When someone is injured because of someone else’s negligence, they may be able to file a personal injury claim to pursue compensation for their losses. While many people think most of these cases end in lawsuits, the fact is that 95% of lawsuits settle before trial.
Through negotiation, parties involved in disputes may be able to resolve their case without continuing toward litigation.
What Is Negotiation?
Negotiation occurs when parties with competing interests reach a mutual agreement through discussion and compromise.
In a personal injury case, such as one that arises after a car accident or slip and fall, the accident victim may file an insurance claim with the at-fault driver’s auto liability or homeowner’s insurance policy. The victim (or their personal injury lawyer) may try to negotiate a settlement with the insurance adjuster assigned to the claim.
These parties have competing interests because the insurance company wants to settle the claim for as little money as possible, while the accident victim wants to recover as much compensation as possible. Through negotiations, they may be able to reach a middle ground to resolve the case.
Which Factors Affect a Case’s Value?
Every personal injury case is different, so there’s no set “fair” value. The potential value of a claim can depend on factors such as:
- The severity of the injury: Accidents that involve more serious injuries like spinal cord injuries, traumatic brain injuries, or those that result in permanent disability are worth more than those involving minor injuries.
- Insurance policy limits: The insurance company will only agree to pay up to the policy limits, and it will try to minimize the case value as much as possible. An experienced attorney can review all applicable insurance policies and identify the policy limits.
- Strength of the evidence: Evidence of clear liability, such as a finding of a traffic violation, can help strengthen a case, as can video footage or video statements that support the victim’s version of events. With stronger evidence, insurance companies will be more likely to try to resolve the case before trial because they might be worried that a jury will make an even larger award.
- Comparative fault: If the accident victim contributed to the accident, the value of their claim can be reduced proportionately by their degree of fault.
An experienced personal injury attorney will know how to best highlight the strengths of your case and fight for maximum compensation.
When Negotiation Occurs in the Legal Process
Negotiation can occur at any time during a personal injury case. The most common points in the legal process when settlement negotiations take place include the following:
- Before a lawsuit is filed: Many personal injury cases resolve early. An attorney may present evidence and legal arguments to the insurance adjuster, highlighting the strength of the claim and the risks of litigation, which can lead to a settlement before court involvement begins.
- After a lawsuit is filed: Filing a lawsuit does not end negotiations. In some cases, once the insurance company recognizes that the attorney is prepared to proceed to trial, it may become more willing to settle.
- After discovery is completed: Discovery allows both parties to gather evidence and evaluate the case more fully. With a clearer understanding of the strengths and weaknesses on each side, settlement discussions often become more productive at this stage.
- During or after trial: A case can still settle even after the trial has begun. In some situations, the parties may reach an agreement before the jury delivers a verdict or, in rare cases, after a verdict is reached to avoid the time and expense of an appeal.
Although settling earlier in the process can save time and expense, a personal injury claim may be resolved through negotiation at nearly any point.
The Process of Obtaining a Settlement
Obtaining a settlement through negotiations involves many steps, including the following:
- Seeking medical attention to link your injuries to the accident
- Filing an initial insurance claim
- Receiving a reservation of rights letter from the insurance company acknowledging the claim and its rights regarding processing the claim
- Preparing a demand letter that provides details about the accident, why the insurance company is responsible for paying, and how much compensation you are seeking
- Negotiating for a fair settlement, which may involve several rounds of negotiations
- Signing a settlement agreement in which you agree not to pursue further legal action in the matter in exchange for the settlement amount
An experienced attorney can guide you through this legal process.
A Charleston Personal Injury Lawyer Can Help
Navigating a personal injury claim in West Virginia and negotiating with insurance companies can be complex, especially while recovering from an injury. A Charleston personal injury lawyer can evaluate the facts of the case, gather supporting evidence, and handle negotiations with insurers to pursue fair compensation.
To learn more and schedule a free consultation, contact our Farmer, Cline & Campbell Personal Injury Lawyers at (304) 346-5990 today.
