However, following an accident, financial hardships arise due to medical costs and a possible decline in a victim’s ability to return to work. This is when you should seek the counsel of a competent Texas personal injury attorney. An experienced lawyer can evaluate your case, conduct necessary investigations, and advise you on whether or not to settle your personal injury claim out of court.
Most personal injury claims in the United States are resolved out of court, but every case is unique. Ensure you consult a personal injury attorney in Dallas immediately after any accident.
The Benefits of Settling Out of Court
Out-of-court settlements have at least five benefits:
- First, retaining your privacy is a major pro. When a personal injury lawsuit gets to trial, all court documents related to the case are made available to the public. You might consider settling out of court if you value discretion over the outcome of your case.
- Next, you’ll save time. Going to trial for a personal injury lawsuit might add years to the process. Settlement of your claim may be preferable to litigation if you need quick recompense.
- You’ll avoid added stress by settling. Going to court is a difficult and time-consuming process. Personal injury cases that go to trial may be emotionally draining, while those settled out of court might reduce that strain.
- Fourth, the process of settlement is simpler and more basic. You are assured of a certain sum when you settle your claim. However, this is not the case when going to trial since the outcome of a court case is seldom known ahead of time. You will get that guarantee if you and the other party settle out of court.
Is Settling Out of Court Cost Effective?
In most cases, settling a dispute out of court is more cost-effective than taking legal action. The reduced amount of documentation should lead to lower legal expenses. You may expect a lower bill if your personal injury lawyer doesn’t have to do much work on your case, like gather evidence, locate witnesses, take depositions, etc.
Downsides to Out-of-Court Settlements
While the benefits of settling a personal injury claim are undeniably significant, it’s important to be aware of the possible negatives of settling out of court.
- One, you may not get what you deserve. You may get less money in a settlement than you would have won at trial if you had avoided going to court. This is particularly true in the event of a severe injury and inadequate insurance coverage.
- Insurance adjusters could potentially prolong the settlement process. Although personal injury claims are often settled out of court, an insurance provider may drag its feet in responding to your claim or use other delaying tactics in the hopes that you would accept a lower settlement offer.
- Third, a settlement is final in Texas. If you accept the insurance company’s settlement offer, you will no longer be eligible for further damages. After resolving your case, you cannot reopen it for any reason, regardless of whether existing injuries improve or new damages surface.
- Punitive damages in Texas are unavailable via settlement. Seeking punitive damages in a lawsuit may greatly raise the value of a personal injury claim. Punitive damages may be awarded in Texas for intentional wrongdoing or extreme carelessness.
Before deciding, consider the benefits and drawbacks of going to trial for your personal injury lawsuit. You should see an attorney if you need assistance determining which course of action is best given your circumstances.
Laws on Out-of-Court Settlements in Texas
Texas’s “offer of settlement” rule covers practically all lawsuits that seek monetary damages, with a few exceptions, including class action suits and various lawsuits filed under the Family Code.
Plaintiffs should keep in mind that any party that wrongly rejects a settlement offer may be held responsible for some litigation expenses under the Texas Rule of Civil Procedure. Initially, only a defendant or party against whom a claim for damages is lodged may submit a statement using this rule. A settlement offer might be made to a defendant after the defendant has filed its statement.
If one party rejects a “reasonable” settlement made by the other, the losing party must then cover the other’s legal fees. According to Rule 167, “litigation costs” include monetary awards, expert witness fees, and attorneys’ fees. Litigation expenses begin accruing upon rejection of the settlement offer and end upon execution of the final verdict.
Settlement offers must not be “significantly less favorable” to the offeree than the actual verdict at trial in order to be considered “reasonable” under Rule 167. If the judgment is less than 80% of the offer amount, then the offer made by the defendant to the plaintiff is considered fair. A plaintiff’s settlement offer to a defendant is considered fair if the ultimate judgment is more than 120% of the offer amount.
Call the Rasansky | McKenzie Law For Dallas Personal Injury
Our team at the Rasansky | McKenzie Law has served the Dallas-Fort Worth region for 27 years. Our accident and injury attorneys handled hundreds of personal injury and wrongful death cases during that time.
Through it all, we promise to treat you and your loved ones with the greatest respect and care, regardless of the circumstances surrounding your accident.
We will assist you in keeping track of your injuries and other losses and provide information about your legal choices and representation. To speak with one of our Dallas personal injury lawyers and arrange a free first appointment, please call (214) 651-6100. At this trying time in your life, we will stop at nothing to get complete and fair compensation for you and your loved ones.