Product Liability Lawsuit Settlements

When a consumer is injured by a product, the most common way to resolve a legal claim is through product liability lawsuit settlements. These settlements offer a way for injured parties to recover compensation without going through a lengthy and uncertain trial.

At Rosenfeld Injury Lawyers, our product liability attorneys in Chicago have represented countless clients across Illinois, helping them pursue fair and full compensation for the harm caused by defective products. Book a free consultation today!

What is a Product Liability Settlement?

A product liability settlement is a formal agreement between the plaintiff (the injured party) and the defendant (such as a manufacturer, distributor, or retailer) to resolve the claim without going to trial. In this agreement, the party held liable for the defect agrees to pay a negotiated settlement amount to compensate for the injury, avoiding the time and cost of litigation.

Why Most Cases Involving a Defective Product Settle

Over 90% of product liability claims settle before trial. This is because settlements offer important advantages to both sides:

• For the plaintiff, a settlement provides a guaranteed outcome, quicker access to compensation, and less emotional strain.
• For the defendant, settling avoids the risk of a jury trial, punitive damages, and negative publicity.

Additionally, settlements can be kept confidential, protecting both the injured party’s privacy and the company’s reputation. In cases involving multiple defendants, settlements may also allow for more efficient resolution among parties.

Is There an “Average” Settlement for Product Defects?

Many people ask what the average settlement is for a product liability case, but the truth is: settlement amounts vary depending on the facts of each case. Factors such as the type of product, the severity of the injury, and the strength of the evidence all influence the value of a claim.

Some injured parties recover a few thousand dollars in minor cases. Others, especially those who were severely burned, paralyzed, or permanently disabled, may receive millions in compensation. There is no reliable national average.

Key Factors Determining Product Liability Settlement Amounts in Illinois

Several key elements influence how much a settlement might be worth.

How Injury Severity Impacts Your Claim’s Value

The most important factor is the severity of the injury. Catastrophic injuries—such as amputations, spinal cord damage, traumatic brain injury (TBI), or fatal burns—warrant significantly higher compensation than injuries with full recovery.

For example, a person who is severely burned by a defective cooking appliance may face years of reconstructive surgeries, permanent disfigurement, and psychological trauma. In such cases, the settlement must reflect not just current medical expenses, but also emotional distress and long-term care.

Proving the Product Defect and Its Link to Your Injury

To succeed in a product liability claim, your attorney must prove that the product caused your injuries. This typically involves showing that:

• The product had a design flaw, manufacturing defect, or lacked proper warnings
• The product was being used as intended or in a foreseeable way
• The defect directly caused the injury

Strong evidence of a defect and a clear link to the harm can significantly increase the value of a settlement.

Calculating Economic Damages

Your personal injury attorney will also evaluate economic damages, which include:

• All past and future medical expenses (surgery, rehab, equipment)
• Lost wages due to time off work
• Loss of future earning capacity in cases of disability

In cases involving permanent injury or lifelong care, these financial costs can total hundreds of thousands—or even millions—of dollars.

Valuing Non-Economic Damages

Beyond financial losses, injured parties may be entitled to non economic damages for:

• Pain and suffering
• Emotional distress
• Scarring and disfigurement
• Loss of enjoyment of life
• Loss of consortium (in wrongful death or spousal claims)

Though more subjective, these damages are a critical part of any settlement. A skilled product liability lawyer will present strong supporting documentation, such as therapy records, expert opinions, and personal statements to support this value.

The Role of Insurance Coverage and Illinois Law

In Illinois, strict liability laws favor consumers. Under this doctrine, a manufacturer can be held liable for injuries caused by a product, even without proving negligence. This legal standard makes it easier for plaintiffs to succeed.

Illinois also does not cap compensatory damages, meaning there’s no legal limit on what an injured party can recover for medical expenses, lost wages, or non-economic harm.

That said, the defendant’s insurance policy limits can still influence the settlement amount—especially when there are multiple defendants or limited assets.

Our Law Firm’s Illinois Product Liability Settlements & Verdicts

Our firm has secured major product liability settlements on behalf of injured clients across Illinois. Here are a few examples:

• $11,000,000 for a factory worker who lost his dominant hand due to a defective punch press. We proved the manufacturer ignored prior safety complaints.
• $10,145,000 in an auto product liability case after a seat belt failure during a rear-end collision caused life-altering injuries.
• $7,300,000 for a roofer who suffered internal organ damage when a defective extension ladder collapsed 30 feet in the air.
• $5,250,000 for a woman who sustained devastating hand injuries while using a poorly designed circular saw in a shop class.
• $5,000,000 for a man who suffered double leg fractures after his safety harness failed while working on a high-rise building.
• $4,222,000 for a cook who was severely burned when a cooking spray can exploded due to poor product design.

These outcomes were achieved through relentless investigation, expert analysis, and strategic negotiation by our attorneys.

The Negotiation Process: Reaching a Fair Settlement

Most product liability claims are resolved through negotiation, not trial. The process involves:

• Sending a demand letter to the defendant or insurer
• Receiving initial offers, which are typically low
• Making counter-offers with supporting documentation (medical records, expert reports)
• Engaging in mediation if needed to reach common ground

Your attorney plays a crucial role in this process—defending your position, presenting evidence, and protecting you from pressure to accept less than your case is worth.

Why Experienced Legal Representation is Crucial for Fair Compensation

Product liability law is complex. You need a lawyer who understands not only legal standards like strict liability, but also how to work with engineers, medical professionals, and economists to build a complete case.

A qualified product liability attorney will:

• Investigate how the finished product failed
• Hire experts to analyze the defect
• Calculate full economic and non-economic damages
• Identify all responsible parties, including more than one defendant
• Negotiate aggressively to maximize the settlement

Without skilled representation, injured consumers often receive far less than they deserve—or nothing at all.

How Our Law Firm Pursues Maximum Settlement Value

At Rosenfeld Injury Lawyers, we take a strategic approach to every product liability case. We don’t just wait for offers—we build strong claims with powerful evidence to increase the pressure on the defendant to resolve the matter fairly.

We work with leading engineers, accident reconstructionists, and medical professionals to document exactly how the product caused the injury—and what the full consequences are.

Discuss Your Case: Schedule a Free Consultation

If you or someone you love has been injured by a defective product in Chicago or anywhere in Illinois, contact us to discuss your options. Our Chicago personal injury lawyers offer free consultations, and we work on a contingency fee basis—you pay nothing unless we win your case. Call (888) 424-5757 or fill out our online form. 

All content undergoes thorough legal review by experienced attorneys, including Jonathan Rosenfeld. With 25 years of experience in personal injury law and over 100 years of combined legal expertise within our team, we ensure that every article is legally accurate, compliant, and reflects current legal standards.