This is an uncontested increased counsel fee application pursuant to R. 1:21-7(f) prior to the January 16, 1984 effective date of Amendments to R. 1:21-7(c) as to contingent fees. Although there was no written agreement as required by R 1:21-7(g), it was orally agreed that the R. 1:21-7(c) fee schedule would apply and plaintiff signed a "Preliminary Closing Agreement" concurring in the application for the increase pursuant to R. 1:21-7(f).
procedure known as retroperitoneal lymphadenectomy, his lack of urinal output was misdiagnosed as acute tubular necrosis. In fact, both renal arteries leading to his kidneys had been traumatized during the surgery. Subsequent corrective surgery was unsuccessful -- and the result is that plaintiff must undergo hemodialysis three times a week. His malpractice case, involving urology, nephrology, radiology, and oncology was ultimately resolved by a structured settlement of $500,000 cash and $50,000 a year for the rest of his life. For purposes of the fee application, the cost of the annuity was said to be $152,412. Later, it was disclosed to be $170,888 per attached Exhibit I. In any event, it is obvious that both the settling carrier, Princeton Insurance Company, and the annuity underwriter, Philadelphia Life Insurance Company, have used impaired or substandard life expectancy actuarial calculations -- since plaintiff's standard life expectancy would be about 46 years. Under these circumstances, no meaningful internal rate of return on the annuity investment can be ascertained. The combination of substantial "up front" cash and a lifetime tax-free annuity, however, constitutes a superb structured settlement of this case -- with advantages to all parties and the public. Plaintiff's short and long term needs have been well provided for in terms of money. Plaintiff's economist has calculated a present value of $545,009 for the annuity, at a 9% discount rate, if plaintiff lives the normal life expectancy of 46 years.
All delays and risks of trial and appeals have been avoided. Actuarial and investment principles have presumably been utilized as to the retained funds by the insurance companies to effect overall savings. The public benefits from reduced overall case disposition costs and the fact that plaintiff will never become a public charge.