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Editor: Daniel J. Alvarez, J.D.
Profession: Settlement Planner, Millennium Settlements

Category: Case Law Updates

In 1982, Christina Grillo was injured at birth at a hospital in Texas. Her family filed suit against the attending physician asserting negligence caused quadriplegia, blindness, and seizures. Life care plans estimated her future needs and costs to hit $20 million. The case settled to cash in 1990 for $2.5 million.

As the facts show, 90% of all lump sum payments are completely depleted within 3-5 years. The Grillo family was no exception and spent the settlement quickly. As a result, the Grillo family sued the child's attorney and guardian ad litem. Their lawsuit asserted the case should have never settled for cash and the attorneys should have insisted on a structured settlement. The attorneys' failure to employ or consult competent and correctly informed experts on taxation, trusts and/or structured annuities led to a malpractice settlement in excess of $4 million.

The important item in the case is that a structure was offered to the plaintiff party and the proposal was rejected. However, the plaintiffs did not have an expert on their side.