Why Do Most Personal Injury Cases Settle?

In Alabama and throughout the country, most personal injury claims settle long before trial starts.  Trial litigation is actually rather uncommon.  Industry observers estimate that up to 95 percent of personal injury claims are settled — but why?
Let’s take a closer look.
Understanding Litigation Uncertainty and RiskLitigation is not only costly (from both a time and financial perspective) but is also inherently uncertain. Uncertainty affects all parties involved in litigation.

For example, suppose that you have been injured in a car accident that was caused by a negligent driver. Though you are confident in your case, there may be a number of lingering uncertainties. You’ll have to prove that the defendant was actually negligent under the circumstances, and that their negligence caused your injuries. Further, you’ll have to prove that your damages claim is reasonably calculated and accurate.

So, assume that you have a 50 percent chance of winning the case, and your damages claim is $100,000. The defendant argues that the damages are just $40,000. Accounting for these uncertainties, the settlement amount is likely to hover around $45,000 (50 percent of $100,000 is $50,000, and then split the difference with the $40,000 damages amount argued by the defendant).

Though this amount is lower than your “ideal” amount, it avoids the rather catastrophic circumstance of you recovering nothing in the event that the case goes to trial and the court gives an adverse judgment.
Attorneys Must Be Willing to Take the Case to TrialIn personal injury settlements, any “factor” that increases the likelihood that you would succeed at trial (if the case were to proceed to trial) gives you an upper-hand in negotiating a compromise. For example, if the defendant concedes that they did act negligently, and that their negligence caused you to suffer injuries, the only remaining disagreement might be over the extent of the damages. In such circumstances, you would be in a position of strength when negotiating a settlement — many of the litigation uncertainties were resolved in your favor.

For this reason, attorneys who are willing and able to take a case through to trial — if necessary — are often able to secure favorable settlements for their clients. Though an amicable settlement might eventually be reached, successful attorneys prepare for the possibility of trial litigation at an early stage of the process and are relentless advocates from start-to-finish. This ensures that the defendant understands they cannot bully you into an unfavorable settlement — if the settlement is insufficient for your needs, then your attorney is willing and able to reject it and push through to trial.

If you have been injured in an Alabama accident that was caused due to the negligence or wrongful misconduct of another person, then you may be entitled to sue and recover damages as compensation. But you do not have an unlimited amount of time to pursue your case. Seek professional guidance on how to proceed with your claims and get compensation for your suffered losses.