If you were injured due to someone else’s negligence, you may be able to resolve your case in one of two ways: a settlement or a trial. These two outcomes have different meanings, processes, pros, and cons. Here is what you need to know about these two different options for resolving a personal injury lawsuit.
What Is a Settlement?
A settlement is a confidential agreement between two or more parties in which a party with a valid legal claim against another agrees not to sue the responsible party in exchange for something of value, such as a certain amount of money.
For many personal injury cases, a settlement agreement is reached between an accident victim and the insurance company that provides liability or other applicable insurance for the person who caused the accident.
When you agree to a settlement in a personal injury case, the following terms apply:
- You forfeit any future right to seek compensation from the other party involved in the settlement.
- The at-fault party usually does not admit fault for any wrongdoing.
- You don’t go to court.
- You receive money.
What Is a Trial?
A trial is a formal, structured legal proceeding in which parties present evidence and testimony to a judge or jury. The party bringing the case (the plaintiff) has the burden of proving their case. If they cannot prove all the applicable legal elements, the judge or jury cannot rule in their favor.
If they can, the judge or jury can award them a certain amount of damages against the at-fault party.
Key Differences
Some of the central differences between these two options include the following:
- Timing: A settlement may provide funds to the accident victim within a few months, but a trial may take years to complete.
- Compensation: Settlements may result in lower amounts than trials because the defendant doesn’t want to risk a higher amount of compensation being awarded in a trial. Additionally, juries can award punitive damages in cases involving egregious misconduct.
- Decision maker: In a settlement, the accident victim can decide whether or not to accept the amount of money offered. In a trial, the judge or jury is the decision maker, so if you choose to go to trial, you are giving someone else the power to decide the final outcome of your case.
- Confidentiality: Settlements are generally confidential, but trials occur in open forums that are available to the public. There is generally no public admission of fault in settlement agreements.
- Risk level: Settlements can result in guaranteed compensation. While trials may have a higher potential for reward, accident victims could also risk receiving no compensation.
Because what is best will vary from one case to the next and depend on factors such as how much compensation you need to cover your losses, whether collecting a judgment would likely prove difficult, and the resolution you want the most, you should consult with an experienced personal injury attorney for tailored legal advice.
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If you were involved in an accident caused by someone else’s negligence, contact Dulin McQuinn Young for legal advice and representation.