A pretrial settlement is when the parties in a lawsuit come to an agreement before trial to work out payment for injuries and damages. Instead of taking the case to court and going through the entire trial process, the parties attempt to negotiate and come to terms on the payment. This can occur out of court, sometimes with a mediator present during negotiations.
Yes. Most injury cases do not ever reach a civil trial, as most of them are resolved through settlement negotiations. A settlement may take place even prior to the filing of a lawsuit. A private settlement between parties is a favorable way to avoid the costs in time and money associated with an auto accident lawsuit. Settlements provide a discussion arena where the parties of an accident can negotiate with each other and with their respective insurance companies (or with their own insurance companies in some instances).
First of all, you should understand the basic aim of a settlement. The purpose of a settlement is to avoid trial. This is done by an agreement that the plaintiff will forgo rights to pursue trial in exchange for a sum of money or performance of an action (such as agreeing to provide a mechanic) by the defendant.
Thus, it is necessary for both parties to firmly know exactly what they want to obtain before entering into the settlement negotiation. Settlements almost always require a lawyer and/or mediator. Some points go over with your lawyer are:
If the monetary amount agreed upon in a settlement is relatively small, the plaintiff may agree to accept the payment in a single lump sum payment. If the agreement stipulates that the defendant perform or cease performing a certain action, a judge may issue an injunction to enforce the defendant’s required response.
However, if the settlement amount is for a very high monetary amount, then the plaintiff may opt for a structured settlement involving periodic payments, such as every month or yearly. Generally a structured settlement will require that the defendant’s insurance company purchase an annuity from an annuities company, which in turn pays the plaintiff’s settlement amounts. The annuity company will typically charge the defendant a fee or annuity rates in order to make a profit.
Larger settlement amounts can get financially complicated and may involve several tax consequences for both parties, so be sure to work closely with a lawyer in discussing the method of settlement payments.
Settling a lawsuit without going to trial can provide a number of advantages:
It depends on when the settlement agreement has been reached. After the pre-trial settlement agreement has been agreed upon, payments are paid out within 20 or 30 days. Usually the settlement agreement states the time frame that the defendant has to pay. The settlement agreement can also include whether the plaintiff can add interest to the original amount owed if the defendant does not pay within the time period stated in the agreement.
In almost all settlement endeavors you will need a lawyer present to help you negotiate your position. A personal injury lawyer can help you go over the points mentioned above to ensure that you are well-prepared in entering the settlement and conclude with a favorable agreement.
In most settlement endeavors, you will need a lawyer present to help you negotiate your position. A personal injury lawyer can help you go over the points mentioned above to ensure that you are well-prepared in entering the settlement and conclude with a favorable agreement.
Last Modified: 09-21-2017 02:55 AM PDTLaw Library Disclaimer
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