Recently, during one of my free consultations with a new prospective client, he asked me a question, “what is the difference between a settlement and a lawsuit?”. I love when I get questions like this because it lets me explain one of the most important important aspects of a personal injury case.
If you have been injured in an accident, seeking compensation may be at the forefront of your mind. Two options for pursuing compensation are a settlement or a lawsuit. While these two options may seem similar, there are important differences to consider before making a decision.
A settlement is a negotiated agreement between the injured party and the negligent party, or their insurance company, to pay a certain amount of money to the injured party. In exchange, the injured party releases their legal claim. Settlements can be reached at any point during the legal process, even before or after filing a lawsuit.
The benefits of a settlement include:
Less expensive: Settling a case is typically less expensive than going to trial because there are fewer legal fees and costs involved.
More control: The injured party has more control over the outcome of the case because they can negotiate the terms of the settlement.
Faster resolution: A settlement can be reached more quickly than going to trial, which can take months or even years.
A lawsuit is a legal proceeding in which the injured party files a complaint with the court against the responsible party for damages. The responsible party must then respond to the complaint, and the case proceeds to trial where a judge or jury decides the outcome.
The benefits of a lawsuit include:
Accountability of the negligent party: Filing a lawsuit can hold the responsible party accountable for their actions and prevent similar accidents from happening in the future. For many individuals that were injured, an apology or accountability of the wrongdoing party is equally important, if not more important than getting monetary compensation.
Potential for higher payout: Going to trial may result in a higher compensation amount than settling out of court, depending on the specific details of the case.
More investigation: A lawsuit allows for a more thorough investigation of the case, which can result in uncovering additional evidence that may not have been discovered otherwise, thereby strengthening your personal injury case.
The decision to pursue a settlement or a lawsuit depends on your personal preferences, the specific details of your case, and your desired outcome of the case. Always consult an experienced personal injury attorney to help you evaluate the strengths and weaknesses of your case, and advise you on the best course of action. Contact us today at (206) 673-1612 to consult an experienced personal injury attorney to discuss your options and determine the best course of action for your situation.