Estimates show that around 95% of all personal injury claims are settled without going to court. For those who have been injured through no fault of their own, understanding the settlement process is crucial for ensuring that you receive fair compensation for your injuries.
At Nelson Personal Injury, LLC, our St. Cloud injury attorneys are dedicated to guiding you through the challenging time that follows an accident. Our team is here to break down the steps in negotiating a personal injury settlement, helping you better understand the essential aspects of the process and feel more confident in your pursuit of justice.
Statistics Surrounding Personal Injury Claims in Court
Personal injury claims are typically settled before reaching a trial. According to the U.S. Department of Justice, only 4% to 5% of these cases proceed to trial.
Different studies show different results, but a study by the Bureau of Justice Statistics revealed that, over the course of 20 years:
- In personal injury cases that went to trial, plaintiffs had a success rate of around 50%.
- The highest success rate was in auto accident cases, with plaintiffs winning 61% of the time.
- In contrast, plaintiffs succeeded in only 19% of medical malpractice trials.
There is a question of what “winning” means, as sometimes even if a plaintiff obtains a favorable verdict, it is less than what the previous offer was. Or a plaintiff could win on fault or liability, but lose on damages. For those contemplating a settlement offer, it’s important to consider that accepting the offer guarantees you the proposed amount. It is in a sense, the least risky of your options. If you reject it and go to trial, your risk increases substantially—you could win more than the settlement or lose, and end up with nothing.
Initial Steps in the Settlement Process
The first step in negotiating a personal injury settlement is filing the initial claim. This involves gathering all necessary evidence and documentation to support your case.
This can include medical records, police reports, witness statements, and accident scene photographs. Once you have compiled your evidence, you will likely submit a demand package to the insurance company to try to settle your claim. If you are unable to resolve your case at this stage, you will then have to start a lawsuit and file the matter with the court. Preparing and submitting a demand sets the foundation for your entire settlement process. It will allow the insurance company to evaluate the claim an make an offer. At that point, you can either decide to continue negotiations or start the lawsuit process.
Evaluating the Claim
Understanding the value of your claim is essential for successful negotiations. Here’s how it’s done:
Assessing Fault and Damages
Assessing fault is an important part of evaluating a claim. If the fault is clear, then the only question will be damages. However, in many cases, fault is not always clear, and the amount of fault the insurance company places on the injured party may affect the valuation of the damages. Minnesota operates under a modified comparative negligence system. Meaning you have to prove that another party was 50% or more at fault for causing the injury. If you cannot prove this, you are unable to recover any of your damages. If the injured party shares 50% or less in fault, then their damages are reduced by the corresponding fault percentage.
Assessing damages is a critical part of evaluating your claim. This involves calculating both economic and non-economic damages. Economic damages include medical expenses, lost wages, and other financial losses directly related to your injury.
Non-economic damages, on the other hand, cover pain and suffering, emotional distress, and other intangible impacts of the accident. Accurate assessment ensures that you seek adequate compensation.
Determining the Claim’s Value
Once fault and damages are assessed, it’s time to determine the overall value of your claim. This may involves referencing past cases and settlement amounts for similar injuries. An injury lawyer near St. Cloud can provide valuable insights and help you evaluate a realistic settlement range. Understanding the potential value of your claim empowers you during negotiations and helps set expectations.
Negotiation Process
The negotiation process typically begins with sending a demand letter. This letter outlines the details of your injury, the extent of your damages, and the compensation you are seeking. It is crucial to present your case effectively in this letter, providing clear and compelling evidence to support your claims. A demand letter from a St. Cloud personal injury lawyer can set the tone for the negotiations and demonstrate the seriousness of your case.
After reviewing your demand letter, the insurance company will respond with either an acceptance, counteroffer, or denial. If the initial offer is too low, don’t be discouraged. This is a common tactic used by insurance companies to minimize payouts. At this stage, having a St. Cloud personal injury lawyer on your side can significantly strengthen your position. Our attorneys will advocate for fair compensation and challenge any unjust offers.
Counteroffers and Further Negotiations
When faced with a low initial offer, it’s essential to counter effectively. Your counteroffer should address the weaknesses in the insurance company’s offer and reiterate the strengths of your case. Strategies such as highlighting additional evidence or emphasizing emotional distress can help negotiate higher settlements. Consistent communication and persistence are key elements in this phase.
Mediation and settlement conferences become invaluable tools if direct negotiations reach a stalemate. Mediation involves a neutral third-party mediator who facilitates discussions between you and the insurance company, aiming to reach an amicable resolution. On the other hand, settlement conferences are formal meetings where both parties present their cases before a judge or mediator. These approaches often lead to a fair settlement without needing a trial.
Finalizing the Settlement
Finalizing the settlement involves two critical steps.
Agreeing on Terms
Once you and the insurance company agree on a settlement amount, it’s critical to understand the terms of the settlement agreement. This document outlines the compensation you will receive, and any conditions attached. Reviewing the terms carefully ensures you fully comprehend the implications and prevents future disputes.
Signing the Settlement Agreement
Signing the settlement agreement is the next step. This formalizes the settlement and signifies that both parties agree to the terms. It’s important to note that once you sign the agreement, you typically waive your right to pursue further legal action related to the injury.
Therefore, ensure that the settlement adequately covers all your damages and future needs. Injury lawyers near St. Cloud can help you determine whether the settlement is fair or demand more.
Receiving and Handling Settlement Funds
After finalizing the settlement, the funds will be placed in your personal injury lawyer’s client trust account until it is distributed. This process involves managing the distribution of the settlement amount, paying legal fees, and addressing any outstanding medical bills and subrogation claims (health insurance company’s right to get paid back). Before disbursement, you should receive and sign a full accounting, in writing, of how the settlement funds will be disbursed. Proper handling ensures that you receive the maximum benefit from your settlement and that all obligations are met.
If a Settlement Cannot Be Reached
In some cases, negotiations may fail, and a settlement cannot be reached. When this happens, proceeding to a lawsuit, and possibly a trial is the next step. Both parties present their evidence during the trial, and a judge or jury determines the outcome.
While trials can be lengthy and uncertain, they sometimes result in higher compensation than settlements. If you find yourself in this situation, having the best accident lawyer in St. Cloud representing your interests is crucial.
Contact Our St. Cloud Injury Attorneys Today
Our St. Cloud personal injury lawyers at Nelson Personal Injury, LLC are here to guide you through this process, ensuring you receive the compensation you deserve. If you were injured in an accident, contact us to schedule a free consultation. Our experienced attorneys are ready to fight for your fair compensation.
