Many unexpected things usually happen before you hear the ‘exciting news’ of the tens or hundreds of millions of dollars that juries award to victims of personal injuries. Many parties usually sign a non-disclosure agreement to keep their settlements private. Also, personal injury settlements are not as high as some verdicts, making them somewhat dull.
However, you still deserve insight into what you might likely get if you or your loved ones are involved in a personal injury case. This piece explains what you need to know when weighing settlement offers.
Settlements: The Typical Outcomes in Personal Injury Claims
It is common to hear that parties settle criminal cases without a trial. Statistics show that over 94 percent of criminal cases do not go through a trial; they are resolved via a plea bargain. Shockingly, the statistics for civil issues are similar.
Though estimates differ, about 95 percent of civil cases get to settlements at a certain point. It is possible to settle at any level of the matter—before filing a lawsuit to after its conclusion (when the victorious side offers to pay to deter the losing party from appealing).
How Personal Injury Settlement Works
The function does not change no matter the case level when parties settle a personal injury case. A settlement is a system where the plaintiff accepts a given sum in exchange for filing their claim in court.
Settlement negotiations are tricky for both sides. The suing party (plaintiff) risks accepting less than they might get from a court order. The defendant or the accused offers to pay an amount to avoid trial expenses. However, the judgment could swing either way.
For many plaintiffs, a guaranteed settlement amount is better than an uncertain verdict, even if the judgment sum might be higher. The famous saying that “a bird in the hand is worth two in the bush” fits perfectly in this scenario.
Personal Injury Lawsuit Results
Most personal injury lawsuits usually end in settlements. The United States Department of Justice states that only four to five percent of personal injury cases proceed to trial.
Also, a 2005 study by the Bureau of Justice Statistics discovered the following:
• Plaintiffs had a 50 percent success rate in all the personal injury cases that proceeded to verdict
• They had the highest success rate in auto accident cases, where they recorded 61 percent
• Plaintiffs had a 19 percent success rate in medical malpractice trials
Hence, a victim considering a settlement offer has a 100 percent guarantee of getting the amount the defendant offers. If you reject it, statistics show you have automatically reduced your chances to 50-50. It means you might end up with more or nothing if the case goes to trial.
However, there is a third possible outcome apart from reaching a verdict or settlement. Juries can dismiss cases at any time for different reasons.
The Amount of Compensation in a Typical Personal Injury Case
The fact of each incident will determine the compensation. Typically, the amount of damages caused will give a clue into the amount of payment a defendant will pay. Hence, it is challenging to estimate a typical sum of compensation even for issues of the same form.
A vehicular crash causing a broken arm will differ from one involving a severed hand. Still, the 2005 study gave some insights into personal injury compensation amounts (at least, as of then):
• The median award was $31,000 for the issues analyzed
• Medical malpractice cases had a $679,000 average award
• The median award for premises liability cases was $90,000
• Half of all victims received $24,000 or below
• The average award for auto accident matters was $16,000
• The median award for product liability cases was $748,000
Factors Affecting the Result in Personal Injury Cases
Both sides must consider some crucial factors before deciding whether to reach a settlement or proceed to trial in a personal injury matter. These factors include the following:
1. The seriousness of the injuries
2. The effect of the injuries on the victim—how they affect the plaintiff’s daily living
3. Amount and treatment period
4. The psychological and emotional damage from the hurt
5. Litigation cost
6. Other costs beyond litigation—newsworthiness, for instance. What is the publicity around the case’s effect on the defendant’s future reputation?
7. The certainty of liability—the obviousness of the blame of the defendant
8. The duration litigation could take for a verdict
Some states have a cap limiting the amount a jury can award if a case reaches a verdict. Some limitations are only on parts of an award, like pain and suffering damages. In some cases, state laws reduce compensation to a fraction of what the jury initially awarded.
If such laws are operational in your state, hire an experienced and reputable attorney who understands them to help you get the best out of your case.
Modes and Duration of Payment of Personal Injury Settlements
On average, it takes less than 12 months for an insurance firm to settle an agreement they reach with a plaintiff. However, some got their compensation in less than two months.
If you hire a lawyer, the insurance company will send your settlement to them.
The Place of Lawyers in a Personal Injury Settlement Amount
You need a lawyer to fast-track the process and ensure the other party does not outsmart you. “A personal injury lawyer will help advocate for your rights in the case. They will ensure the defendant or their insurance company does not violate your fundamental rights during the case,” says attorney Walter Clark of Walter Clark Legal Group.
Typically, an attorney helps you negotiate favorable settlement offers. Remember that they are experienced in such cases. So, they know the loopholes to explore to ensure you get fair compensation. There are many technicalities you will not understand.
They can also file or threaten a personal injury lawsuit. If the initial negotiation fails to work, a lawyer will consider the merits of your case and file a lawsuit. The ultimate aim is to ensure the defendant or their representative does not cheat you.
Finally, they also understand the timelines for prosecuting personal injury issues. There is no gainsaying that you cannot do all these without being overwhelmed. Hence, lawyers are non-negotiable in a personal injury case.