Most people imagine dramatic courtroom scenes when they think about personal injury claims. The reality might surprise you. The vast majority of personal injury claims never see the inside of a courtroom. Instead they reach settlement through negotiation.
The Statistics
Only about 4 to 5 percent of personal injury cases in the United States actually go to trial. This means approximately 95 to 96 percent of claims are resolved before trial through settlement negotiations. Insurance companies and defendants often prefer to avoid the unpredictability and expense of court proceedings. Plaintiffs frequently accept reasonable settlements rather than enduring years of litigation with uncertain outcomes.
The settlement rate varies somewhat depending on the type of case. Auto accident claims settle at even higher rates than the average. Medical malpractice and product liability cases go to trial slightly more often though still at relatively low percentages.
Why Most Cases Settle
Economic Factors
Trials are expensive for everyone involved. Both sides must pay for expert witnesses, court costs, and additional legal preparation. These expenses can quickly add up to tens of thousands of dollars. A settlement eliminates these costs and provides certainty about the outcome.
Insurance companies employ teams of analysts who calculate the probable cost of losing at trial versus settling. When the math suggests settlement makes more financial sense they usually take that route.
Time Considerations
A personal injury case that goes to trial might take two to three years to resolve. Some complex cases take even longer. Settlements can be reached in months rather than years. Many injured people need compensation sooner rather than later to cover medical bills and lost wages.
Privacy and Stress Reduction
Court proceedings become public record. Many defendants prefer settlements that include confidentiality agreements. Trials also create significant stress for all participants. Testifying requires reliving traumatic events and facing aggressive cross examination. Many injury victims prefer to avoid this experience if they can secure fair compensation through settlement.
When Cases Do Go to Court
Cases that proceed to trial usually involve one or more of these factors:
Liability Disputes
When the parties strongly disagree about who caused the accident or injury the case is more likely to go to trial. If both sides believe they have convincing evidence they may choose to let a judge or jury decide.
Valuation Disagreements
Sometimes both parties agree on liability but not on the value of damages. If the insurance company believes injuries are worth substantially less than what the plaintiff demands the case might proceed to court.
Bad Faith Insurance Practices
When an insurance company refuses to offer a reasonable settlement despite clear liability and documented damages a trial may be necessary. These cases sometimes result in additional punitive damages against the insurer.
Precedent Setting Cases
Some cases involve novel legal questions that might set important precedents. Both plaintiffs and defendants may pursue these cases to trial to establish favorable legal interpretations for future situations.
The Settlement Process
Most personal injury claims follow a predictable path toward settlement. After medical treatment reaches a stable point the attorney sends a demand letter to the insurance company. This begins a negotiation process that often results in settlement.
Sometimes claims require mediation where a neutral third party helps facilitate an agreement. Even cases that begin in litigation often settle before trial during court ordered settlement conferences or after key pretrial rulings.
Making Your Decision
Deciding whether to settle or go to trial is a personal choice that depends on your unique circumstances. A skilled personal injury attorney will help you understand the strengths and weaknesses of your case and the likely outcomes of different approaches.
Tools like those offered by InjuryClaimCalculator.us can help you estimate the potential value of your claim based on similar cases. While these calculators provide useful guidelines remember that every injury claim has unique factors that affect its value. Consulting with an experienced attorney remains the best way to determine the optimal strategy for your specific situation.