What is Settlement?
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Understanding Settlement
Most personal injury cases settle before trial. Settlements can occur at any stage of litigation, from pre-filing negotiations to mid-trial. While settlements provide certainty and avoid trial risks, plaintiffs should carefully evaluate offers with their attorney.
Examples
- 1Insurance company offering a lump sum to resolve a claim
- 2Mediated settlement during pre-trial proceedings
- 3Structured settlement with payments over time
Why This Matters in Legal Cases
Over 95% of personal injury cases settle before trial. Understanding settlement dynamics helps set realistic client expectations. Early lowball offers from insurance companies are common—clients need to understand that initial offers rarely reflect full case value. The timing of settlement matters too: settling too early may leave money on the table if the full extent of injuries isn't yet known.
Explaining to Clients
Help clients understand that settlement is a business decision, not an admission of weakness. Explain the trade-offs: guaranteed money now vs. potentially more (or less) at trial. Discuss how attorney fees and case costs affect the net recovery. Never pressure a decision—it's the client's choice, but ensure they're fully informed.
Frequently Asked Questions
How long does it take to settle a personal injury case?
Can I reject a settlement offer?
What happens after I accept a settlement?
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