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Tax Consequences of a Settlement in a Tort Action

When a plaintiff and a defendant enter into a settlement of the plaintiff's tort action, the tax consequences of the settlement will depend upon whether the damages are allocated in the settlement agreement.

Pain and Suffering Damages

An injured plaintiff has the right to recover damages for pain and suffering that he might suffer as a result of a defendant's tortious act against the plaintiff. Pain and suffering damages frequently constitute the largest portion of personal injury awards.

Action by a Parent for a Tort against His or Her Child

In accordance with general tort principles, a person who injures a child through his or her tortious conduct is liable to the child for the child's damages. A parent who is entitled to the child's services or who has a legal duty to provide medical treatment for the child is also entitled to damages from the person for the person's tortious conduct towards the child.

Damages in Actions Involving Recreational Boating Accidents

When an action involving a recreational boating accident is brought in accordance with federal admiralty law, such federal admiralty law controls the issue of damages. Damages under federal admiralty law are similar to damages under the common law.

Defense of Property

Generally, a person has a legal right to use reasonable force to prevent the commission of a tort (such as trespass or conversion) against his or her property. Therefore, if a person uses force to prevent the commission of a tort against his or her property and he or she is sued for assault, battery, or another intentional tort, he or she may claim defense of property as a defense to the action. A person is required to make a request to desist before using force to defend his or her property unless such a request would be futile or dangerous.