Maria Cavalluzzi Personal Injury Law Blog on Lawyers.com

Statistics show that personal injury plaintiffs who enter into settlement agreements are more likely to end up with more money in their pockets than those who pursue a personal injury case all the way through trial. Approximately 60% of the time, the plaintiff would have been better off had they accepted the last offer of the defendant rather than proceeding to trial. There are various reasons for this, including the increase in attorney fees and costs when a matter proceeds all the way through trial, as well as the possibility that the plaintiff has overvalued his or her case. 

However, the question remains, at what stage of the process should you enter into serious negotiations in order to maximize your settlement proceeds?  Or, when is trial the only possible avenue to take in order for the plaintiff to receive full and fair compensation?

We can take a typical auto accident case.  When liability is clear, it is very likely an insurance adjuster will make an offer very early on in order to try and settle the matter for less than its true value.  This is especially true when the party making a claim is not represented by an attorney.  The adjuster will see the lack of representation as an opportunity to make a “lowball” offer, in the hopes that it will be accepted.  At the very least, consult with an attorney before accepting such an offer.  Most auto accident attorneys in Los Angeles will offer free consultations for any personal injury or auto accident case.  You do not want to jump on an early offer only to find out later that your injuries persist and you have not received full and fair compensation.

When, as in most cases, you are dealing with an insurance company adjuster, that adjuster will have to be convinced that your case has value.  A good personal injury and auto accident attorney will thoroughly investigate your case, gather all the appropriate medical evidence and loss of earnings documentation and obtain expert consultations when called for, which will be used to persuade the insurance adjuster to pay the appropriate settlement amount.  The attorney will try and provide the adjuster with much of this information prior to initiating litigation. The attorney should also understand all legal issues and possible strengths and weaknesses of the plaintiff’s case. Then there will be negotiations between the plaintiff’s attorney and the adjuster in an effort to settle the matter prior to litigation.

In many cases, the plaintiff will have to begin the process of litigation before a full and fair settlement can be reached. Once a lawsuit is filed, attorneys for both sides will begin the vigorous process of discovery and continued investigation and consultation with experts.  Once both sides have had the opportunity to fully evaluate the case, entering into mediation is an excellent tool for obtaining a fair settlement. The process of mediation results in most personal injury and auto accident cases settling short of trial, sparing the parties the expense, stress, anxiety and risk of proceeding all the way through a jury trial.

When issues of liability and damages remain hotly contested, and the parties reach an impasse, jury trial becomes the only way to finally resolve the matter.   In those 40% of cases where the plaintiff ends up with a better result after trial, it is most likely that the plaintiff gave the defense every opportunity to fully and fairly evaluate the case and pay the compensation to which plaintiff was entitled, and the defendant was simply unreasonable.

In conclusion, a personal injury or auto accident case should not settle until it is “ripe” for settlement.  Plaintiff’s settlement proceeds are maximized when plaintiff’s Los Angeles auto accident attorney is fully prepared to present evidence and legal arguments to the defendant and/or the insurance adjuster that will convince that adjuster the called for settlement amount.