What’s the difference between a Settlement and a Court Award? 

Injuries stemming from car accidents are all too common. Recovering from a crash can take days and even weeks. Often, this includes visiting a doctor or a specialist, depending on the extent of the injury.

Understanding the total value of your case is essential. The financial compensation from a car accident settlement can be a lifeline, helping you repair damages, cover medical costs/debts, and maintain financial stability if you are severely injured. 

Many factors determine the value of a settlement, including the type of crash, who was involved, and the details of injuries. There is also the critical distinction of settlement versus court awards. 

 

Settlement vs Court Awards

When working with a car accident lawyer, your attorney will likely prepare your case as if it’s going to trial. This thorough preparation is crucial, ensuring you are ready for any eventuality. Insurance providers are usually keen to offer a settlement before a case goes to trial.

The insurance provider aims to keep your settlement as low as possible. Often, this means pushing for you to accept the initial settlement offer. Consulting with an expert personal injury lawyer is crucial for reasons like this. If you hire a car accident law firm in Houston at Sutliff & Stout who knows how to navigate events like this, they’ll be the best resource available to discuss your options.

If you and your legal counsel reject the settlement, it’s common for your lawyer and the insurance adjustor to enter into negotiations regarding a settlement. If you hire an expert car accident lawyer, they will represent your best interest and pursue the best available settlement. That is their duty. Your lawyer should regularly consult with you about the best decisions for your case.

In the event that your lawyer believes the insurance provider is not acting in good faith towards a settlement, they may opt for a trial. There are additonally dozens of other factors that lead to your case opting out of a settlement and pursuing a verdict, also known as a court award.

As the name implies, a court award is the grand total awarded to you by the court or a jury of your peers. If your legal counsel is not able to arrive at a settlement with your insurance provider, or if your attorney believes this is the best option, your case may head to trial. Your lawyer will argue the facts and supporting evidence to a jury of your peers or a judge. There are benefits and risks associated with taking your case to trial. If you have a thorough argument for your case, you could receive a maximum award, which is determined by the policy limits of the insurance provider, plus additional supporting details. At the same time, there is an inherent risk of a decision going against you. In this scenario, you would finish the legal process with zero compensation. An expert personal injury attorney will best consult you regarding the facts of your case. 

Hank Stout
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June 1, 2022 - Sutliff & Stout