A. If special findings for future damages are made, the court shall enter judgment pursuant to the following procedures:

Terms Used In Arizona Laws 12-586

  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Claimant: means a person suffering bodily injury, a person claiming on behalf of or as a result of bodily injury to another person, the representative of the estate of a deceased person or a beneficiary of a wrongful death action. See Arizona Laws 12-581
  • Contract: A legal written agreement that becomes binding when signed.
  • Costs of health care: means medical, custodial, rehabilitative and related expenses. See Arizona Laws 12-581
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Future damages: means economic loss and noneconomic loss arising from bodily injury that accrues after trial of a claim under this article. See Arizona Laws 12-581
  • Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
  • Past damages: means economic loss and noneconomic loss arising from bodily injury that have accrued before a claim is tried under this article, including punitive or exemplary damages. See Arizona Laws 12-581

1. The court shall apply to the findings of past and future damages any applicable rules of law in calculating the respective amounts of past and future damages each claimant is entitled to recover and each party is obligated to pay.

2. The court shall specify payment of attorney fees and litigation expenses separately from the periodic installments payable to the claimant pursuant to any agreement entered into between the claimant and his attorney. Under a percentage attorney fee contract, unless the contract specifies otherwise, the portion of the fee applicable to the recovery of the periodic installments of future damages is computed by multiplying the fee percentage times the cost of an annuity which would satisfy the funding requirements under sections 12-587 and 12-588.

B. A reduction in installments of future damages made pursuant to this section for payment of attorney’s fees shall reduce proportionally all periodic installments for future damages.

C. The court shall enter judgment in lump sum for past damages and for any future damages payable in lump sum or otherwise under this section. The court shall also enter judgment for the payment in periodic installments of the remaining amounts of future damages, without reduction to present value. The periodic installments shall be set forth in the judgment in a schedule that shows the annual amount due in each year the trier of fact has found that losses will accrue. If a finding has been made that costs of health care will continue for the duration of the claimant’s life, the judgment shall set forth the finding and the amount of those annual losses.