Your Injury Case Will Probably Settle. Here’s What You Need To Know.
After practicing personal injury law in Colorado Springs for so many years, we have found that every day our clients pose the same top settlement FAQs. And that makes sense because over 90 percent of all personal injury lawsuits end in a settlement before going to court. Here are answers to the top 5 settlement FAQs, to help you understand how your case will likely proceed and conclude.
1. What Is a Personal Injury Settlement?
A personal injury settlement is an agreement wherein the two parties in the lawsuit (the plaintiff, or injury victim, and the defendant, or the person responsible for the injuries) agree that the plaintiff will dismiss the lawsuit in exchange for the defendant paying a specified amount of compensation. In most personal injury cases, particularly in car accident lawsuits, it is the defendant’s insurance company and not the defendant who will pay the settlement.
2. Why Do So Many Injury Cases End In a Settlement?
The primary reason why so many personal injury cases settle before making it to the courtroom is summed up by the Roman historian Livy, who said, “Nothing is so uncertain or unpredictable as the feelings of a crowd.” Even when the parties believe they have a winning case, they take a big risk if they go to trial.
No matter how clear liability may appear, there is simply no such thing as a “slam dunk” personal injury case. Judges and juries can be and are unpredictable. There is always a possibility that a trial will end in a judgment in favor of an injury victim that costs an insurer far more than they could have settled the case for before trial. Similarly, a plaintiff could wind up with nothing after rejecting a seemingly reasonable settlement offer. A settlement eliminates these risks.
Additionally, taking a personal injury lawsuit through a trial is expensive for defendants and their insurance companies. The primary goal of insurance companies is to resolve claims as quickly as possible, with as little payout as possible. Spending tens of thousands or hundreds of thousands of dollars on attorneys and court fees doesn’t exactly square with that objective.
3. What Is A Typical Settlement Amount?
Of all the top settlement FAQs we hear, this is the most common. The unsatisfying answer is “it depends.” Every injury and accident is different. The amount that makes for a fair settlement depends on many factors and the unique facts and circumstances of each case. Given that personal injury claims and lawsuits can involve everything from broken bones that will soon heal to catastrophic and life-altering injuries, a “typical” settlement amount is hard to come by. Speaking with a personal injury attorney with experience in your specific situation is the best way to find out what compensation you might be able to expect.
4. What Does An Injury Victim Give Up When They Settle Their Case?
To put it plainly, when you settle your case, you end your case. When you, the injury victim, agree to a settlement, you typically also agree to dismiss your lawsuit and give up any right to seek further compensation or make any claims arising out of the accident.
Because of this, injury victims, and in particular those injured in car accidents, need to be extremely wary of any settlement offers made by an insurance company. Insurers are in the business of making money, and the less they pay in claims, the more profits they make. Knowing that you might be in dire straits financially as a result of the accident, insurance claims representatives will try to tempt you with offers of quick cash in exchange for you signing away your rights. And because they are looking out for their bottom line, and not yours, odds are that the offer you receive will be in an amount far less than you deserve.
That’s why you should not agree to any settlement with an insurer without first speaking with an experienced personal injury lawyer. Insurance-Research.org has reported that people who hire a personal injury lawyer to negotiate an insurance settlement collect significantly more in compensation on average than do those who negotiate without a lawyer.
5. How Much Of A Settlement Winds Up In My Pocket?
Before you receive the proceeds from your settlement, certain fees and payments are deducted. For instance, when you hired your lawyer, you more than likely signed a contract stating that you would pay your lawyer a specific percentage of the recovery – typically between 25 percent and 33 percent, although the percentage may be higher if they obtain compensation through a trial instead of a settlement.
The attorney will deduct the agreed-upon percentage from the settlement proceeds as their payment in your case. In addition to the fees for their work, your attorney will also subtract any reasonable expenses they incurred pursuing your claim.
In addition, hospitals, doctors, and other healthcare providers who treated you for your injuries, and have not previously received payment for your treatment, will be paid from the settlement proceeds. Rest assured though, your attorney will negotiate the bills from these healthcare providers to increase the amount that you wind up with.
Have A Personal Injury Settlement Question Not Addressed In These Top Settlement FAQs? Call King & Beaty For Answers.
At King & Beaty LLC, we are committed to helping Colorado Springs personal injury victims. We take all of your questions seriously because we know how important your recovery is to you and your family. Call us today or fill out our online form to schedule your free, no-obligation consultation, and gain peace of mind.
