What’s the Difference Between a Personal Injury Settlement and a Court Award? 

Technically, there’s no difference between a court judgment and an out-of-court settlement. The judge must approve both a jury’s verdict and an out-of-court settlement. However, as outlined below, some significant differences exist between the two. These differences benefit victim/plaintiffs, which is the main reason ponad 95 proc of civil claims settle out of court.

Although the majority of personal injury cases settle, most don’t settle quickly. The best evidence usually isn’t available until discovery, which occurs somewhat late in the litigation process. So, if a personal injury case settles too early, the best evidence, and therefore maximum compensation, is usually unavailable.

This compensation usually includes money for economic losses, such as medical bills, and noneconomic losses, such as pain and suffering. A knowledgeable and experienced attorney can obtain additional punitive damages in some extreme cases. Furthermore, a third party, such as a shipping company or a commercial alcohol provider, is often financially responsible for these damages.

Koszt

Trials are very expensive. Expert witnesses, like medical experts, often charge more than $500 per hour to testify in court. The victim/plaintiff must also pay the expert witness’ travel and other expenses. This high cost significantly reduces the money victims receive from a court judgment.

In contrast, most consulting experts charge a fraction of that amount.

Trials are also very time-consuming. Most judges are booked for months or even years in advance, so most victims wait a long time for trial dates. As mentioned, most personal injury cases don’t settle quickly. However, cases usually settle before the trial date. The sooner the case ends, the sooner victims receive their checks.

Trials are emotionally costly as well. Legal showdowns make compelling scenes in movies and TV shows. In reality, they put added strain on personal injury victims who’ve already been through a lot. Additionally, if a case ends earlier, victims can stop worrying about the outcome and move on with their lives. 

Civility

In many cases, this benefit of a settlement is more important than the other two.

Unidentified tortfeasor (negligent driver) hit-and-runs are a good example. If a New York personal injury lawyer cannot locate the responsible driver, most victims file PIP (personal injury protection) claims with their own insurance companies. New York’s no-fault insurance law requires motorists to add PIP coverage to their policies.

Most people don’t want to take their insurance companies to court. Fortunately, this move usually isn’t necessary. Insurance companies are eager to keep their paying customers happy in these situations. Therefore, these claims often settle quickly, and on victim-friendly terms.

Technically, these matters don’t “go to court.” Most insurance policies include arbitration clauses. Basically, arbitration is a private trial.

Injured passengers also usually hesitate to file legal claims against negligent drivers. The negligent driver may be the named defendant, but the tortfeasor’s insurance company handles all settlement negotiations. Most likely, the company will raise the tortfeasor’s insurance rates or even cancel coverage.

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No one can predict how a jury will rule or how much compensation a jury may award, no matter how much experience the lawyer has.

Jurors often base their decisions on obscure and seemingly meaningless items, such as how a victim dressed at trial. They often do the same thing when they award compensation.

In contrast, if the parties settle a case out of court, they control every part of that settlement, including the amount of compensation awarded.

In most cases, a personal injury settlement is preferable to a court award. Skontaktuj się z nami for a free consultation. We do not charge upfront legal fees and do not recover a fee until we win.