After you have been injured in an automobile accident, you will want to determine if your case is worth bringing a lawsuit or should you settle. If you were not at fault and the insurance company is not negotiating with you in good faith to compensate you for your pain and suffering and medical expenses, then it may be necessary to file a lawsuit. The purpose of the lawsuit is to seek compensation for the damages you have incurred as a result of the accident.
First, your attorney will communicating with and negotiating with an insurance company representative or a defense lawyer. It is usually the insurance company adjuster who will be making the initial offers of settlement prior to any litigation. This occurs because most likely the person at fault will have either homeowner’s insurance, automobile insurance or a personal umbrella policy that covers injuries from accidents.
When dealing with your claim, your attorney will initially send a demand letter to the opposing party or his/her insurance company prior to instituting any litigation. The letter will outline the facts of your case; specifically setting forth a description of your injuries, details about the accident, and why your attorney believes it is the fault of the insured and a breakdown of the medical expenses incurred with a description of the services provided. It will then set out a settlement amount and a timeline for which the insurance company has to respond to the demand.
The opposing party will then usually respond with a counteroffer, which will be lower than the amount you demanded. The negotiations will continue until there is an agreed-upon settlement amount. If the parties cannot agree upon a settlement amount, then your attorney will have to file a formal lawsuit against the party you believe to be responsible for your injuries. If no settlement is reached and you hve to file a lawsuit, you must keep in mind that litigation is very lengthy and can take a long time.
Your medical expenses and lost wages (if any) will constitute the majority of the settlement amount your attorney will ask the opposing party for during negotiations. If there was any intentional acts, such as driving under the influence, then your attorney may seek money damages in the form of punitive damages, which are designed to punish the party at fault.
If the other party accepts your settlement offer, then your dispute will be resolved and the case is over. This is the best possible outcome, because a trial is not an easy or fast process. That is why it may be in your best interest to settle; however this will be something that you and your attorney will discuss before any settlement offers are accepted or extended.
If the opposing party responds with a counteroffer, you may have a difficult decision. If the counteroffer is less than your original offer but still within a range that can cover your medical expenses and lost wages, you may want to accept the settlement offer. However, if the offer is drastically lower and will barely cover your medical expenses, then you will have to discuss with your attorney the pros and cons of the prospect of going to trial.
This article is not legal advice and is not intended as legal advice. This article is intended to provide only general, non-specific legal information. This article is not intended to cover all the issues related to the topic discussed. The specific facts that apply to your matter may make the outcome different than would be anticipated by you. You should consult with an attorney familiar with the issues and the laws of your jurisdiction. This article does not create any attorney-client relationship.