When faced with a personal injury case, individuals are often confronted with the decision of whether to settle or take their claims to court. This pivotal choice involves a thorough understanding of the negotiation process, the role of insurance companies, factors influencing settlement amounts, and the potential costs and benefits associated with both options. At Howard Abrams Law, not only do we possess that thorough understanding, but we’re here to help you understand it as well.
The Opening Review
The negotiation process for personal injury cases can be categorized into two main phases: dealing with adjusters and engaging an attorney in litigation. When dealing with adjusters, we start by opening up the claim and sharing initial injury information, but fully understand that these numbers may not reflect the final settlement. The purpose of this is to find out as much information as possible from the adjuster regarding the policy that is covering the loss, which can help provide some indicators of the settlement offer they can provide. Essentially, this sets a baseline of where we can expect negotiations to start. Once a client finishes injury treatment, the attorney and the adjusters can begin negotiations, and if they can agree on a settlement amount, then the attorney will recommend it to their client, who has the final say if the case settles outside of court.
The Dance of Reaching A Settlement Amount
If a settlement cannot be reached with the adjuster, the case is filed and any negotiations will typically be handled by two attorneys, one for the Plaintiff and one for the Defendant. There are numerous factors that can influence proposed settlement amounts from either side, such as medical bills, which include past and potential future expenses, pain and suffering, damages, loss of quality of life, and wage losses, which are the main factors, but there are other categories of damages that can be involved in personal injury cases as well. Somewhere along the way, it was decided that the medical bills multiplied by three was a good tactic to use for a preferred settlement, but there is no legal basis behind it. In fact, Howard Abrams Law does not use this tactic, as it can lead the defense attorney to think he is dealing with someone who does not understand the ins and outs of the case. Further, insurance companies have recently started using software programs to evaluate medical bills, which can lead to reduced settlement offers due to the “robotic computation” as opposed to human understanding, making negotiations even more difficult.
Failing to Reach a Settlement
The most common reason a case fails to settle ultimately comes down to the two sides being unable to agree on an amount for the settlement. Sometimes, it’s a matter of a stubborn client who believes they are entitled to more than the insurance company wants to pay, and sometimes it’s the insurance company who is not offering a reasonable settlement. In some instances, the severity of injuries suffered may drive individuals to pursue a court decision, regardless of the amount offered by the insurance company. Regardless of how the process plays out, or what the attorney is suggesting, all final decisions about whether or not to accept the settlement amount being offered comes from the client.
Alternative Options
Just because two parties are unable to reach a settlement, it does not mean they automatically have to go to court. While settlement is the most common resolution, there are secondary options such as the Alternative Dispute Resolution, which involves settling outside the jury system. These mediation alternatives typically involve a retired judge presiding over the case and using their expertise to offer a definitive ruling if the case is in arbitration, or getting both sides to a settlement amount through mediation. This process provides a more controlled environment, removing the unknown aspect of a jury decision, which no one can ever definitely predict. Specifically in Illinois State Courts, a jury decision involves 12 people coming to a unanimous decision on not only which way the case goes, but how much money is being awarded. Due to the uncertainty surrounding a jury’s decision and their difficulty in reaching a consensus, Alternative Dispute Resolution can be more appealing to both parties, as it incorporates a “judge’s ruling” into the process, creating a more efficient and cost-effective resolution than entering court. This trend has seen a steady rise in popularity over the last few years as the court systems continue to take years to conduct jury trials.
Entering Court – Duration & Costs
If two sides fail to settle and decide to enter court, it is almost certain that the resolution timeline then gets extended by two or three years. Sometimes, this lengthy timeline alone can influence a plaintiff’s decision to settle, and other times it is a combination of the timeline and the added fees associated with going to court. It is possible that mediation may expedite the process somewhat, but the best alternative to waiting two to three years is to have two parties who are willing to negotiate and can come to a settlement agreement. At Howard Abrams Law, while we do not always settle our cases, we almost always recommend listening to the other side if they are willing to negotiate, because the court process can be long and tedious, and there are no shortcuts in litigation.
Client Involvement
As we have discussed before, clients play a crucial role in the negotiation process by keeping their attorney informed, especially with all medical records and expenses from possible injuries, but their involvement carries over into court as well. While the bulk of the action falls on the attorney, a client’s role can be influential in determining the outcome of a case in court, as client testimonies and credibility can make or break a jury’s decision.
The Payoff Pitch
It’s no secret that settling a case and taking it to court are two very different options for clients and their attorneys to consider, and involves careful review of the various factors that influence a case’s outcome, but that’s what Howard Abrams Law is here for, to help guide you through this process. We make sure each client’s case is handled individually, and while settlements are more common, understanding the negotiation process, alternatives to court, and potential costs and benefits is essential for making an informed decision for each case in the complex world of personal injury cases.