Before you settle a personal injury claim, make sure you learn your rights. It’s important to understand how settling could affect you in the future. Although reaching a quick settlement could be tempting, it will probably limit your recourse if you need ongoing medical care or have more bills than expected. Also, you likely have options for moving forward besides settling your personal injury case now.
What Is a Personal Injury Settlement?
In personal injury cases, a settlement is an agreement to give up the legal right to pursue your injury claims, typically in exchange for payment from the insurance company. In other words, you get paid to sign away your right to sue for damages in court.
Sometimes, people agree to settle before filing a lawsuit. This may be called an out-of-court settlement or a prelitigation settlement. The settlement agreement usually states that the accident victim is releasing the responsible driver or company and they are s giving up their right to file a lawsuit to seek damages for the harm they suffered in exchange for an agreed upon amount of money. Sometimes, an accident victim files a lawsuit, and then the victim and the defendants in the lawsuit agree to settle. The settlement agreement usually states that the victim will voluntarily dismiss their lawsuit and will not file any lawsuits related to the accident in the future.
The settlement agreement (sometimes called a “Release”) is the document signed to indicate a mutual desire to settle the case. It is a legally binding document once signed by the accident victim, insurance company, and anyone else settling (such as the person who caused the accident). If needed, the parties to the agreement could ask a judge to enforce it. In other words, taking back your signature on a settlement agreement is difficult. You should take the decision to settle very seriously.
Your Right to Consult an Attorney Before Settling
Everyone has the right to consult with a personal injury attorney before settling their case. Unfortunately, insurance companies often rush accident victims into signing settlement agreements before they realize they should speak with an attorney. One reason for this practice is that some accident victims may have injuries with long-term consequences for their lives. You may need ongoing medical care for years, you may deal with lost income over time because of your injuries, or both. If the insurance company settles with you quickly, you may not have discovered these long-term medical and income issues. You may agree to a settlement that does not reflect the long-term effect of the accident on your life.
In some instances, insurance companies will offer to “pay for your medical bills,” plus add a little extra for pain and suffering. The offer may sound tempting at first, but it usually comes with a catch. The most common “catch” is that the insurance company will limit the amount of medical bills they will pay. Medical treatment can get very costly, especially if specialists and radiology (i.e. MRIs, X-rays, etc.) are needed. The bills go up even higher if surgery is recommended. In short, the insurance company’s offer that seemed generous when made often times fails to cover the victim’s needed healthcare bills.
Without knowing the full extent of your injuries, an early offer for pain and suffering may also be far too small. When an injured party settles quickly before making a full recovery, they are releasing their claims without knowing the full extent of their damages. Will the injuries cause pain for 6 days, 6 weeks, 6 months, or longer? The longer a person suffers physical pain, the higher their damages and the more compensation they deserve. Insurance companies know this, which is why they often try to settle quickly before a person knows the full value of their damages and their claim.
Your Right to Hold Off on Settlement
Your personal injury attorney may advise you that the settlement you’ve been offered is not fair. You may deserve substantially more compensation for your injuries than you’ve been offered. If this is the case, you have the right to turn down the settlement offer and pursue other options. There’s no requirement that you agree to settle for the first amount the insurance company offers.
Instead, you could ask your attorney to negotiate with the insurance company for a better settlement. Alternatively, and on your attorney’s advice, you could file a lawsuit in court to pursue damages. Even if you file a lawsuit, you can still talk settlement with the insurance company at some point in the future. If settlement isn’t in the cards, your attorney can handle the lawsuit and seek to have a jury or judge decide your case and the damages for your injuries.
Our Personal Injury Legal Team Is Here for You
If you’ve been injured in an accident and offered a settlement, you need legal advice about your situation from an experienced personal injury attorney. Our firm represents all kinds of personal injury clients in Texas, including those who have already been offered a settlement by the insurance company. The lawyers at Duke Seth, PLLC can help you learn more about your options during a free consultation. Contact us online or call us at (214) 466-1740 to set up your appointment today.
Q&A With Duke Seth
Q: How much is my case worth?
A: This is one of the most difficult questions lawyers are asked by clients. Ultimately, a case is worth what a judge or jury says its worth. Injured parties have the right to file a lawsuit and take their case to trial, at which time the jury decides the case’s value. Statistically, most cases settle and only a small percentage of claims actually go to trial. Because of this, to assess case value experienced lawyers rely on their own experience in court, they review publications that report on jury decisions, and they lean on their experience in mediations and other settlement negotiations. Factors that impact case value—whether in trial or in settlement negotiations—include the amount of medical bills, the types of injuries, the length of time for recovery, the type of medical care (such as rehab or surgery), and the acts of the responsible party that caused the injuries.