88% of $7.1 Million Award Attributed to Punitive Damages

November 3, 2012 – Defense contractor KBR was recently found negligent by an Oregon jury for “knowingly” exposing National Guard soldiers to toxic chemicals while they were serving their country in Iraq according to CNN.

Each plaintiff was awarded $850,000 in non-economic damages and $6.25 Million in punitive damages in the $85 Million judgment.

Practice Pointer:  Although a defense appeal is planned, the plaintiff soldiers are urged to consider the tax implications of this settlement NOW in the event a post-judgment settlement is negotiated. 

Because the punitive component is fully taxable, utilizing a Non-Physical Injury Structured Settlement for this portion of the settlement holds tremendous potential to help mitigate the tax impact of such an award.

Our firm recently hosted a webinar on this very topic which explains the impact in detail.

To increase the chances for long-term financial security with a structured settlement following ANY judgment, clients are urged to analyze the tax consequences before accepting their verdict.  Proper planning can have a positive impact on the ultimate recovery and help plaintiffs keep as much of their award as possible.