What’s the Difference between a Personal Injury Lawsuit, and a Personal Injury Claim? Part III

Understanding why an injury claim may become a lawsuit can help you evaluate the potential benefits, risks, timing, and next steps involved in pursuing compensation.

In parts one and two of this series, we began the discussion of what a personal injury claim is, what a personal injury lawsuit consists of, and how the former may lead to the latter. This installment continues that conversation by discussing some of the reasons claimants may choose to pursue a lawsuit.

We will also generally discuss timing, costs, practical considerations, and the potential advantages and disadvantages of resolving a personal injury claim versus moving forward with litigation. Every case is different, and the right path can depend heavily on the facts, available evidence, extent of the injuries, and the parties involved.

Quick Take: Does Filing a Lawsuit Mean Your Case Will Go to Trial?

No. Filing a personal injury lawsuit does not automatically mean that a case will go to trial. Litigation can provide a formal process for preserving legal rights, gathering evidence, and continuing negotiations, and many cases are resolved before a trial takes place.

Reasons Claimants Pursue Lawsuits

There are many reasons a person who initially files a personal injury claim may eventually decide to pursue a personal injury lawsuit. Sometimes negotiations reach an impasse. In other situations, important questions about liability or available evidence cannot be adequately addressed without using the formal legal process.

Some common reasons claimants pursue lawsuits include:

The insurer denies responsibility or makes an unreasonably low offer

An insurance company may dispute whether its insured was responsible for an accident or may offer an amount that the injured person believes does not adequately account for the losses involved.

Liability is disputed and important evidence is needed

Formal litigation may provide tools for seeking evidence that is not voluntarily provided during the claims process, including documents, records, and other information relevant to determining what happened.

Multiple potentially responsible parties are involved

Accidents involving several individuals, businesses, insurers, or other potentially responsible parties can create complicated questions about liability and the available sources of compensation.

Filing a lawsuit does not automatically mean that the parties will be going to trial. It can, however, be an important procedural step that protects a claimant’s rights and allows the case to move through the formal legal process.

Costs, Timing, and What Happens to Many Personal Injury Cases

Understanding the general progression of a personal injury matter can help claimants develop realistic expectations. Although every case follows its own timeline, there are several important considerations when comparing settlement negotiations with litigation.

Many Cases Are Resolved Before Trial

Filing a lawsuit and going to trial are not the same thing. A lawsuit may continue through investigation, discovery, negotiation, mediation, or other stages before the parties reach a resolution.

Settlement values can also vary dramatically. Relatively minor cases may involve much smaller amounts, while cases involving catastrophic injuries, permanent disability, significant medical expenses, or substantial lost income may involve considerably higher potential damages.

There is no universal settlement amount for a personal injury claim. The value of a particular case can depend on the severity of the injuries, available evidence, insurance coverage, liability issues, medical expenses, lost income, and numerous other circumstances.

Timing Can Affect a Personal Injury Case

Evidence can become more difficult to obtain as time passes. Witness memories may fade, physical evidence may disappear, and certain legal deadlines may limit the amount of time available to pursue a claim. Prompt action can help preserve important information and protect legal rights.

Claim Settlement or Lawsuit? Explore the Practical Differences

Scroll horizontally through the interactive comparison below to explore some of the practical considerations that may arise when deciding whether to accept a settlement offer or continue pursuing a case through litigation.

Speed

Resolving a claim through settlement may be faster than continuing through the full litigation process.

Evidence

A lawsuit may provide formal legal procedures for obtaining information and evidence relevant to the case.

Control

Settlement negotiations can give parties greater control over the timing and specific terms of an agreed resolution.

Risk

Litigation can involve uncertainty because the ultimate outcome may depend on decisions made by a judge or jury.

Finality

Accepting a settlement can have important legal consequences, and claimants should understand what rights they may be giving up before agreeing to resolve a case.

Practical Pros and Cons: Claim vs. Lawsuit

Whether to accept a settlement offer or continue pursuing litigation is a significant decision. Below are several general considerations that may arise when comparing the two paths.

Potential Advantages of Resolving a Claim

A settlement may resolve the matter faster than full litigation.
Some settlements may allow the parties to agree to private terms.
The parties may have greater control over the timing and structure of a resolution.
Settlement may involve less stress and fewer court appearances than a case that proceeds to trial.

Potential Disadvantages of Settling Too Early

An early offer may not fully account for the damages involved in a case.
Future medical needs or other long-term consequences may not yet be fully known.
Once a settlement is finalized, an injured person may give up the ability to pursue additional recovery for the same claim in many circumstances.

Potential Advantages of Filing a Lawsuit

Filing a lawsuit before an applicable legal deadline may help preserve the right to continue pursuing the claim.
Formal discovery procedures may provide additional opportunities to seek evidence.
Litigation can continue negotiations when the parties cannot reach a voluntary resolution through the ordinary claims process.

Potential Disadvantages of Litigation

Litigation can take significant time and resources.
Court proceedings and filings may become part of the public record.
A case may involve additional proceedings, including the possibility of appeals.
Trial outcomes are uncertain, and there is no guarantee that a judge or jury will award the amount a claimant believes is appropriate.

How Do You Decide Which Path Is Right?

Deciding whether to accept a settlement or move forward with litigation depends on the specific circumstances of the case. The strength of the available evidence, the extent of the injuries, the potential long-term effects, the amount of insurance coverage available, and the claimant’s comfort with time and risk can all be important considerations.

An experienced personal injury attorney can review the facts of a particular situation and help explain the potential advantages and disadvantages of the available options. There is no one-size-fits-all answer, and a strategy that makes sense in one case may not be appropriate in another.

An Important Reminder About Deadlines

Legal deadlines can affect whether a personal injury lawsuit may proceed. Because the applicable deadline and other legal requirements can depend on the facts of a case, it can be important to seek legal guidance before waiting too long to evaluate your options.

Frequently Asked Questions About Personal Injury Claims and Lawsuits

Does filing a lawsuit mean my personal injury case will go to trial?

No. Filing a lawsuit begins the formal litigation process, but many cases continue through negotiation and other stages before a trial becomes necessary.

Why would someone file a lawsuit after making an insurance claim?

A lawsuit may be considered when liability is disputed, negotiations do not produce an acceptable resolution, important evidence is unavailable voluntarily, or other legal issues complicate the claim.

Can I change my mind after accepting a settlement?

Settlement agreements can have significant legal consequences. In many circumstances, finalizing a settlement limits the ability to pursue additional recovery for the same claim.

Can a lawsuit help me obtain additional evidence?

Litigation may provide formal procedures for requesting documents, information, and other evidence relevant to the issues in dispute.

Should I speak with an attorney before accepting a settlement offer?

Speaking with an experienced personal injury attorney can help you better understand the potential value of your claim, the available evidence, and the legal consequences of accepting or rejecting an offer.

Questions About Your Personal Injury Claim or Lawsuit?

The decision to accept a settlement or pursue a personal injury lawsuit can involve important questions about evidence, timing, risk, and potential compensation. The team at Patel Law, PC can help you better understand your options and the legal process moving forward.

Our respected Champaign personal injury attorneys have helped clients assess their circumstances and navigate personal injury claims and lawsuits. Contact Patel Law, PC to discuss your situation and learn more about your potential next steps.