Differences Between a Settlement and a Verdict in Personal Injury

Personal injury cases generally result in a settlement or verdict. The vast majority of cases end in a settlement after both parties come to an agreement, but it’s important to start your claim knowing that either outcome is possible. What’s the difference between a settlement and a verdict, and what do those differences mean for your case?

At Peake & Fowler, we’re focused on helping accident victims like you demand fair and full compensation. Set up your consultation with our team of Columbia personal injury attorneys by calling 803-788-4370.

How You Reach a Settlement

In a personal injury case, a settlement is an agreement reached between the injured party and the at-fault party or their insurance company outside of court. Settlement negotiations typically occur after the injured party hires an attorney. The attorney conducts an investigation, determines the liable party, and issues a demand letter to the at-fault party and their insurance company. They may also include an overview of their evidence supporting the other party’s negligence.

Negotiations commence, with the at-fault party’s insurance provider responding to the demand letter with their own number. Negotiations may last several rounds before both parties come to an agreement. After they agree on a number, the victim signs a contract waiving their right to sue them for their current injuries and any other injuries resulting from the accident. Any other expenses, including the attorney’s fees, are paid out from the settlement and the victim receives the rest.

How a Verdict is Secured

A verdict generally takes much longer than a settlement. It’s rare for personal injury cases to end up in court at all, but when they do, the process is quite time-consuming. Generally, the process begins when negotiations fail. When both parties are just too far apart on their numbers, the victim has no choice but to file a lawsuit. Both parties prepare their cases, a process which may take months. Your attorney will go through the discovery process, which involves interviewing people, taking written depositions, and requesting evidence from the other party.

Finally, the case goes to court and both sides have a chance to present their case. A judge and jury generally hear the case, although there are trials where only a judge decides the outcome. The jury decides whether or not the at-fault party caused the other party’s injuries. If they decide in the victim’s favor, they also determine how much the other party must pay them.

Factors Affecting How Your Case Goes

Several factors can influence whether a personal injury case is resolved through a settlement or a verdict. These include the strength of the evidence, the extent of the injuries and damages, the willingness of the parties to negotiate, and the availability of insurance coverage.

Much comes down to the other party’s willingness to negotiate. In most cases, insurance companies have a vested interest in not going to court. This means that they will ultimately come to a fair settlement agreement because paying some money is better than having to go to court and possibly end up paying more. However, there are rare cases where the insurance company genuinely refuses to see their client’s role in the accident. In these cases, they often do not negotiate in good faith, and a lawsuit becomes necessary.

Your attorney’s guidance may also affect which way your case goes. For example, if your case is ironclad, going to court with a stubborn insurance company may still yield a positive outcome. It may be frustrating for you, but it’s still likely to go your way. If your evidence is a little bit weaker, it may be in your best interests to settle and avoid risking a total loss in court.

Finally, you also have to consider the role of punitive damages. Punitive damages are only available in a court case, so they are not an option if you settle out of court. Punitive damages are only awarded when an at-fault party’s behavior is so egregious that the court deems it necessary to punish them. If your attorney believes you are entitled to punitive damages, a court case may be the path forward.

Reach Out to Peake & Fowler Today

The sooner you start working with our team of experienced attorneys, the sooner we can start building your case. Schedule your consultation now by calling us at 803-788-4370 or filling out our online contact form.