The Difference Between Settlement and Going to Court In Personal Injury Cases
After a serious accident, the legal process can feel like a daunting experience. Most people have seen dramatic courtroom scenes on television, but the reality of a personal injury claim is often much quieter. In fact, approximately 95% of personal injury cases in Wisconsin are settled before they ever reach a jury.
What Is A Settlement?
A settlement is a voluntary agreement between you and the at-fault party or their insurance company. In exchange for a specific sum of money, you agree to drop your legal claims and sign a “release of liability” meaning you cannot ask for more money later for that same injury.
The Benefits of Settling
- Speed and Efficiency: Settlements can often be reached in months rather than years. This allows you to pay off medical bills and move forward with your life sooner.
- Certainty: With a settlement, you know the exact dollar amount you will receive on the settlement check. There is no risk of a “zero verdict” from a jury.
- Privacy: Personal injury settlement negotiations are private. Unlike a court case, the details of your injury and the final payout amount do not become part of the public record.
- Reduced Stress: You avoid the emotional toll of testifying in open court and being cross-examined by the opposing side’s attorneys.
What is a Structured Settlement?
A structured settlement is an agreement where the compensation is paid out through a series of periodic payments over a set period of time, rather than all at once. This is typically funded through an annuity (a financial product provided by an insurance company).
These payments can be tailored to meet your specific needs. For example:
- Monthly Payments: To replace lost wages and cover ongoing living expenses.
- Lump-Sum “Steps”: Larger payments scheduled years down the line to cover a child’s college tuition or a major surgery.
- Lifetime Income: Guaranteed payments that continue for as long as the injured person lives.
When Does a Case Go to Court?
If the insurance company refuses to offer a fair amount that covers your medical expenses, lost wages, and pain and suffering, your attorney may recommend taking the case to trial. In a trial, a judge or a jury will hear the evidence and decide both who is at fault and how much compensation you deserve.
The Trade-offs Of A Trial
- The Potential for a Higher Award: Juries can sometimes be more sympathetic than an insurance adjuster. If your case is strong, a jury might award significantly more than what was offered in a settlement.
- Public Accountability: A trial forces the negligent party to answer for their actions in public. This can be important for victims who want a formal acknowledgment of the harm caused to them.
- The Element of Risk: Trials are inherently unpredictable. Even with a strong case, a jury could rule against you, or they could award a much lower amount than you expected.
- Time and Cost: Court cases are expensive. Expert witness fees, court filings, and travel costs add up. Additionally, even if you win, the other side can appeal the decision, dragging the process out for several more years.
Why Having A Trial-Ready Attorney Matters
Even though most cases settle, the best settlements happen when the insurance company knows your lawyer is prepared and willing to go to trial. If a law firm is known for always settling, insurance companies may “lowball” their offers, knowing they won’t be challenged in court. At Herrling Clark, we prepare every case as if it is going to trial. This aggressive preparation gives us the leverage needed to negotiate from a position of strength during settlement talks.
Contact An Experienced Attorney
Deciding whether to accept a settlement or head to the courtroom is one of the most important decisions an injury victim can make. It requires a careful balance of determining financial need, the strength of your evidence, and your personal comfort with risk. The personal injury attorneys at Herrling Clark Law Firm are here to provide the honest, insightful counsel you need to make that choice with confidence. Contact us today.