Can I Reopen My Case After Signing a Settlement Release?

In most cases, you cannot reopen a personal injury case after signing a settlement release. You can reopen your case only in very limited situations, such as fraud. Before signing a personal injury settlement agreement, make sure you understand your rights and what you give up by accepting a settlement offer. Review any settlements with your attorney before signing.

Signing a settlement too soon can mean you lose out on the full compensation you deserve. Talk to a personal injury lawyer for legal advice before accepting a settlement.

What Is a Personal Injury Settlement Agreement?

Most personal injury cases never go to trial, where a jury would determine the injury award. Most personal injury cases settle between the parties. In a settlement agreement, the parties go back and forth negotiating over settlement terms. The injury victim tries to negotiate for more money, and the defendant tries to lower the settlement amount.

When the parties come to a mutual agreement, the plaintiff signs a release to drop their legal claims. As a condition of the settlement, the defendant includes language that says the settlement is final and the injury victim cannot reopen the case or claim additional damages. A negotiated settlement is a contract, and changing the release of liability after signing is very difficult.

Why Sign a Settlement Release?

The personal injury victim and the defendant have strong reasons to settle the personal injury lawsuit instead of going to trial. Personal injury trials are stressful, time-consuming, and costly for all parties. A settlement avoids the stress, costs, and time of a trial so the injury victim can move on after a traumatic accident.

A settlement also provides a known outcome instead of the unpredictability of a jury trial. A jury may decide the injury victim does not have a case or award very little in damages. A negotiated settlement ensures the injury victim receives a certain amount of money to cover medical bills and other expenses.

Many car accident and other personal injury claims involve insurance, and the insurance company plays a role in negotiating the settlement. Drivers carry auto insurance policies that provide coverage for injury claims. In these situations, the insurance company typically pays most of the settlement amount. Insurance adjusters try to lower the claim and will not pay more than the liability coverage limits.

When Can You Reopen a Personal Injury Case?

Courts strictly enforce negotiated settlement agreements and will not reopen a claim, even if your injuries are more serious than you understood at the time. Limited situations where a judge may reopen a case include:

• The defendant engaged in fraud or misrepresentation
• The plaintiff was forced, tricked, or coerced into signing the contract
• Mutual mistakes between the parties

Fraud and Misrepresentation

If the at-fault party misrepresented material facts and you later find evidence that the defendant committed fraud, you can petition the court to reopen the case. Material facts in settlement negotiations can include lying about insurance coverage limits, falsifying medical records, or destroying negligence records.

Duress and Coercion

Coercion, duress, or threats can provide grounds to reopen a case. A party acting under threat of harm or duress does not have the consent to agree to a contract. However, the party trying to reopen the case must provide evidence that undue pressure caused them to sign the agreement.

New Evidence Is Not Enough To Reopen Your Case

New evidence of additional losses is not enough to reopen a case. For example, you sign a settlement agreement after a car accident because you did not think your injuries were very serious.

Months later, you realize you suffered permanent injuries and require continuing medical treatment and are unable to work. Without showing fraud or coercion, the court generally will not reopen the case for newly discovered evidence because you signed a legally binding contract.

Understand All Your Damages for the Settlement Process

Before negotiating your settlement amount, make sure you understand all your losses. Economic damages have a set value, including lost wages, medical expenses, and property damage. Non-economic damages include pain and suffering, emotional distress, and loss of enjoyment of life. However, compensatory damages include past, continuing, and future costs.

Many personal injury accidents cause long-term damage that determines the case’s total value. Head, neck, and back injuries can have long-term effects, require continuing physical therapy and additional surgeries, and prevent the victim from continuing to work.

Assessing future expenses for permanent injuries is more difficult. Your attorney can use economic and medical experts to calculate the case’s total estimated value, including future expenses. Expert witnesses can use your medical records, employment records, and other evidence to create a life care plan for your future compensatory damages. Future damages may include:

• Future medical care
• Home and vehicle modifications
• Loss of earning capacity
• Residential nursing facilities

After Reaching Maximum Medical Improvement

Maximum medical improvement (MMI) is a term in personal injury cases to indicate when the injury victim’s condition has stabilized and is not expected to improve. Even if you never fully recover from your injuries, you reach MMI when your medical providers no longer expect significant improvements, even with continuing treatment.

Generally, your attorney will not negotiate a settlement until your doctor determines you have reached MMI. After that point, your lawyer and the insurance company will have a better idea of your case’s value.

Settling a Claim Before the Statute of Limitations

You cannot wait forever to come to a settlement agreement. The statute of limitations sets a time limit for filing a claim. If you wait until after the applicable statute of limitations expires, a defendant may have a defense to a lawsuit, although the parties may still voluntarily settle.

The statute of limitations varies by state and runs from one year to six years, with most states having a two-year statute of limitations for general personal injury claims.

Talk to an Attorney About Maximizing Your Settlement

Even if your lawsuit continues for months or longer, it will likely settle before a jury trial. During discovery, your attorney and the at-fault driver’s insurance company will gather information to determine the strength of each side’s claims.

If you have a strong case and significant financial damages, the insurance company may be more likely to settle. If your case is weak, the insurance company will offer a lower settlement.

Your attorney can explain the settlement negotiation process, your rights, and the best way to approach your case to get the maximum compensation. Talk to a personal injury attorney about negotiation strategies and whether you can reopen your case if you already signed a settlement release.