A common misconception of filing a Michigan personal injury claim is that it automatically means that you will need to attend court. The reality is, in most personal injury cases, going to court is rarely necessary. Instead, almost all cases reach a resolution outside of court, either through direct negotiation or alternative methods like facilitation, arbitration, or mediation.
Why Most Personal Injury Cases Settle Outside of Court
Settlements are the likely outcome of most personal injury cases. In fact, roughly 98% of all personal injury cases settle without a jury trial. Through a settlement, both parties can avoid the uncertainty, cost, and time associated with an actual court trial. Insurance companies specialize in managing risk. At the end of the day, measuring risk is how they make money. Not only does this involve how much to charge a person to insure their car, boat, or house, but it also includes deciding whether to settle or go to a jury trial.
Anything can happen at a jury trial. Insurance companies hate uncertainty. And at a jury trial, insurance companies are leaving the decision to a group of everyday people who may award more money than they think a case is worth. This is especially true when going against the skilled and experienced Michigan personal injury lawyers at the Lee Steinberg Law Firm.
To avoid these risks, the insurance company usually settles out of court or before a trial.
Can a Case Settle Without a Lawsuit?
Yes, in many situations a good Michigan personal injury law firm can get you top compensation without even filing a lawsuit. This occurs when your lawyer negotiates a settlement directly with the insurance adjuster. This is called settling at the “pre-litigation” stage.
Sometimes, a person’s injuries are worth every bit of the insurance policy. In these cases, it is advantageous to obtain the full insurance policy from the at-fault party without filing a lawsuit. Costs are minimal and you get your money quickly. Other times, medical treatment is limited or there are liability issues. When this happens, a fair settlement offer may be the best outcome.
Filing a lawsuit is not required in every case. Once a case goes to court, a person can expect to wait at least a year for a settlement. If your case can settle for good money without going to court, that is advisable. The injured person and family members can avoid invasive depositions by insurance defense lawyers, lower costs, and secure money more quickly.
When Does Court Become Necessary?
While court isn’t always necessary, there are times when it is required to reach resolution of your case. This usually happens when the parties cannot agree on a fair settlement amount or when there is a disagreement on how much responsibility each party had in the incident.
If your case needs to go to trial, the personal injury attorneys of the Lee Steinberg Law Firm will be by your side every step of the way. We always make sure our clients and their family members are prepared and supported throughout the process. We aim to make this journey as smooth and stress-free as possible.
What are the Disadvantages of Settling a Case Out of Court?
Sometimes there are disadvantages to settling out of court. First, the settlement agreement will include a privacy clause stating that parties can’t publicize the settlement amount. Second, these agreements also state the defendant is not publicly admitting liability. Third, when you settle the personal injury case you are giving up the right to have the public hear about what the defendant did wrong.
Why Does a Judge Prefer a Settlement over a Trial?
Judges often prefer settlements over trials because they save time and resources. It also reduces the court’s caseload. In Michigan, judges have a lot of pressure to get cases resolved. And many don’t have the time to sit through a three-week jury trial when they have hundreds of other cases waiting. Settlements provide a predictable outcome and help avoid the risks associated with unpredictable jury decisions.
What are the Different Ways Settlement Can Happen?
There are a few different ways settlement happens. Every case is different but in Michigan alternative dispute resolution (ADR) is the main way most personal injury cases settle.
Facilitation:
Facilitation is when all the parties hire an independent lawyer or ex-judge to act as an intermediary between the parties in a mission to settle the case. It is non-binding, meaning you don’t have to accept what the facilitator says. However, most facilitators have been lawyers for decades. They understand the value of personal injury cases. They recognize the good points and bad points in every case for every party. Most cases in Michigan settle at facilitation.
Arbitration:
This is when the parties agree to a binding resolution that is heard by a single arbitrator or a panel of three arbitrators. The parties will present their evidence to the arbitrators like a jury trial. However, the rules of evidence are more relaxed and it is much less expensive because expert witness testimony is not always needed. When all the parties have presented their case, the arbitrators will issue an award. Arbitration can often be completed in one day.
Mediation:
In Michigan, mediation is also called case evaluation. At one time, all personal injury cases went through case evaluation. However, this no longer occurs. Case evaluation is when the plaintiff and defendant submit a written evaluation of their case, with supporting exhibits, to a panel of three attorneys. The panel then arrives at a case evaluation award. Both sides then have 28 days to accept or reject the case evaluation award. If both sides accept, the case settles for that amount. If one side rejects, the case continues.
Every Case is Unique – Get the Right Advice
No case is the same. The best way to truly know what to expect is by speaking directly with a legal professional who can guide you based on your specific situation. The Lee Steinberg Law Firm has been helping accident victims across Michigan for over 50 years.
Our team of experienced Michigan personal injury lawyers knows what it takes to beat even the largest insurance companies. We invite you to contact us at 1-800-LEE-FREE for a free consultation. Let us evaluate your specific case and work to secure the compensation you deserve.
