%) settle before trial, typically within 12 to 18 months of filing.

Average Mesothelioma Settlement

The average mesothelioma settlement ranges from $1 million to $1.4 million. Settlements are negotiated agreements between the plaintiff and one or more defendants, reached without going to trial. Approximately 95% of mesothelioma cases are resolved through settlement, which offers the advantages of a faster resolution and guaranteed payment. Settlement amounts can vary significantly depending on the specific facts of each case, the defendants involved, and the jurisdiction. For more detail, see our answers on average mesothelioma settlements and how much a mesothelioma case is worth.

Average Mesothelioma Verdict

Mesothelioma trial verdicts average $5 million to $11.4 million, significantly higher than settlements because juries can award punitive damages in addition to compensatory damages. Punitive damages are intended to punish defendants for particularly egregious conduct, such as knowingly concealing the dangers of asbestos from workers and the public. While verdicts can be substantially larger, they carry the risk that a jury may return a lower award or, in rare cases, find for the defendant.

Compensation by Source

Settlement vs. Trial: Pros & Cons

The decision to accept a settlement or proceed to trial is one of the most important choices in a mesothelioma case. Your attorney will provide guidance based on the specific circumstances of your case, but ultimately the decision rests with you and your family.

Settlement Pros & Cons

Trial Pros & Cons

How Settlements Are Negotiated

Mesothelioma settlement negotiations can occur at any stage of the legal process, from shortly after filing through the eve of trial. The process typically involves:

• Demand letter — your attorney sends a detailed demand to each defendant, outlining the evidence of your exposure, the defendant's liability, and the damages sought
• Defense response — defendants evaluate their exposure and make an initial settlement offer, which is typically well below the actual value of the case
• Negotiation rounds — your attorney and the defendants' attorneys engage in back-and-forth negotiations, often over several weeks or months
• Mediation — in some cases, a neutral mediator facilitates settlement discussions between the parties
• Final agreement — once both sides agree to a settlement amount, the terms are put in writing and payment is typically made within 30 to 90 days

Tax Implications & Payment Options

Understanding how a mesothelioma settlement will be taxed and how you can receive payment is an important part of financial planning for patients and families. The tax treatment depends on the type of damages awarded, and the payment structure can be tailored to your needs.

Tax Treatment of Mesothelioma Settlements

Under IRS guidelines (IRC Section 104), the tax treatment of mesothelioma settlements depends on the category of damages:

• Compensatory damages for physical injury — compensation for medical expenses, pain and suffering, loss of physical function, and emotional distress related to the physical injury is generally not taxable
• Lost wages — the portion of the settlement allocated to lost wages may be subject to income tax and employment taxes, depending on how the settlement is structured
• Punitive damages — punitive damages are always taxable as ordinary income, regardless of whether they are awarded in connection with a physical injury
• Interest — any interest accrued on the settlement amount before payment is taxable as ordinary income

Structured vs. Lump Sum Payment

Mesothelioma settlement payments can be structured in two primary ways, each with its own advantages:

Lump Sum Payment

• Entire settlement amount is paid at once
• Provides immediate access to full funds for medical treatment and financial needs
• Most common option for mesothelioma settlements
• Patient and family have full control over how funds are used and invested

Structured Settlement

• Settlement is paid in periodic installments over a defined period (months or years)
• Provides a guaranteed income stream for the patient or surviving family members
• Payments from a structured settlement for physical injury are generally tax-free, including any growth on the annuity
• Can be designed to increase over time to account for inflation or changing needs

How Long to Receive Payment

Once a settlement agreement is finalized, payment is typically received within 30 to 90 days. The exact timeline depends on the number of defendants settling, the complexity of the payment arrangements, and any court approval requirements. Trust fund claims are typically paid within 60 to 180 days of approval. Your attorney will keep you informed of the payment timeline and ensure funds are distributed as quickly as possible.