At some point in every claim, a person must decide whether to settle their claim or file a lawsuit. Which option is best depends on the facts of each claim and the individuals needs and characteristics of each person.

The advantages of settling a claim prior to filing a lawsuit include:

Speedy resolution

The court system can be unbelievably slow. It is common for lawsuits to talce years to resolve. This is often though no fault of the parties, but the court’s calendar. So, if time is of the essence, do not count on a quiclr resolution if you file a lawsuit.

Certainty

No matter how confident you are that the law is on your side and that you have valued the claim correctly, the opposing party will take a different view. Ultimately, if you go to trial, a jury of 12 strangers will make the determination on the value of your claim. And for you to win, 10 of the 12 jurors must agree. In today’s world, getting 10 of 12 people to agree on anything can be almost impossible! So while you may win, you are likely not to get what you’re demanding in financial compensation. On the other hand, the insurance company is unlikely to get what they’re asking for too.

 Lower legal costs

Litigation is expensive. It is the person who is bringing the lawsuit that bears the burden of proof. In most personal injury cases, to prove your case will require expert witnesses. Expert witnesses often charge thousands of dollars and sometimes tens of thousands of dollars for their opinions and testimony.  In addition, litigation costs will include depositions mediation and other hidden costs. In my opinion, the likelihood of winning and securing a’verdict that is—significantly greater than the insurance companies last offer must substantially outweight the litigation costs in order to file a lawsuit.  Again, each case must be considered on its own unique set of facts.   

Privacy

Filing a lawsuit will open a person up to losing most of their privacy rights. The insurance company will gain access to all of your medical, employment and past wage records. In addition, many courts are now allowing insurance companies access to your social media posts such as your Facebook account. While this may seem outrageous, the law allows discovery of all information “that is reasonably calculated to lead to admissible evidence.