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Has research been done to determine if this place was one with previous deaths due to other than natural causes, i.e., how many suits, if any, have been filed against this facility?
What does the plaintiff's attorney say? He/she would have the best advice on what kind of case there is and the strength of it.
Insurance adjustors typically make offers to settle out of court and limit exposure. The decision on whether to go to trial could be based on a number of issues: competence and experience of the medmal attorney, the strength of the case, reports from doctors who have evaluated the records and opined on the level of malpractice, if any, whether you're emotionally and physically prepared to go through a trial and gamble all for a judgment or no cause (i.e., no liability).
How would you feel if a trial resulted in a jury determination that malpractice didn't take place? That's a major issue to consider.