Each year, a considerable number of people in the U.S. experience injuries that require medical attention. In 2021, approximately 62 million Americans sought medical care for nonfatal preventable injuries. These injuries can involve a wide range of incidents, including slip and fall accidents, car crashes, workplace accidents, dog bites, and more. 

Many times, the injured party will initiate a personal injury claim, seeking compensation for the harm they have suffered. While a personal injury claim can be resolved out-of-court or can go to trial there are pros and cons to each option. Seeking legal counsel from an experienced personal injury lawyer like accident attorney Stephen Babcock can help injured parties navigate their decision. In this article, we will take a closer look at the advantages and drawbacks of settling a claim out-of-court to help you make the right decision for your personal injury claim.

Settling Out of Court

In the vast majority of cases, personal injury claims are settled out of court as statistics show that almost 95% of pending lawsuits reach a settlement. This also means that only one in 20 personal injury cases end up at trial to be determined before a judge or jury. Below we will look at the pros and cons of this option.

Pros

• Faster resolution:  Settling a personal injury claim out-of-court is likely to lead to a faster resolution of the matter than taking it to court. Personal injury trials are often lengthy affairs that can last several months or even years.  In the meantime, the injured party may be facing mounting medical bills, loss of income and other financial challenges that would make swift resolution and settlement advantageous.

• Confidentiality: A major advantage for parties when settling a claim is the confidentiality offered to them. It is common practice for settlement agreements to include confidentiality clauses or non-disclosure agreements (NDAs) which require the terms and details of the settlement to remain confidential. Maintaining confidentiality in such cases is especially beneficial for individuals or businesses who wish to stay out of the spotlight and shield their reputations. Settling out of court ensures there is no public scrutiny and the matter can be resolved in private.

• Greater certainty and control: The settlement process offers the possibility of negotiation regarding the terms of the settlement and the amount offered. This gives the injured party a greater degree of certainty over the outcome of their case and control over the terms of the resolution. Instead, taking the case to court means relinquishing control of their case and risking the chance of walking away with nothing.

• Lower Costs: The costs involved in settling a personal injury claim are usually lower than taking the case to court. Without the need for filing fees, expert witnesses, depositions, and the costs of legal representation, the overall financial burden can be significantly lower when settling a personal injury claim.

Cons

• Lack of accountability: In many cases, personal injury claimants seek justice not only for themselves but for others. By highlighting the wrongdoing or negligent acts of the other party, there is a greater chance that the same mistakes will not be repeated. However, due to their confidential nature, out-of-court settlements remain hidden from public view and the defendants do not have to account for their actions. This route also precludes the possibility of punitive damages being awarded to the injured party. For many claimants, who seek more than just compensation,  this can be a severe drawback of settling their case.

• Potential lower settlement: While a settlement offers greater assurance of receiving a payout, there is also the chance that the amount offered is lower than the true value of the claim or the amount that would have been awarded in court. While opting to settle a claim can provide an element of certainty it does not guarantee that the full extent of the claimant’s injuries or losses will be recognized, resulting in a potentially unfair and lower settlement figure. This may require balancing the risk of receiving nothing at trial with the certainty of receiving something, albeit a potentially lower amount through a settlement.

• Insurance tactics: Most personal injury settlements are against insurance companies that handle claims on behalf of individuals or businesses that may be liable for the injuries. Adept in handling such claims, insurance companies have a vested interest in minimizing payouts and often employ bad faith tactics such as delays in responding or pressuring the claimant to agree to a lower offer, which sees the claimant settling for less than they deserve. 

By carefully considering these pros and cons you can make an informed decision regarding whether to settle your personal injury claim or pursue legal action.