If you suffer injuries or any other kind of damage because of someone else, filing a personal injury claim gives you the means to seek compensation by holding the other party liable. Depending on the specifics of your case, this might come in the form of a verdict or a settlement. Given that both come with their share of pros and cons, understanding the difference between verdicts and settlements is important. In addition, you should also consider seeking advice from a personal injury lawyer.
How Settlements Work
Settlements are fairly common in personal injury cases, and data collated by Forbes indicates that only 4% to 5% of personal injury claims go to trial. You may view a settlement as a legally binding agreement between two or more parties, where each agrees to resolve the case after agreeing upon a compensation amount. Often, while there is no denying a defendant’s fault, the settlement process focuses on the compensation the complainant must receive.
Reaching a settlement typically involves extensive negotiation between both parties, and may include lawyers and insurance companies. This is because the latter are often responsible for paying the compensation amount.
You may expect offers and counter-offers during the negotiation process. For example, if you suffer serious injuries in a car accident, your lawyer may file a claim for $300,000. The defendant’s lawyer may then make a counter-offer of $75,000. After more to and from, both parties eventually agree to resolve the case and reach a settlement for a compensation amount of $250,000.
Getting all the details of a settlement on paper is the next step, and the agreement typically includes information like:
- The compensation amount
- The party responsible for paying the compensation
- Details of how the compensation needs to be paid (lump sum or partial payments)
- Confidentiality or non-disclosure clauses
How to Get a Settlement?
If you look at the verdict vs. settlement comparison closely, you’ll see it’s possible to get the compensation you seek without going to court. When you file a personal injury claim, there are two ways to arrive at a settlement. In both, having a personal injury lawyer by your side increases the odds of a favorable outcome.
Out of Court
The first way to settle a personal injury case is to negotiate with the at-fault party before initiating legal proceedings. If the defendant’s insurance company sees merit in your case, it might choose to settle the case out of court to reduce its legal costs. For this to happen, your lawyer needs to present sufficiently persuasive evidence that makes the opposing party feel it does not stand a chance of winning in court.
During Trial
If a personal injury claim ends up in court, both parties may agree to settle at any time during the proceedings, before the verdict. When both parties arrive at a settlement, the court prepares a Stipulation of Settlement agreement. Then, the judge uses the Stipulation agreement as a basis to issue a judgment.
How Verdicts Work
The biggest difference between verdicts and settlements is that the former involve taking your case to court. Then, the verdict would be the legal judgment that follows the trial, which can be a bench trial or a jury trial. In both scenarios, it’s ideal that you get a personal injury attorney to represent your case.
Most personal injury lawsuits in New York are bench trials, where both parties present their case to a judge who then passes a verdict without the requirement of a jury. However, both parties have the right to request a jury trial by filing a jury demand notice and paying a fee. The trial gets underway after the jury selection is complete.
Civil trials in New York usually have six jurors, and while they don’t need to have unanimous verdicts, they need five of the six jurors to have the same point of view. The jury delivers its verdict to the court after arriving at a decision, and it typically includes the compensation amount the defendant needs to pay. Then, the judge relies on the jury’s decision and issues the official judgment.
Whether your personal injury lawsuit goes through a bench trial or a jury trial, it follows a similar process.
- Both parties present evidence and arguments.
- The judge/jury determines if the defendant is responsible for your injuries/damages.
- The judge/jury pins liability.
- The judge/jury evaluates your damages and arrives at a suitable compensation amount.
Can You File an Appeal?
An important aspect of the answer to, “What’s the difference between verdicts and settlements?” surrounds your ability to file an appeal if you’re not satisfied with the outcome. If you accept a settlement offer, filing an appeal is not an option because the agreement states that both parties agree to the compensation amount and that you don’t have the right to re-file or reopen your claim.
If your case goes to trial and results in a verdict you don’t find satisfactory, you may file an appeal as long as you have not signed an agreement that prohibits you from doing so. However, if you file an appeal, keep in mind that it can turn out to be a long-drawn affair.
Should You Settle or Go to Trial?
The verdict vs. settlement comparison typically tilts in favor of the latter because of the time and expenses that both parties can save. However, there are instances when going to court might be the better alternative.
Opting for a settlement might work well if:
- You want to arrive at an outcome that meets your specific requirements.
- You’re unsure of the outcome if your case goes to court.
- You wish to resolve the matter as quickly as possible.
- You want to keep the outcome private.
Taking your personal injury case to trial might be the better option if:
- You cannot arrive at a settlement with the opposing party.
- You’re not satisfied with the settlement offer.
- You want the judgment to be a part of public records.
- You wish to set a precedent for similar cases in the future.
Pros of Settlements
- The process can be less stressful than taking your case to court.
- Once you arrive at a settlement amount, there’s a guarantee that you’ll receive the money.
- You can keep the details of the settlement private.
Cons of Settlements
- You cannot appeal a settlement after it is final.
- Without legal assistance by your side, you might not get the compensation you deserve.
Pros of Court Verdicts
- You might get a higher compensation amount if your case finds favor with the jury.
- You get to hold the opposing party accountable publicly.
- You have the right to file an appeal if you’re unhappy with the result.
Cons of Settlements
- The outcome can be unpredictable.
- The process typically takes more time than a settlement.
- Details of the case will become a part of public records.
Conclusion
Now that you know what the difference between a verdict and settlement is, take time to understand your specific situation and arrive at a decision accordingly. For example, if you’re looking for a quick resolution, opting for settlement might be the right move. However, if you have confidence in your case and don’t mind going through a lengthy trial to get a higher compensation, you may consider filing a case in court.
Ideally, you should discuss the merits of your case with an experienced lawyer who specializes in personal injury litigation. Depending on whether you opt for a settlement or a trial, you can also get your lawyer to represent you in both scenarios.