“Wrongful Death Settlements” in California – How It Works

Wrongful death settlements reimburse you for damages (monetary losses) stemming from your family member dying in an accident. The process of pursuing a wrongful death settlement in California is largely the same as bringing a personal injury claim, with some exceptions.

What damages can I get?

When negotiating a wrongful death settlement, we pursue enough money to cover all of your compensatory (out-of-pocket) damages. This includes:

• Financial support you would have received from your loved one,
• Loss of consortium, and
• Funeral/burial expenses.

You can also pair the wrongful death lawsuit with a “survival action” to reimburse your loved one’s estate for all the damages they suffered prior to their death. This includes:

• Medical bills,
• Lost wages,
• Property damage, and¹
• Pain and suffering.²

California survival actions also allow you to pursue punitive damages, which are meant to punish the defendants for their behavior.

What is the average settlement?

It varies depending on the circumstances of the wrongful death.

Cases that involve no litigation often settle for up to $10,000 – a standard policy limit for wrongful death insurance.

Though many settlements top six- or seven figures. This is more common when defendants know they risk having to pay even more if the case goes to trial and the verdict comes out against them.

Some recent settlements that made the news in California include:

• $10,000,000 for a fatal car accident caused by an off-duty police officer (Dominguez v. City of San Diego)
• $5,300,000 for a death caused by excessive use of force by police (Sommers v. City of Santa Clara, et al.)
• $5,000,000 for a fatal pedestrian knockdown in a commercial truck accident (Harder, et al. v. Golden State Portables, et al.)
• $3,000,000 for a fatal exposure to Legionnaire’s Disease in a hotel (Winfield v. YTLife Investments, LLC, et al.)

Note that there are certain factors that are not taken into account during wrongful death settlement negotiations. These include:

• your own grief, sorrow, or mental anguish, and
• either your financial health or the victim’s.³

Are damages capped?

There are no damage caps in California wrongful death cases, with one exception: Non-economic damages in fatal instances of medical malpractice. A common example of non-economic damages is loss of consortium.

In 2024, compensation for these losses is capped at $550,000 in California. The cap will increase by $50,000 annually until it reaches $1,000,000 in 2033.⁴

Am I eligible to bring a wrongful death case?

In California, a wrongful death lawsuit can be filed by the deceased person’s:

• surviving spouse or domestic partner,
• children,
• grandchildren, and/or
• other descendants or financial dependents, as defined by California’s wrongful death statute.⁵

If the lawsuit is brought my more than one family member, then any settlement would be divided between them.

Note that settlements in a survival action go directly to the deceased person’s estate. That money would then go towards the estate’s debts or get distributed in accordance with the estate plan.

How long does it take to get paid?

California insurance companies have up to 40 days to respond to wrongful death demand letters. At that point, the majority of claims settle within three months.

However, settlements can take longer if the insurance company needs extra time to investigate or review the claim or if there are other complicating factors.

In the rare event negotiations fail, it could take a year or longer before the case goes to trial. If you win, the defendant can still appeal, delaying things further and racking up court costs. That is why we try to resolve cases without any heavy litigation.

Note that California’s statute of limitations for wrongful death claims is two years from the date of your loved one’s death. Since evidence tends to disappear with time, you are advised to bring your lawsuit right away.⁶

Should I take a lump sum or a structured settlement?

In most cases, we advise you take a lump sum settlement. That way you get all the money upfront.

Though in some situations, it may make more sense to accept a structured settlement where the insurance company pays you in increments over a set time. This way you do not risk blowing through your entire settlement quickly, and it serves as an extra source of income long-term.

Once you agree to a structured settlement however, the terms usually cannot be changed even if your circumstances change. That is another reason why we generally prefer lump-sum settlements.

Are wrongful death settlements taxed?

In general, wrongful death settlements do not count as earned income on your tax return. The same goes for personal injury/illness settlements.

One exception is if you previously deducted your decease relative’s accident-related medical bills. In this situation, you would be taxed for the medical damages of the wrongful death settlement.

Wrongful death cases last a few weeks to several years depending on whether they settle or go to trial.

Additional resources

For more in-depth information, refer to the following scholarly articles:

• Hedonic Damages for Wrongful Death: Are Tortfeasors Getting Away with Murder – Georgetown Law Journal.
• Pain and Suffering Damages in Wrongful Death Cases: An Empirical Study – Journal of Empirical Legal Studies.
• An Economic Analysis of Tort Damages for Wrongful Death – NYU Law Review.
• Money, Sex, and Death: Gender Bias in Wrongful Death Damage Awards – Law & Society Review.
• Wrongful Death–Bases of the Common Law Rules – Vanderbilt Law Review.

Legal References: