Pros & Cons of Settling a Personal Injury Case Out of Court

Deciding whether to settle a personal injury case out of court or take it to trial is a major decision. It depends on the nature of the case, as well as personal preferences. However, most personal injury cases settle out of court before reaching trial.

In an “out of court” settlement, the defendant or defendant’s insurance company offers a settlement to the plaintiff in exchange for a release of liability. There are advantages and disadvantages of settling a case before trial. An experienced personal injury attorney can evaluate your case to determine the option with the best outcome.

The pros

It saves Time: Settling a case before trial is quicker. Often, trials begin a year after the initial claim is filed. The whole process may take up to three years or even longer, depending on the complexity of the case and the jurisdiction.

It reduces stress: Settling a personal injury case out of court is less stressful and burdensome. An offer is negotiated, the defendant makes the settlement, and the case is resolved. On the other hand, a trial can be stressful for all the parties involved. It requires several court appearances, as well as being subjected to examination and cross-examination. In addition, a cross-examiner attempts to undermine a person’s credibility in public.

It protects privacy: In a settlement, the details are kept confidential, unlike in a trial, where all the case details become public record.

It is less expensive: A trial can be very costly. The attorney fees are much higher when a case goes to trial than when it is settled out of court.  Besides high attorney fees, trial costs can involve paying expert witnesses, court charges, administrative fees, travel expenses, etc.

It is predictable: An experienced lawyer can predict the outcome of a settlement better than jury decisions.

There is no record of guilt: Unlike a trial, an out of court settlement does not require the defendant to admit his or her wrongdoing. On the other hand, in a trial the defendant has to plead “guilty” or “not guilty.”

The cons

The compensation is less: The monetary award offered in a settlement may be much lesser than in a court trial. However, the value of the settlement must be weighed against the risk of going to court as well as the increased costs.

It does not cover punitive damages: Oftentimes, out of court settlements do not cover punitive damages, such as emotional suffering.