You have several options available to you when it comes to resolving your personal injury claim following an accident. You can work with the insurance company in coming to a settlement, or you can proceed to trial, whether it be jury or judge trial.
However, once you get an auto settlement, do you need to be concerned about it being reduced or modified? We have asked attorney, Alaina Sullivan, about what you should do. Here is what she had to say:
The Point of Settlement
The entire point behind a settlement being made is it avoids the need to go to court. You avoid the cost and stress of litigation by coming to an agreed figure behind closed doors with the other side. Once the settlement is worked out, you sign a release stating you will not then pursue litigation once the agreement is made and signed.
Therefore, you would not be taking it to court where a judge or jury can then modify and reduce the amount. Your agreement is protected.
The Beauty of Settlement
One of the appealing aspects of settling with the other side is your agreement can be anything you want it to be, and it can be as creative as necessary. When you present your case to a jury, this group of individuals is bound by the law. Their ability to be creative is extremely limited, and they are limited even more so by the instructions that are given to the jury before deliberations.
These instructions are negotiated not only by the two opposing sides and their counsel but also by the judge, following the rule of law. Therefore, you may be able to come to an agreement with the other side that you would not otherwise have been able to receive had you taken your chance at court.
Settlement Negotiations Are Protected
Keep in mind, however, that any settlement negotiations or conversations made in anticipation of settlement are protected. You may have discussed a specific amount when going back and forth with the insurance company, but those discussions are considered confidential.
If you went through mediation with the insurance company, that fact is almost always explicitly stated. Therefore, if you and the insurance company were throwing a number back and forth for a settlement figure, you cannot later bring up this figure in court should settlement fall through and you proceed to court.
You cannot say “Hey, we agreed on ‘x’ as a settlement” and expect the jury to go for that amount. That is the risk you take when choosing to proceed to litigation in lieu of settlement. It is all a gamble, after all.
Settlement is Final
All of the above being said, your settlement is yours to keep. Once you have come to an agreement with the insurance company and put your mutual agreement into writing, sign it and finalize the document, it cannot be modified by a third party, and that includes a court or jury.
The amount you receive in settlement cannot be appealed, and it is assumed that any settlement document executed between you and the insurance company will release the other party from further legal claims. Should you choose to sue an additional party in a related law suit regarding the same car accident, any settlement agreement that you come to with another party will not be touched in this separate legal claim.
Therefore, if three cars were involved in one car accident and you come to a settlement agreement outside of court with one driver but proceeded to litigation via jury trial with the other driver, your settlement agreement will not be an issue and will not be touched by the jury in the separate claim.
The two may be “related” per se, but in the eyes of the court, they are completely separate, even if the two cases are consolidated with only one settling. The parties remain separate and so should any resolutions outside of the courtroom.
Contact an Attorney Today
If you have been involved in a car accident and are contemplating settling outside of court and have questions about your rights, it is always recommended you contact an attorney today to discuss your case if you do not currently have a lawyer or have any questions.
A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company. To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
