Have you ever wondered whether a personal injury settlement or a court award is the better option? This decision is crucial. It can affect how quickly you receive compensation. It can also impact the total amount you recover.
Below, we explain the differences between the two options. We also discuss their benefits so you can make an informed choice.
Personal Injury Settlements: A Faster Resolution
A personal injury settlement is a negotiated agreement. It is reached between the injured party (plaintiff) and the at-fault party (defendant). In most cases, the defendant’s insurance company is involved. Settlements are finalized outside of court. They aim to compensate the plaintiff without the need for a trial.
How the Process Works
- Filing a Claim: The injured party’s attorney files a claim. This claim is typically filed against the defendant’s insurance company.
- Negotiation: Both parties negotiate the terms of the settlement. This includes deciding the compensation amount.
- Agreement: Once the parties agree, the plaintiff signs a release. This prevents any further legal action against the defendant.
Benefits of Settling
- Faster Resolution: Settlements are usually faster. They avoid the long process of going to trial.
- Lower Costs: Both parties avoid high court fees and extended legal expenses.
- Certainty: The plaintiff receives guaranteed compensation. There is no risk of losing at trial.
Example
A person was injured after slipping on a wet floor in a store. The store’s insurance company offered a settlement. The plaintiff accepted an amount slightly lower than what a trial might have awarded. However, they received the money quickly. This avoided the stress and expense of a court case.
Court Awards: The Higher Stakes Route
Court awards are decided by a judge or jury. These occur during a trial when the two sides cannot reach a settlement. Unlike settlements, court awards are based entirely on evidence. The court decides the total amount of damages. This can include compensation for pain and suffering, lost wages, and punitive damages.
How the Process Works
- Filing a Lawsuit: If settlement talks fail, the injured party’s attorney files a lawsuit.
- Discovery Phase: Both parties gather evidence. This may include witness statements, photos, and medical records.
- Trial and Verdict: A judge or jury reviews the evidence. They determine liability and calculate the compensation amount.
Benefits of Going to Court
- Higher Compensation: Juries often award higher amounts than initial settlement offers.
- Proving Liability: A favorable verdict clears the plaintiff of shared blame.
- Punitive Damages: Courts can impose penalties on the defendant. This deters future negligence.
Example
A driver was injured in a car accident caused by another motorist. The insurance company offered a low settlement. The plaintiff decided to go to court. During the trial, the jury awarded them a much larger sum. This included additional punitive damages to punish the defendant.
Key Factors to Consider: Settlement vs. Court Award
Every personal injury case is different. Many factors influence whether to settle or pursue a court award.
- Insurance Company’s Willingness to Pay
Some insurance companies refuse to offer fair settlements. Filing a lawsuit can pressure them to negotiate seriously.
- Strength of the Evidence
Strong evidence can result in a higher award at trial. Weak evidence, however, may make a settlement the better choice.
- Urgency of Compensation
If you need money quickly, a settlement may be the best option. Trials can take years to conclude.
- Costs of a Trial
Trials are expensive. Legal fees for court awards are usually higher (up to 40%). Settlements have lower fees, often around 33%.
Why You Need an Experienced Attorney
Personal injury cases can be complex. An experienced attorney will guide you through the process. They will evaluate your case and negotiate with the insurance company. If necessary, they will represent you in court.
What an Attorney Does for You
- Analyze your case to determine its strength.
- Negotiates directly with the defendant or their insurer.
- Prepare your case for trial if a court award is needed.
Statute of Limitations: Don’t Miss the Deadline
In Texas, personal injury claims must be filed within two years. This deadline begins on the date of the injury. Failing to file on time means losing your right to seek compensation. Some exceptions exist. For example, cases involving minors may allow extra time to file.
Conclusion
Deciding between a settlement and a court award depends on your circumstances. Settlements are faster and less costly. However, court awards can provide higher compensation if evidence supports your claim. Consulting a skilled attorney ensures you make the right choice.
If you or a loved one has been injured, Clay Hinds is here to help. We are experienced lawyers in Dallas County, Texas, dedicated to securing the compensation you deserve.