When a case gets settled, an issue has been resolved. That resolution has taken place without any need for presentation of arguments in a courtroom. Instead, a settlement has arisen from a series of negotiations. In rare cases, mediation encourages settling.
How does a monetary award get determined by a settlement?
Both settlements and personal injury lawsuits end with a determination of how much money the defendant owes the plaintiff. Still, with a settlement, both of the disputing parties have a rough idea, as to the compensation’s size. Although the settlement amount gets negotiated, the negotiations start with an offered amount, one that has come from the defendant’s insurance company.
Understand that the insurance company does not pull its offer out of thin air. Instead, it takes a careful look at the demand that was presented by the victim/claimant. As opposed to the situation in a court case, the amount of money agreed to upon settlement must stay within the bounds created by the victim’s demand and the insurance company’s initial offer.
How a settlement differs from the court’s granting of an award:
Victims that have agreed to a settlement have no right of appeal. That fact accounts for the actions of most insurance companies. They tend to favor settling over fighting an opponent in court. After a victim has agreed to the terms of a settlement, he or she cannot ask for more money. The settlement amount must suffice, even if the victim’s injury has been linked to development of new symptoms.
On the other hand, accident victims manage to hide the facts about their private lives from the eyes and ears of the people in a courtroom. The judge in a courtroom does not ask the personal injury lawyers in Monterey Park, and Moreno Valley for the plaintiff or the defendant to respect the privacy of those with a claim or those on trial.
Sometimes a judge might rule that certain facts stated by a witness are irrelevant. That possibility shines a spotlight on yet another difference between settling and fighting things out in court. Discussion of emotional issues is not admitted in court.
During negotiations, a victim has the right to raise the issue of his or her emotional stress. A smart victim can use mention of that emotional stress, in order to push the insurance company to make a larger offer.
That difference between negotiations and going to court highlights yet another reason that insurance companies prefer to settle. When done early in negotiations, settling can limit the amount of time in which a victim might raise an emotional issue. At the same time, it limits the amount of money that might be agreed to by the 2 disputing parties.