You may sometimes wonder about what are personal injury accident legal settlements, because they are in the news quite frequently. There are advertisements from companies who offer to buy out settlements and annuities, and many big cases in the news do result in settlements prior to court trials. A settlement can be presented as a lump sum, or awarded over time, in increments. Occasionally the court will supervise the settlement and any attempts in the future to change the agreement. Settlements are an asset that can be bought or sold.
There are many types of claims that can be made for accident damages. Accidents that result in bodily injury or death are allowed fair compensation by the legal system and laws. Many personal injury lawsuits are initiated, but about 95% of these lawsuits are settled out of court, before any court appearances are made.
The best reason for making a legal settlement on the part of the defendant is that they will probably save money; most jury awards for personal injury lawsuits are very high dollar amounts. Companies and individuals can usually settle with the plaintiff for a considerably lower dollar amount out of court. The plaintiff may be interested in making a settlement agreement for many reasons. They may be just tired of the long time these cases take, they may need the money now, or they may feel that a jury might not award as much money as the settlement offer.
Settlements are good for both sides of a lawsuit. Both will have reduced legal costs, and the defendant may find they can settle a lawsuit for far less money that they would be asked to pay by a court jury. Some personal injury jury awards are in the millions of dollars, so if the defendant can avoid a jury trial, that is in their best interests.
For the plaintiff in the personal injury lawsuit, settlement can also be favorable. They may receive less money, but on the other hand, it may be money they actually receive. A large jury award may bankrupt another person or company and no money could then be recovered. A settlement agreement is usually collectible. Settlements can be made under court jurisdiction to preserve the plaintiff's best interests by receiving long term, regular income instead of a lump sum.
If a settlement is awarded in increments, the recipient can sell the settlement agreement to a third party in order to collect one large lump sum immediately. This is not the best path to follow, because the interest fees involved are very high, quite like those for a cash advance loan. The plaintiff could lose a third of their award or more.
Personal injury accident legal settlements can be very favorable, and are more likely to be collectible by the plaintiff. Settlement negotiations are handled by the personal injury attorney on behalf of the plaintiff, but the plaintiff will need to make the ultimate decision about whether or not to accept any offer.
