Table of Contents
It’s never easy to deal with the aftermath of an accident that resulted in an injury. Sometimes, you feel like you’re being pulled in every direction and have no idea where to go. Not only will you suffer physically and mentally, but you’ll more than likely feel the impact of it financially as well. In the midst of mounting bills, it is reasonable to consider your options for pursuing compensation. What is the best course of action? Is it better to file an injury claim or a lawsuit?
Injury Claim Vs. Lawsuit: Is There A Difference?
It is common for someone outside of law space to mistakenly use the terms injury claim and lawsuit interchangeably. However, they are different legal processes. Each has pros and cons that can make it more beneficial or detrimental in certain situations.
The primary difference between an injury claim and a lawsuit is their procedural settings and complexity. An injury claim is a pre-litigation process where you negotiate directly with the at-fault party’s insurance company to settle outside of court, often faster and with fewer costs. On the other hand, a lawsuit is initiated when these negotiations fail or the insurance company denies a fair settlement, involving formal legal proceedings in court that include filing complaints, conducting discovery, and potentially a trial, generally taking more time and resources to reach a resolution.
That said, better understanding the difference between the two can help you choose the best course of action after sustaining an injury. Below, we intend to distinguish between the two terms often mentioned in personal injury cases. We’ll discuss the definitions of both, their respective procedures, their pros, and cons, why it’s important to file one, and whether you need to retain the expertise of a lawyer instead of handling it on your own.
What Is A Personal Injury Claim?
In the field of personal injury law, a claim is a formal demand for compensation directed at the negligent party. It seeks payment to cover the costs of the accident the party caused, particularly the damages sustained by the victim. The claim process occurs outside of court, and many people can be involved. Claims are usually filed against insurance companies.
During or after recovering from an unfortunate accident, most people may choose to file a claim against the at-fault party’s insurance provider. A personal injury lawyer can provide legal assistance in this regard.
Common Types Of Personal Injury Claims
From traffic incidents and hit-and-runs to dog bites and workplace accidents, injury law covers many things. Listed below are a few examples of personal injury claims:
- Car Accidents — Whenever someone sustains an injury resulting from a car accident that wasn’t their fault, they may seek compensation from the at-fault driver’s insurance provider.
- Slip-And-Falls — Someone who is injured in a slip-and-fall accident on a private or public property may be entitled to recover damages from the premises owner.
- Premises Liability — Property owners are responsible for maintaining a safe environment for their guests. Any unsuspecting individuals who get injured after legally entering a property where a dangerous condition exists may pursue compensation through a premises liability claim.
- Product Liability — If you are injured while using a defective product, you are entitled to demand reimbursement for the damages you incurred. You can do so via a product liability claim against the item’s manufacturer.
- Medical Malpractice — These cases deal with injuries caused by a medical practitioner’s negligence or inappropriate patient treatment. A common example is birth injury.
- Wrongful Death — A wrongful death claim involves a victim’s untimely death caused by someone else’s negligence. If a pedestrian was killed, for instance, because of an accident at an unmarked construction site, their family is entitled to monetary reparations.
When a claim is filed, the insurance company can send an adjuster, an attorney, or other experts to handle it. The adjuster will review the evidence and decide on the appropriate compensation the claimant should receive. The claimant, not the insurance company, decides whether to accept, reject, or negotiate a claim.
Experienced injury lawyers strongly advise against accepting any offer without getting legal representation. A claim’s true value is usually higher than the insurer’s initial proposal. When you work with the best car accident lawyers at Arash Law, we will ensure that you’ll recover the maximum amount possible to help you recover financially.
Understanding The Claims Procedure
The claim process usually starts with a demand letter addressed to the at-fault party’s insurance company. In this letter, the injury lawyer will summarize the injuries and damages incurred by the victim and request a fair amount for compensation. Notably, the demand letter may or may not state the specific amount the injured party is pursuing.
After receiving the letter, the insurance company will respond with a letter of reservation of rights. At this point, they can deny the claim if it lacks merit or initiate the next step of the process: the negotiation stage.
The Negotiation Stage
Personal injury lawyers see the negotiation part of the claims procedure as a game of legal ping-pong. At this stage, both parties will start throwing trade offers and counteroffers until they either reach an agreement or tire each other out.
It is worth noting that the claimant can file a lawsuit at any time during the negotiation stage. That said, doing so will not necessarily end negotiations. Both parties may still try to reach a settlement until the jury’s verdict. Rather than dealing with many cases, the court encourages the disputing parties to settle.
Alternative Dispute Resolution
If conventional negotiations don’t work, the claims procedure can move toward Alternative Dispute Resolution (ADR). This stage refers to the different ways the two parties may resolve a dispute without going to trial. ADR proceedings tend to be less formal, more confidential, and less stressful than traditional court proceedings.
Here are some of the most common ADR processes:
- Mediation — The two parties agree to settle with the assistance of a third party.
- Arbitration — The disputing parties hire a private judge to resolve the dispute for them.
- Neutral Evaluation — A neutral expert on the matter predicts what the court will do to try to convince the parties to reach a settlement.
Generally, ADR is cheaper and faster than going to court to resolve a dispute.
The Settlement Agreement
Any lawyer for personal injury would tell you never to agree to a proposed settlement through a handshake or exchange of words alone. You should always obtain a professionally drafted settlement agreement before settling any claim.
Your injury lawyer should thoroughly review any agreement drafted by the other party for inconsistencies or loopholes before you can sign it. Suppose that the liable party refuses to pay even after both sides have already signed the settlement agreement. The claimant can then sue them under contract law.
The settlement agreement stage is where most injury claims come to an end.
What Factors Affect The Outcome Of A Personal Injury Claim?
Numerous factors can affect a personal injury claim’s outcome, such as:
- Your injury attorney‘s ability to establish fault
- Your situation’s complexity and elaborateness
- The other party’s willingness to cooperate
- The amount of money you are likely to receive
Personal injury claims have some advantages over lawsuits, mainly because you don’t have to go to court. However, there are still many factors to consider before filing one.
What Is A Personal Injury Lawsuit?
A personal injury lawsuit is a civil action that an injured party files against a person or organization that caused their injuries. The ultimate goal of this action is to resolve a dispute between opposing parties. If a claim fails to get a fair settlement, the next course of action is typically to file a personal injury lawsuit. In order to win, plaintiffs and their injury attorneys must prove that the defendant was responsible for the accident and injury.
Often, lawsuits last more than a year before they are resolved. The procedure for filing a lawsuit includes several steps, including discovery, motions, hearings, trials, and possible appeals. These processes can take a lot of time and money, and not everyone is willing to go through them. That is why having a competent personal injury attorney by your side is crucial whenever you intend to file a lawsuit.
How To File A Lawsuit
In order to file a lawsuit, the claimant must follow these steps:
- Inform the court clerk of your complaint in writing. There are consequences to every sentence in this document, so an experienced injury attorney should draft it.
- You must pay a filing fee to the court.
- Let the defendant know that a lawsuit has been filed. The claimant must follow precise procedures, and they cannot do it on their own.
There will usually be a formal answer from the defendant responding to the allegations in the complaint.
Pretrial Discovery
Pretrial discovery is a stage in legal actions wherein the parties involved may exchange information on the evidence that will be presented in court. Here are a few evidence-gathering tools used in pretrial discovery:
- Depositions — Statements made outside the courtroom by witnesses each side plans to call at trial.
- Demands for Production — The process of examining evidence in the opposing party’s possession. Document copies and physical evidence, such as a wrecked car, are included.
- Interrogatories — The other side answers written questions under oath.
- Requests for Admission — Both sides seek admission of facts that are often not disputed.
During the pretrial discovery stage, new information can give one side a big edge that can restart stalled negotiations or even force settlements in their favor.
Motions
Motions are filed with the court when parties want the judge to take formal action. Among the most common motions observed in a personal injury lawsuit are:
- Motion to Dismiss — It is a request typically submitted by the defendant for the court to dismiss the claim against them.
- Motion to Suppress — Filed by one party that asks the judge to exclude specific evidence (illegally obtained evidence, for example).
- Motion for a Change of Venue — This request asks the judge to move the trial to a different location.
During a lawsuit, a party may file dozens of motions to try and sway the case in their favor.
Trial
After all that, the trial can finally begin. The trial stage can last several days to weeks for typical personal injury cases. In a trial, the parties argue their positions while questioning witnesses and presenting evidence. A judge or jury will then decide if the defendant is liable for the accident in question and for the losses sustained by the plaintiff. This also includes the amount of damages the defendant must pay.
Once the trial ends, either party is allowed to file an appeal. An appeal is a written request filed at the conclusion of a trial that asks another court (usually the Court of Appeals) to reassess or review the trial court’s decisions.
Depending on its nature, an appeal may take several months to several years to complete. Upon exhaustion of the appeal process, the losing defendant must pay the damages ordered at trial or on appeal.
What Factors Affect The Outcome Of A Personal Injury Lawsuit?
Like personal injury claims, several factors can influence how a lawsuit proceeds. In fact, there may be even more variables at play in lawsuits compared to claims.
For example, the judge presiding over the case and the people on the jury committee have much to do with the outcome of a lawsuit. Essentially, you are putting the amount of compensation you can receive in the hands of strangers. While it seems risky, there is also the potential for a bigger payout this way, especially with a trustworthy personal injury attorney by your side.
Even though it is recommended that you file a lawsuit only after your personal injury claim fails, you should know what to expect if you must.
Pros And Cons Of Claims Vs. Lawsuits
Below is a brief discussion of the pros and cons you should expect whenever you intend to pursue a claim or a lawsuit:
Personal Injury Claims
Resolving a claim without involving the court has numerous benefits. For one, it is more cost-efficient, as you won’t have to pay court fees and any extra costs. More importantly, claims allow most claimants to get money faster.
The speed of a claim is primarily determined by your willingness to negotiate. If you are willing to accept a lower offer, then expect the process to be done in no time. Meanwhile, if you want to push for higher compensation for the damages you suffer, prepare for several negotiations that can last weeks.
However, bear in mind that it also has disadvantages. These downsides include dealing with an insurance company that may act as if concerned when, in reality, they want to save as much money as possible. As mentioned above, the insurance company is the one that decides how much remuneration they intend to provide. Seeing as they are a business at the end of the day, expect them to try to minimize the amount they pay you.
There’s no such thing as a “guaranteed” settlement in personal injury cases, but filing a claim is the closest you can get to it. While there is a possibility that the insurance company will outright reject your claim, such instances are few and far between, especially if you have strong evidence to present. Also, remember that accepting a settlement may not guarantee you full compensation for future losses. Unlike in lawsuits, winning a case ensures that all bases are covered.
Personal Injury Lawsuits
Filing a lawsuit has the biggest advantage of being heard in an objective and fair court. You may receive even more reimbursement than initially expected based on the court’s decision. It is worth noting that some cases may involve punitive damages, especially if the defendant’s behavior is deemed to be particularly appalling.
Conversely, completing a lawsuit can take a lot of time. The litigation process is so lengthy that some people may feel discouraged halfway through it. It can take months or years. Unfortunately, not everyone has the time or patience for that, thus highlighting the benefits one could get by hiring an injury attorney.
The risk of pursuing a lawsuit is also far greater than the risk of pursuing a claim. Once your case falls into the hands of the jury, there’s no turning back. You may win a big payout if the jury determines that the defendant was negligent or lose if they side with the other party instead.
Which Is Right For You: A Claim Or Lawsuit?
By now, you’re likely well-informed about the processes, benefits, and disadvantages that you can expect whichever way you choose to pursue compensation. If you’re still unsure, here are a few factors to consider when choosing which legal action is right for you:
The Severity Of The Injury Sustained
If your injury is minor, you should file a personal injury claim to recover the damages you are owed. Doing so is the best way to get recompensed as soon as possible and move onward. Alternatively, if your injuries are severe, such as amputations or permanent disabilities that may affect your daily life in the long run, filing a lawsuit is the way to go. Winning a lawsuit can guarantee you are well compensated for future losses.
The Liable Party Is Clear/Unclear
If the liable party is clear and the insurance company won’t dispute it, the most appropriate action is to pursue a personal injury claim. That said, be prepared to file a lawsuit in case the insurance company refuses to give you a fair settlement or when negotiations fall apart because of lowballing.
There are a few other instances in which filing a lawsuit is better than filing a claim based on liability:
- If multiple parties are considered responsible for the injuries you sustained following an accident
- The responsible parties are disputing how much they each contributed to the overall damages you sustained
- The defendant claims that you are partly responsible for your injuries
In such cases, a trial may be necessary to acquire a decisive ruling on which parties are liable and how much each is responsible for.
The Other Party’s Insurance Limit
Knowing the insurance limits of all parties involved is crucial when trying to figure out the best course of action: a claim or a lawsuit.
In cases where the other party has minimum coverage, and the damages you are pursuing exceed their policy amount, filing a lawsuit is the right move to ensure that you get what you are seeking. Additionally, suppose that the other party has no insurance at all. Then, you’d also need to file a lawsuit to recover proper compensation.
How Can A Lawyer Help You With Your Personal Injury Case?
Choosing between accepting a settlement offer or filing a lawsuit can be difficult, especially if you have limited knowledge of personal injury law. You must know that skilled personal injury lawyers can help you build a strong case based on evidence and facts and advise you on the best course of action to take, given your circumstances.
Furthermore, hiring a competent injury attorney ensures you know how much your damages are worth. Again, insurance companies and adjusters aren’t your friends. They will not tell you if you are about to accept a settlement offer much less than what you deserve. In fact, they’d do their best to compel you to agree to settle for something that looks fair but is actually not. Such tactics wouldn’t work with an experienced injury attorney on your side.
Personal injury lawyers have the skills and resources to handle all aspects of your case. They can, among other things, collect evidence, document damages, and calculate the true value of your case. Simply put, you can leave the heavy legwork to your injury lawyer and focus 100% on recovering. They are willing to do everything in their power to ensure that you get the amount of money you deserve.
Frequently Asked Questions
What Does “Settling A Claim” Mean, And Is There A Difference Between A Claim And A Settlement?
You might receive an offer from the insurance provider to settle your claim. When you “settle a claim,” you agree to receive a certain sum of money, after which you release your right to sue the party and release them from all liability. It’s best to hire a lawyer specializing in personal injury to guide you in settling a claim.
Before accepting any offer, you should be aware of the following crucial information regarding insurance settlement negotiations:
- It puts you at a disadvantage when you settle an injury claim and accept payment before your medical treatment is even completed, as your medical costs can suddenly balloon.
- The settlement agreement is legally binding, which means if you don’t fulfill your obligations, if any, the other party can sue and take you to court.
- You forfeit your legal right to seek further compensation or claims, even if you discover additional injuries or damages.
- You may be able to file an additional claim against the insurance company for bad faith insurance practices if they behave badly in relation to your claim. Hire an injury attorney to help you prove this.
What Is The Process Involved In An Insurance Company’s Claim Investigation?
The insurance company will start its investigation process the moment it receives an insurance claim. To safeguard the interests of their business, they employ auditors or attorneys. To protect yours, hire an injury lawyer to represent you. Be prepared for an insurance company to question you and pose follow-up queries about what happened when they started their investigation.
In addition to the details you entered on the claim form, an insurance adjuster might ask for more information, such as:
- Permission to look into your medical records
- A copy of your medical records and bills
- The pictures and videos you took while on the scene
- A copy of the police report, if any
Giving full disclosure of your medical damages will increase the likelihood of you receiving a reasonable settlement.
In addition, investigators will look into the following:
- Witnesses who may have witnessed the incident
- Physical evidence at the scene of the incident
- Any vehicle involved in the accident
An insurance company may send a loss adjuster or claim investigator to investigate a substantial loss claim. They will look into what caused the accident and determine whether your losses are covered by your insurance. An injury lawyer can help level the playing field if you feel like all your losses aren’t being considered.
In Summary, here’s the main difference…
An injury claim is a formal request for compensation made directly to an insurance company or the at-fault party, typically resolved outside of court. It involves negotiating directly with the insurer to cover damages without formal legal proceedings, and it’s generally quicker and less costly.
A lawsuit is a formal legal action initiated when a satisfactory settlement can’t be reached through an injury claim. It’s filed in court and involves more complex procedures such as discovery, trials, and potential appeals, aiming to secure comprehensive compensation for disputed or extensive damages. This process is lengthier and requires more resources.
Choosing between filing an injury claim or a lawsuit depends on the specific circumstances of your case, the extent of your damages, and the willingness of the insurance company to offer a fair settlement. Consulting with a knowledgeable personal injury lawyer is crucial to determining the most appropriate course of action.
Filing A Claim Or A Lawsuit? Call Arash Law To Help You Either Way!
Still unsure of the next course of action? Arash Law has the answers you are looking for! We have the best personal injury lawyers ready to be your guiding hand, no matter how complex you think your case is. Our team can evaluate and investigate your case’s factors to determine its worth and negotiate with the insurance company to pursue the maximum available compensation. Also, if the matter can’t be fixed outside of court, our injury attorneys are ready to present your case strongly before a judge or jury.
If you’ve been in an accident and are thinking, “I need a personal injury lawyer,” do not hesitate to call us. Call us at (888) 488-1391 to get your case reviewed. We have a great track record and have helped clients get over $750 million in settlements. We also work on a contingency fee basis, which means that our lawyers don’t get paid unless we win your case.
Our services reach many areas in California, including major cities such as Los Angeles, San Jose, San Francisco, Sacramento, San Diego, Bakersfield, Fresno, Anaheim, Riverside, San Luis Obispo, Santa Ana, Oceanside, Santa Rosa, Glendale, Fremont, San Bernardino, and Visalia.
