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Should You Settle or File a Lawsuit?

There are so many different paths to take tactically when pursuing a personal injury lawsuit. But, in the end, our lawyers present our clients with one of two choices: settle the case or keep moving forward. In a personal injury case, there are six critical times where the settle or move forward decision is presented. Each one presents its own opportunities and pitfalls. 

6 Settlement Inflection Points

  1. Immediately After the Accident/Malpractice
  2. Invariably, this is the worst time to try to settle a case. Insurance companies are simply not going to offer anything resembling fair value at this stage. There are few absolutes in deciding to settle a claim. But this is one of them. Settling a case shortly after an accident, or incident in the case of medical malpractice claims, is just plain foolish.  You will get pennies on the dollar. 

  3. After Submitting a Demand Package to the Insurance Company
  4. Few malpractice cases settle at this stage. But this is the stage at which most personal injury car accident cases settle. Should you settle your accident case at this point or go to the next step and file a lawsuit? Obviously, it depends on the offer and the facts of the case. 

    But the take-home message we give to our personal injury clients over 90% of the time is that the amount of money awarded by the jury as opposed to offered by the insurance company is going to be higher. How much higher? The gap is likely to be related to the size of the case. The more severe the injury is,  the larger the gap between the settlement offer and the real value of the case.  Our lawyers have obtained settlements that are 40 times the pre-suit settlement without going to trial.  

    Again, we are talking primarily about motor vehicle accident and premises liability cases. In medical malpractice cases, there is rarely any offer even in clearly meritorious lawsuits until the pretrial litigation process ends.  

  5. After Filing a Lawsuit
  6. After a lawsuit is filed, another potential opportunity to settle your case arises. At this point, the insurance company realizes both you and your lawyer are serious about pursuing the claim beyond the settlement stage. Often, a different offer comes after the lawsuit has been initiated.

    Tips for Dealing with These Beasts

    This logic holds even greater force for companies that do not have in-house counsel and instead have to hire outside lawyers. These lawyers are more expensive for the insurance company so, as a consequence, why is outside counsel less likely to initiate settlement talks? Let’s just say that outside attorneys get paid by the hour.

    Obviously, for most personal injury cases, you can hire a lawyer to file your lawsuit and begin the necessary preparations to get your case ready for trial. The downside to this is obvious: attorneys' fees that can cost 40% of your recovery. It is no small consideration. If you are filing a lawsuit in a serious injury case, there is no doubt that you need a lawyer. There are, in Maryland and elsewhere, complexities to filing a lawsuit and marshaling evidence that would be virtually impossible to do without a good deal of experience. It is not just victims: lawyers who try to handle personal injury cases with just a little bit of expertise often screw up their cases beyond repair because they don't understand the technical requirements of what has to be done.

    How many cases settle almost immediately after a lawsuit has been filed?  This depends on how litigation adverse the defendant or insurance company is.  State Farm and Allstate are unlikely to reevaluate a case at this point.  Progressive, GEICO, and Nationwide are more likely to increase their offer just because a lawsuit has been initiated.  

  7. Pre-Trial Conference/Mediation
  8. Before a trial, lawyers and parties are required in Maryland and in most jurisdictions to attend a pretrial. The pretrial conference is typically between a few and several months before trial. It is the first opportunity for everyone to sit down and discuss settlement. In many cases, there are also opportunities after the discovery phase of the lawsuit to have a mediation where both sides sit together and try to reach a settlement. Most personal injury lawsuits -- medical malpractice claims in particular -- settle during or shortly after a pretrial conference or mediation. There is wisdom in settling the case during a medication.  But as I write this, our clients recovered more than $650,000 more in the last two larger cases we settled in the few weeks because they walked away from the mediation.  Sometimes, you have to really show the defendant you are willing to try the case.  Both of these clients were willing to try the case and the result for both was a much larger settlement. 

  9. The Courthouse Steps
  10. jury

    If a case cannot reach a settlement, the final gut check comes on the day of trial and throughout the trial. Our law firm has settled many of our larger cases just before the trial begins or, as is more often the case, in the middle of the trial. Your leverage is highest for settlement when letting the case go to trial. The downside is the risk of a complication at trial and the costs associated with trying the case, most notably the cost of bringing medical doctors to testify.

  11. Post-Verdict
  12. We have settled cases that we have won and cases that we have lost after a verdict, usually because either our lawyers or the defense counsel believes there is a real risk of reversal of the verdict on appeal. In large verdict cases, the Plaintiff sometimes looks for an immediate resolution of the case as opposed to waiting for the case to drag through the appellate process.

If You Need an Experienced Personal Injury Lawyer

Our accident and malpractice lawyers handle personal injury accident and malpractice cases in Maryland but also throughout the country. If you or a loved one has suffered a serious personal injury as the result of the negligence of someone else, call our personal injury lawyers at 800-553-8082 or get a free online consultation.

  • Personal injury settlement agreement form: an example of settlement paperwork ending claim
  • What type of injury do you have?  This is critical in determining the settlement value of your claim.  On this page, we look at almost every type of injuries and how insurance companies, judges, and juries have valued these claims.
  • Taking a look at the value of YOUR personal injury case. How do you figure out what your claim is worth and, in serious cases, how does the cap on noneconomic damages factor into that calculation
  • Get the secrets insurance companies do not want you to know because they do not want you to understand your rights and get the full value you are entitled to receive 

Client Reviews
They quite literally worked as hard as if not harder than the doctors to save our lives. Terry Waldron
Ron helped me find a clear path that ended with my foot healing and a settlement that was much more than I hope for. Aaron Johnson
Hopefully I won't need it again but if I do, I have definitely found my lawyer for life and I would definitely recommend this office to anyone! Bridget Stevens
The last case I referred to them settled for $1.2 million. John Selinger
I am so grateful that I was lucky to pick Miller & Zois. Maggie Lauer
The entire team from the intake Samantha to the lawyer himself (Ron Miller) has been really approachable. Suzette Allen
The case settled and I got a lot more money than I expected. Ron even fought to reduce how much I owed in medical bills so I could get an even larger settlement. Nchedo Idahosa