In Texas, personal injury victims face a critical choice: either accept an out-of-court settlement or proceed to litigation and trial. The decision between a settlement vs. litigation for your personal injury claim often comes down to several factors, including the strength of your case, whether the insurance company makes a fair offer, and your personal legal goals.
If you’re not sure whether you should settle or go to trial in Texas, speaking with a Houston personal injury lawyer can help you weigh your options. Attorney Joe Stephens at The Stephens Law Firm offers free consultations to discuss the details of your claim, walk you through what to expect with each choice, and share how we can help with your case. Contact us to learn more.
KEY TAKEAWAYS
- After an accident, injured victims may have the option to settle out of court or take their case to trial.
- Settlements may offer a quicker resolution, help you avoid unnecessary stress and expenses, and keep your claim details confidential.
- While settling has its benefits, amounts may be lower than a trial verdict, and defendants are not required to admit fault.
- Litigation can lead to higher compensation. However, the trial process can be lengthy and costly for victims.
- An experienced personal injury attorney can guide you through the claims process and help you make the best decision for your case.
What Is the Difference Between a Settlement and Litigation?
After being injured in an accident, you may be entitled to compensation for your damages, including medical bills, lost income, and pain and suffering. The first step is to make a claim through the at-fault party’s insurance company. An adjuster will review your claim and make a settlement offer, which you can decide to accept or reject.
If the insurance company tries to pay less than your claim is worth or does not make a fair offer, you can move forward with litigation. This is the legal process for resolving your claim, which starts with filing a formal complaint with the court.
While a settlement is a private agreement that is reached out of court, litigation involves the formal court process that could eventually lead to a trial before a judge and jury.
When Settling Your Case May Be the Better Choice
Most personal injury cases are resolved out of court because there are benefits to settling vs. going to trial. Here are reasons why settling your case may be the right option for your situation:
Liability Is Clearly Established
If liability is unclear, the insurance company may try to dispute the claim or shift more blame to you to minimize the amount they pay. When liability is clearly established in your case, it’s harder for insurers to use these unfair tactics to deny liability. This could lead to a favorable offer.
The Offer Reflects the Claim’s Full Value
When you work with an experienced personal injury lawyer, they will carefully identify and value your current and future damages to include in your claim. If the insurance company offers a settlement amount that accurately reflects your losses, it typically makes more sense to accept it.
Immediate Financial Stability Is Required
Depending on your financial situation, it may be more beneficial to settle than to proceed with lengthy litigation. However, accepting a quick settlement could be risky without legal guidance. Insurance companies often make lowball initial offers and pressure victims to accept them out of financial necessity. Consider working with a trusted attorney to help you decide when to settle a personal injury case.
Privacy and Confidentiality Are a Priority
If you’re dealing with a sensitive situation, reaching a settlement outside of court means you can keep the details of your claim private and confidential. Court filings, hearings, and trial outcomes are generally public unless sealed or otherwise protected by law.
The Risks of Litigation Outweigh Potential Gains
Moving forward with litigation can be difficult for many people because trials are often stressful, lengthy, and expensive. A settlement can help you avoid these challenges while still providing financial relief and closure.
Pros and Cons of Settlement and Litigation
When Litigation May Be Worth Pursuing
Although most cases settle before trial, many accident victims choose to proceed with litigation. Here’s why:
- Lowball offers: When the insurance company refuses to make a fair offer, you can work with an attorney to seek the full value of your claim in court.
- Insurance denials: In some cases, insurers will deny a valid claim. Litigation is a way to pursue the compensation you deserve.
- Strong evidence: If your legal team has compelling evidence that shows the defendant was negligent, it may be easier to reach a favorable verdict.
- Severe injuries: Catastrophic injuries often require ongoing medical care and can change a person’s quality of life. When the insurance company disputes your future losses, it may be worth going to trial to fight for those damages.
If you decide to take legal action, there is a deadline to file your claim. In Texas, the statute of limitations for personal injuries is two years from the date of the accident. If you do not file your lawsuit within that two-year timeframe, you risk losing your right to recover compensation.
Factors That Influence the Settlement vs. Litigation Decision in Texas
When deciding whether to proceed with a personal injury settlement vs. lawsuit, you can work with a trusted attorney to evaluate your options. A legal professional will look at many factors, including:
- The severity of your injuries and future needs
- The strength of evidence to support your case
- Insurance policy limits compared to your actual losses
- If you’re partly responsible for the accident, and how much fault you share
Because Texas uses a modified comparative negligence system, accident victims can share up to 50% of the fault and still recover some compensation. Unfortunately, insurance companies may use this to their advantage, placing more of the blame on you to lower their payout.
Attorney Joe Stephens can protect you from unfair treatment, dispute fault, and fight for the full value of your losses—whether it’s at the settlement negotiation table or before a judge and jury in court.
If you’ve been hurt in an accident, you’re probably feeling overwhelmed and unsure where to turn. Joe Stephens is here to listen, guide you, and fight for the full compensation you need to move forward with your life.
Get Help Deciding the Right Path for Your Injury Case
Accepting a settlement after an accident can be a stressful decision, especially when you’re unsure if the offer is fair. That’s why working with a personal injury attorney can help you understand your options and make the most informed decisions for your future.
Since 1985, Joe Stephens has gained national recognition for his tireless advocacy on behalf of injured victims in Texas. As one of the top trial lawyers in the state, he is prepared to take your case to court when necessary. Call (281) 201-0035 or contact us online to schedule your free consultation today.
