When Should You Settle a Personal Injury Case?

You should settle a personal injury case when you reach maximum medical improvement and know your case value based on the defendant’s liability and policy limits. Personal injury victims negotiate a settlement offer with the insurance adjuster in exchange for signing a release of liability. Most personal injury lawsuits end in an out-of-court agreement to avoid the time, expenses, and litigation risks of a jury trial. A settlement should cover your medical bills, lost wages, future care costs, pain and suffering, and other economic damages caused by the accident.

“Most personal injury cases settle before trial,” says Charla Aldous, a plaintiff’s personal injury attorney in Dallas. But, she adds, “It usually takes the threat of an upcoming trial to get a fair settlement.”

Benefits of Settling a Personal Injury Claim

Do most personal injury cases end in settlements? “Certainty,” says Aldous. “Taking a case to a jury is always a gamble.  And even if you win, and win big, appeals can last years.”

“There are risks to trial,” agrees Kevin Parker, who handles personal injury appeals at The Lanier Law Firm in Houston. “You don’t know what the jury is going to think. Even with a good case, there’s motivation to settle because you’ll get your compensation, your payment, sooner.”

With a settlement, Parker says, payment usually comes within 30 days, but with a verdict, you have to wait for the judge to sign a judgment.

“And the lawyers file motions between the verdict and the judgment, and if there’s an appeal, that could be two years easy,” he says. “If you actually collect your money after the appeal runs out, you’re going to collect more because you accrued interest. But it does take longer.”

Should I Take the First Offer?

An initial accident settlement offer often marks the start of the settlement process, not the end. The insurance company may expect some negotiation before agreeing to a final amount.

Another reason not to rush: an insurer may offer relatively early, sometimes before you have completed medical treatment or fully understand the extent of your injuries. Some injuries require ongoing treatment, and the cost of that care may not be clear when the first offer arrives. Accepting a settlement too soon could leave you responsible for medical expenses and other losses that become apparent later.

Once you accept a settlement and sign a release, you generally cannot go back and ask for more money if your condition worsens or additional expenses arise. Accident victims should therefore consider whether an offer accounts for their current and future losses before accepting it.

The goal is not simply to accept an offer and move on. The goal is to understand what the claim is worth and decide whether the proposed settlement fairly compensates for the accident-related losses. An attorney can evaluate the offer, negotiate with the insurer, and advise you about whether accepting it would help you pursue maximum compensation.

What To Consider Before Accepting a Settlement Offer

Several factors matter when deciding whether to settle a personal injury claim.

Obviously, you need a fair offer, but Parker lists others: “Is the client, the plaintiff, credible? Do they have a good demeanor? Will the jury like them?” You must also consider the defendant’s attorney’s expertise.

Defendant’s Perspective

From the defendant’s perspective, reaching a personal injury settlement means avoiding the risk of a large verdict and, especially for a well-known company, possibly harmful publicity.

Plaintiff’s Perspective

For the injured person, a settlement brings finality, says Robert Hilliard, a plaintiff’s personal injury lawyer in Corpus Christi.

“You put an unusually tragic and emotional event behind you. If there are children or future medical expenses, you’ve guaranteed a future: education, medical care, certainty, and income. Plus, no one is making the decision but your client. A jury knows and does the right thing. But often, clients want to be able to make the decision.”

Defendants May Misjudge the Value a Jury Places on an Injury

Hilliard says defendants sometimes fail to realize how much a jury would value an injury.

He describes a case in which he represented a paraplegic athlete who was burned by hot water at a hotel that had a defective hot water system:

The plaintiff’s feet had third-degree burns, which he couldn’t feel because of the paraplegia, but which kept him from competing in his sport for two years while he received skin grafts. The defendant offered only $50,000, saying the plaintiff had not lost income and had no actual physical pain, given his paralysis.

Hilliard took it to trial, and the jury awarded $500,000. Hilliard relates, “One juror told me, ‘I play softball. Softball keeps me sane. It’s what I love to do. I get it.'”

Going To Court for a Personal Injury Lawsuit

That said, says Aldous, “Some cases just need to be tried.” She gives an example: “Many times, parents who are suing for the wrongful death of a child are adamant about trying the case to a jury verdict.”

Sometimes, the plaintiff just wants to have their day in court. “For some people, that’s important,” says Parker. “Just the idea of having your adversaries — who you believe were negligent and wronged you — having them have to come to court and answer for that.”

He also points out that settlements are compromises: “Everyone reduces the value a little bit because the risk goes away. You’re coming down, and they’re coming up.”

A verdict can also send a message, adds Aldous, “To help prevent the same tragedy from happening to someone else.”

One other factor to keep in mind when deciding whether to settle is the emotional cost of going to trial.

“It’s a painful process to sit and give your deposition for hours and have your character impugned, have everything dug up about you that they can find, sit through a mediation where people talk about your case like it’s just nothing but a dollar figure, then sit through a trial, go to the courtroom and listen to people talk about you for three days, and the jury is looking at you,” says Parker.

“Particularly if it’s a very painful incident, sometimes a plaintiff might want to just avoid that and take a settlement instead of going through it.”

Find Experienced Legal Help

Reach out to an experienced personal injury attorney for legal advice if you or a loved one is a personal injury victim. An experienced attorney will guide you through settlement negotiations and help you secure fair compensation. Many attorneys provide free consultations to learn about your case.