Trial vs. Settlement in Personal Injury Cases in California

28 Aug Trial vs. Settlement in Personal Injury Cases in California

The question of settlement vs. trial is an important one in any personal injury case. Just because many cases eventually settle does not mean you must settle your unique case. Nor does it guarantee that you will even receive an offer to resolve your case through a settlement agreement.

However, deciding to proceed to trial has its own risks. A judge or jury may not view the facts in the same light as you do and may decide you are not eligible for compensation. Alternatively, they may conclude you are entitled to compensation but award you an amount that is too low to address all of your losses.

So the question remains: “Should I settle or go to court?” To reach an answer, you should learn about the benefits and drawbacks each option presents. Then, in consultation with an experienced car accident attorney, you can weigh the potential risks and rewards and make the most appropriate decision for yourself and your needs.

Understanding Your Options: What Is a Settlement?

There are no statistics to show how many personal injury cases result in a settlement vs. trial. According to some estimates, as many as nine out of every ten civil cases, including personal injury lawsuits, will be resolved through a settlement agreement.

You may ask, “What is the usual result of a settlement?” A settlement agreement is nothing more than an arrangement where you agree that you will not pursue your legal rights any further. In return, the other party agrees to pay you an amount of monetary compensation for your injuries.

Like any other contract, a settlement is effective once you and the other side agree to the terms. Once you have accepted the settlement amount, you fulfill your obligations under the agreement by dismissing your legal action. Most every settlement requires you to forgo any further legal action against the other party regarding the incident.

Settlements Can Be Reached at Any Time

It is common for parties to reach a settlement before trial. In fact, you and the person or party who caused your injuries may begin discussing a settlement before you even file your case in court. However, there is nothing that says a settlement must be reached before trial. You and the other party could be in the middle of a trial and agree to settle your case at that time.

Even though a defendant who agrees to a settlement will pay monetary compensation to you, a settlement is often more financially beneficial to the defendant the earlier it is reached. This is because the sooner a settlement is reached, the fewer attorneys’ fees the defendant will incur.

Therefore, while it is possible that you and the defendant in your case could reach a settlement on the eve of trial, it is more likely that settlement negotiations will begin early in your case.

Benefits of Settlements for Plaintiffs and Defendants

The primary benefit that settlements offer to both personal injury plaintiffs and defendants is certainty.

When you and another party reach a settlement, you know precisely how much money you will receive for your injuries and when you will receive it. If the other party fails to live up to their obligations, you have specific legal rights that you can enforce in court.

For defendants, a settlement agreement ensures their financial exposure for injuries. They are able to pay in confidence, knowing that once they have made their settlement payment, they will not face any additional financial liability to you for damages.

Defendants also can plan for the future knowing that there will not be any litigation or court appearances that can interfere with their future plans.

Drawbacks to Settlement Agreements

This is not to say that settlements do not present disadvantages to both plaintiffs and defendants. If you are hurt and you reach a settlement with the defendant, you will not be able to sue the defendant later if the settlement amount turns out to be insufficient in light of your losses.

For instance, suppose that you are involved in a car accident. The other driver’s insurance carrier approaches you and offers to pay you $25,000 to settle your case against their driver.

You accept, believing that this amount adequately addresses your medical bills and the cost of repairing your vehicle. You later learn, however, that your injuries are more extensive than first believed and will require more treatment than the settlement will cover.

You could not pursue the defendant for any additional compensation in this situation. Instead, the settlement agreement would bar you from filing a lawsuit against the defendant and you would need to find another way to address the shortfall.

Settlements are also risky for defendants. Once the defendant has agreed to pay a certain sum, they are obligated to do so. If it turns out that your injuries were not as severe as the defendant thought, the defendant is not able to renegotiate the settlement amount or recover any amount that you did not need.

Why Does a Judge Prefer a Settlement Over a Trial?

Judges and the court system also benefit when the parties are able to reach an out-of-court settlement. Personal injury cases take a considerable amount of time and resources to conduct. Judges often must put in long days overseeing the trial, listening to evidence, and conducting other day-to-day duties.

Settlements do away with the need for a trial and place a minimal burden on the court. In most cases, the court does not even become involved in a case that settles unless one of the parties alleges that the other broke the settlement agreement.

The Amount of Your Settlement Depends on the Facts of Your Case

All personal injury plaintiffs wonder how much they can expect to receive from a settlement. There is no universal answer. The amount you receive through a personal injury settlement will depend on numerous factors unique to your case, such as:

• How serious your injuries are
• How strong the evidence is in establishing the defendant’s liability
• Whether your injuries are supported by objective evidence that shows the financial impact you suffered
• The potential cost of a trial to you and to the defendant

One additional factor that plays into the size of a settlement is how quickly you need compensation. A defendant who does not want to go to trial will typically increase the amount they are willing to settle for the closer the case comes to trial. The longer you can wait, the more sizable your settlement award could be.

The Advantages and Disadvantages of a Trial in California

Although many personal injury cases do settle, you and the other party are not required to reach a settlement. If you or the defendant do not agree to settle your case, then you will only be able to obtain compensation by winning at trial.

At trial, you bear the burden of proving through evidence and testimony that it is more likely true than not that the defendant caused your injuries through an act of negligence.

The risk of loss for both you and the defendant is very real at trial. You and the defendant will each present the evidence you believe supports your position. You both may feel you have a strong and compelling case about why the judge or jury should side with you. But once your cases are presented by your personal injury lawyer, neither of you has any control over how the fact finder will view the evidence and what conclusions they will reach.

For injured plaintiffs, the court may find that you have not established that the defendant acted negligently or that their negligence caused your injuries. The judge or jury might also find that you were partially responsible for the accident and reduce the amount of compensation you receive.

Lastly, the judge or jury may disagree with the amount of damages you claim, especially for non-economic damages like pain and suffering, and may award you less than you are seeking.

For defendants, the primary risk of going to trial is the chance that not only will the factfinder return a verdict in favor of the injured plaintiff, but that the damages awarded will be significantly more than the amount of any settlement offer that was made.

While excessive compensation awards may be overturned on appeal, any compensation award returned at trial will tend to be higher than the amount contemplated in a settlement proposal.

Even if the defendant prevails at trial, they will almost always incur attorneys’ fees. Unlike plaintiffs, whose personal injury attorneys often work on a contingency fee basis, defendants must typically cover the cost of their attorneys whether they win or lose at trial.

Knowing When to Settle and When to Try a Case: What to Consider

If you are hurt in a personal injury accident, there is no way for you to escape all risk. Whether you settle your case or elect to proceed to trial, there will always be a chance that you will not receive all of the compensation you need or might be entitled to.

But knowing whether to settle your case or whether to take it to trial does not have to be a coin flip. With the help of a knowledgeable personal injury trial lawyer, you can review the facts of your case and better understand whether the risks of one option are significantly less than those of the other. You should ask yourself:

• How much evidence is available to prove my case?
• Are my witnesses and evidence persuasive?
• Does the settlement being offered address most of my needs?
• How quickly do I need compensation, and how quickly can my case go to trial?
• Do I believe the defendant is negotiating with me in good faith?

As you discuss these and other relevant considerations with your attorney, it should become clear which path is the most appropriate for you.

Give Careful Thought to How to Handle Your Personal Injury Case

Trials are often thought of as the avenue through which justice is served. Having a factfinder listen to your evidence and the circumstances of your injury and then decide how much compensation you deserve can lead to sizable damages awards that not only address your losses but also speak to condemn the defendant’s negligent conduct.

However, the risks at trial can be significant, especially if you need monetary assistance to address your medical bills and lost wages. While settlements are not without their own risks, they may be more palatable to you than risking your entire recovery on how a judge or jury views your case.

Although your attorney can advise you on the risks and potential rewards of settling your case versus taking your case to trial, the ultimate decision is up to you. While settlements are often the way to go and are agreed to by many personal injury plaintiffs, circumstances may not make this an appropriate resolution for you.

Contact the Law Offices of Steve Gimblin, Your Yuba City Personal Injury Lawyer

The Law Offices of Steve Gimblin provides Yuba City personal injury victims with accurate and helpful advice to protect their rights. Whether a settlement or a trial is in your best interests, we are prepared and qualified and will work for the best outcome for you. Contact us today and ask for a free consultation from one of our personal injury lawyers.