How Many Personal Injury Cases Settle Out of Court?

Being injured is never fun, but it’s even worse when it happens as a direct result of someone else’s carelessness. Worst of all, though, is being saddled with expensive medical bills or property repairs as a result. In such cases, filing a personal injury claim might be the ticket to getting you the compensation you deserve.

Over the years, I’ve found that one of the most common questions plaintiffs pursuing lawsuits ask is whether or not they should accept a settlement. Unfortunately, that’s a question only you can answer. Before you start looking for a personal injury lawyer in Wilkes-Barre, it’s a good idea to learn more about settlements, how common they are, and their various advantages and disadvantages.

What Does It Mean to Settle?

Often, when people think about personal injury lawsuits cases, they think of them in being simple win-lose scenarios. You sue a person or organization and try to prove that their negligence or misconduct led to your injury, and they defend themselves. If you win, you’re entitled to compensation. If you lose, you get zip. Right?

Wrong. Aside from winning or losing, there exists a third option: settlement. A settlement is an agreement made between both parties involved either before or during the trial, wherein the plaintiff agrees to cease pursuing legal action in exchange for the defendant paying an amount that is smaller than the one they are being sued for. This allows both parties to avoid a potential loss, as well as the public visibility and expense of an ongoing trial.

How Common Are Settlements?

Settlements are an extremely common outcome for lawsuits. In fact, it’s estimated that roughly 95% of all personal injury cases are settled out of court, with only 5% going all the way through trial. While that number has been disputed, the fact remains that settlements account for a vast majority of lawsuit resolutions in the U.S.

The reason for this is twofold. First, settlements are often viewed as favorable to businesses that want to avoid negative publicity. Generally, the amount of money lost to a settlement is considered a small price to pay when compared to the amount potentially lost if the public starts viewing their brand in a negative light. Second, less reputable law firms known as “settlement mills” have found it profitable to avoid long legal battles in favor of accepting the first settlement they are offered, allowing them to close a case as soon as possible and then quickly move on to another client.

What Are the Pros & Cons?

The positive benefits of accepting a settlement are readily apparent. For the defendant, avoiding negative PR is a major advantage. For the plaintiff, they avoid the stress and expense of going to trial and also receive some compensation, whereas a failed lawsuit would leave them with empty pockets.

That said, there are disadvantages to accepting a settlement. The first is that the amount offered is usually far lower than the amount being sought. Sometimes it’s not even enough to cover the losses the plaintiff has experienced. Many people feel pressure to accept the first settlement they’re offered, but in reality, taking the time to negotiate can usually yield positive results. Whether taking a settlement is worthwhile or not is a decision only you can make, but it’s important to not sell yourself short either way.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes