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If you’ve been injured and are considering filing a personal injury case, a crucial thing for you to understand the distinction between settlement and trial. At some point, you will be called upon to decide how you want to resolve your personal injury case, and each has its own advantages and considerations.
In this article, our New Jersey personal injury attorneys explore the key differences between settlement and trial in personal injury cases, so you can make an informed decision about whether to file a personal injury lawsuit or to settle out of court.
What Is a Personal Injury Settlement?
Simply put, a personal injury settlement is a legally binding agreement between you (the plaintiff) and the person who injured you (the defendant). In reality, it is the result of extensive negotiations between your lawyer and an insurance company about how the injury impacted your life and how you should be compensated.
The settlement process in a personal injury case typically begins after the injured party files a lawsuit against the insurance company. This involves:
- Sending a demand letter outlining the injuries, damages, and requested compensation.
- Filing a complaint against the at fault party
- Conducting discovery to determine what happened and the extent of the injuries.
- An evaluation of medical expenses, lost wages, and other damages.
- Negotiations between the injured party’s attorney and the defendant’s insurance company.
- Reaching a settlement agreement that is legally binding once both parties agree.
- Finalization with the injured party receiving compensation and waiving the right to further litigation.
This process allows both parties to resolve the case without going to trial. A fair settlement is usually a result of extensive investigation, analysis, and negotiations. Most cases end in a settlement.
What Is a Personal Injury Trial?
A trial is a formal legal proceeding that happens in a courtroom. Here’s an overview of the litigation process in personal injury cases:
- Pre-Trial Proceedings: The pre-trial phase involves various steps, such as filing a complaint, conducting discovery (gathering evidence), and engaging in settlement negotiations. At this point, either a settlement agreement is signed, or the case goes to trial.
- Presentation of Evidence: At this point in the legal process, both parties present arguments, evidence, and witness testimonies to support their positions. The plaintiff bears the burden of proving the defendant’s liability and the extent of their damages.
- Jury Deliberation: In many personal injury trials, a jury evaluates the evidence presented and determines liability and damages. However, in some cases, the trial may be conducted before a judge without a jury.
Most personal injury claims do not go to trial–in fact, they only do so about ten percent of the time. Trials with high attorney fees can be expensive, and just so you know–we do not charge you unless we win.
Settlement vs. Trial: Key Differences and Considerations
Understanding the distinctions between settlement and trial is essential. Here are some key differences:
- Resolution process: Settlement is a negotiation process where parties work toward a mutually acceptable agreement. In contrast, a trial involves presenting arguments and evidence to a judge or jury, who then makes a decision.
- Control over outcomes: Settlement provides more control over the final outcome, as both parties have the opportunity to negotiate and reach a resolution. In a trial, the decision is ultimately in the hands of the judge or jury.
- Finality of decisions: Settlement generally results in a final resolution, avoiding the possibility of appeals. In contrast, trial decisions may be subject to appeal, leading to additional time, expenses, and uncertainties.
Choosing between settlement and trial can significantly impact both the timeline and outcome of a personal injury case. While settlements often resolve faster and give both parties more control, trials may result in prolonged litigation and uncertain outcomes, with the possibility of appeals extending the process further.
Let’s break down the advantages and disadvantages of settlements further.
Disadvantages/Advantages of Settlement in Personal Injury Cases
When deciding whether to settle a personal injury claim, you must have a clear picture of what you’re giving up versus what you could gain. Settlement can offer speed, control, and privacy but may also lead to compromises in compensation and other factors. Here’s a more detailed breakdown:
Advantages of Settlement
Opting for a settlement can be an appealing choice for parties looking to resolve disputes efficiently and amicably. These offer:
- Control over the outcome, avoiding a jury trial.
- Less stressful than facing a courtroom battle.
- Flexibility in negotiations, allowing both parties to agree on terms like medical bills and lost wages without going to trial.
- Avoids the unpredictability of a jury verdict and the legal system’s extended timeline.
Choosing a settlement can provide a more tailored, efficient, and less stressful path to resolving disputes outside the courtroom.
Disadvantages of Settlement
While settlements offer many benefits, they also come with certain limitations that may affect the outcome and satisfaction of both parties involved. Some include:
- No acknowledgment of fault or liability by the defendant, as settlements don’t always admit responsibility.
- No appeal process, meaning the settlement amount is final, regardless of the true extent of damages like medical expenses and other expenses.
By carefully weighing these factors with your personal injury lawyer, you can make informed decisions about the best path forward for your case.
Additional Factors to Consider in Choosing Settlement or Trial
When deciding whether to pursue settlement or trial, several factors should be considered:
- Strength of the case: Assess the strength of your case, including the evidence, witness testimonies, and legal arguments. Discuss this with an experienced attorney who can provide a realistic evaluation.
- Potential compensation: Consider the potential compensation offered through settlement negotiations compared to what you might receive through a trial. Evaluate the risks and benefits of each option.
- Time constraints: Take into account your personal circumstances, including any time constraints or financial needs that may influence your decision.
- Personal preferences: Consider your own preferences and comfort level with the negotiation process, as well as the potential stress and uncertainty associated with a trial.
By carefully weighing these factors with the guidance of a trusted attorney, individuals can make a well-informed decision on whether settling or proceeding to trial best serves their interests and needs.
If You’ve Been Injured, You Don’t Have to Do This Alone
Understanding the difference between settlement and trial in personal injury cases is essential for making informed decisions about your claim. Most personal injury cases are settled out of court. However, you should never feel like you’re being forced into a settlement instead of going to trial without understanding all the pros and cons. Contact us today for a free consultation with an experienced personal injury attorney.