A personal injury settlement occurs when the person being sued (the defendant, who their insurer or attorney usually represents) agrees to pay the person being sued (the plaintiff) a sum of money in exchange for the plaintiff dropping the lawsuit.
Most personal injury claims are resolved through settlement rather than a jury decision, and many of these instances are resolved before a lawsuit is even filed. Find more about the benefits of settling a personal injury case in this article.
While the monetary worth of a personal injury settlement is a major concern for any claimant, there is no such thing as an average regarding the amount of money you can expect to get in a settlement. Aside from the fact that there are as many distinct personal injury claims as types of accidents, the specifics of the settlement will be determined by the facts and circumstances of each case.
To arrive at a settlement price, both parties must first determine how much they believe the case is worth on their terms. Most of the time, personal injury attorneys and insurance adjusters rely on their practical expertise and older cases.
They research similar cases to see what juries have awarded in the past or the trend in the verdicts before considering any unique facts of the current case before making a decision. If an insurance company is handling the defendant’s case, the firm may also have predefined settlement sums for different sorts of litigation in their database.
Once both parties have reached an agreement on a general estimate of an acceptable settlement amount, they will continue to exchange demand letters and settlement proposals back and forth with one another. As both parties gather information and have a clearer understanding of the likelihood that the plaintiff will win or lose at trial, the amount of an acceptable settlement may rise or fall depending on the facts of the case.
After receiving an accepted offer from the other party, both parties will sign a settlement agreement, and the plaintiff will sign a release waiving all rights to seek a legal remedy for the underlying injury.
Are you looking to learn more about insurance and settlement? Read this blog to find out how to settle a personal injury claim.