Personal Injury Claims

The Differences Between a Settlement and a Verdict in Personal Injury Cases

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Personal injury cases can be emotionally taxing, and a lot depends on whether they end in a settlement or go to court. Many people are surprised to find out that the majority of personal injury cases never actually see the inside of a courtroom—and that’s where the difference between a settlement and a verdict lies. If you’re pursuing compensation for an injury, it’s important to know the different possible outcomes and which way your case may go.

Looking for help with your personal injury claim in Biloxi? The team at Reeves & Mestayer is here to help. Call us at 228-374-5151 to set up a consultation with our team now.

What is a Settlement?

A settlement occurs when both parties are able to negotiate an agreement that meets both parties’ needs. It’s beneficial in a number of ways. First, it saves both parties the time, money, and stress of court. Both parties sit down with an end goal in mind. Attorneys on both sides make their points and indicate what they are willing to agree to. 

If there’s a big gap between the two, it may take multiple rounds of negotiations to come to an agreement. Once the terms of the agreement have been settled, they are drawn up in a legal document and signed by both involved parties. Generally, the agreement involves the injured party receiving a set sum of money in exchange for waiving their right to sue and dropping any current lawsuit they may not have. They also give up their right to sue the liable party again for the same incident.

The vast majority of cases end in a settlement. You are essentially giving up a smaller chance at a much larger sum of money for a smaller sum. This means you no longer have the risk of walking away from a drawn-out lawsuit with nothing to show for it.

Understanding Verdicts

When a case goes to trial, you’ll receive a verdict. During the trial, both parties have the chance to present their evidence, give witness testimonies, and present their legal arguments. The judge and jury listen to both sides and determine if it is more likely than not that the alleged liable party is at fault for the victim’s injuries. If they decide in favor of the victim, they also decide how much compensation they will receive.

The benefit of a court case is that there is a possibility of getting much more than you would in a settlement. The court may award punitive damages or far more for pain and suffering. But this is a significant risk—it’s also possible that they’ll decide the other party isn’t liable and that you won’t receive any compensation. 

At that point, you’ve lost months of your life and endured significant mental strain for nothing. Additionally, a court case takes much longer than a negotiated settlement. You can plan on months of court preparations and waiting for your court date. Knowing these disadvantages, it makes sense why so many claims end in a settlement.

Factors Influencing Which Way Your Case Goes

What does this mean for your case? Statistically, any given case is more likely to end in a settlement than a court case. Numerous factors affect the outcome of your personal injury claim, including:

  • Strength of your case: The stronger your case is, the more your attorney may be interested in taking it to trial. If it’s a slam dunk, the likelihood of a massive court award may be worth the risk.
  • Risk tolerance: It’s important to understand how much risk you’re willing to accept when it comes to your compensation. For most people, the tradeoff of less compensation for a guaranteed settlement is more desirable than the risk of leaving court with nothing.
  • Insurance: Insurance companies are involved in most personal injury claims, including car accident cases. Their handling of the negotiation process and their willingness to offer a fair settlement often play a big role in the outcome of a case.
  • Ability to handle stress: Taking a case to court is incredibly mentally demanding and stressful. If you’re unable to handle that type of mental load, settling may be in your best interest.
  • Time and expense: For many, the added time and cost of court isn’t worth it. If there’s a lot of money at stake, though, it may make sense for you.

Get the Legal Support You Need with Reeves & Mestayer

When you work with the team at Reeves & Mestayer, know that we always have your best interests in mind. Schedule a consultation with our Biloxi personal injury attorneys now by calling us at 228-374-5151 or contacting us online.