After a serious auto accident on June 7, 2014, Tracy Morgan settled his claim with Wal-Mart, for a reported (but unconfirmed) for $90 million. The accident involved a Wal-Mart truck which struck a limousine with Morgan and his colleague James McNair, who died in the accident. The driver of the Wal-Mart truck has been charged with vehicular homicide and four counts of assault.
As a result of the incident, Morgan suffered a traumatic brain injury. It is likely that the settlement included compensation for lost future earnings, considering Morgan’s future earning potential as both a comedian and television star.
Despite Morgan’s alleged traumatic brain injury that was thought to leave him unable to perform, Morgan hosted Saturday Night Live on October 17, 2015, only slightly more than one year after the incident, showing millions of viewers that he can in fact continue to perform. The announcement that Morgan would be hosting SNL came about two months after the reported settlement with Wal-Mart.
In cases where severe, debilitating injuries are claimed, early high-sum settlement may not be the best solution. Medical examinations and testimony could have revealed how well Morgan was recovering, showing that future lost earnings should be limited.
Soon after the incident Morgan’s attorney stated publicly, “when you have a traumatic brain injury, it takes a very long time to find out how you’re going to do and how much you’re going to recover. You just don’t know. He’s still fighting and trying to live his life at the same time and trying to get better, and he’s just not better. We’re hoping and praying to get him back to where he was. But the jury’s out.” Morgan’s attorney stressed that recovery for a traumatic brain injury is often lengthy with a patients full potential for recovering unknown. Morgan’s performance on SNL demonstrate that his recovery has been better than expected.
Early settlement is often worth consideration, particularly when liability defenses are limited. Damages defenses, however, often require time to assess residuals. Thanks to Dana Purcaro for her contribution to this post. Please email Brian Gibbons with any questions.