Many personal injury cases are resolved through settlement negotiations between the parties. Negotiation is a bargaining process to reach an agreement that settles a dispute. For example, two parties involved in a car accident may negotiate a settlement agreement for one party to pay the other party a specific amount for damages. The same process may be applied between a store owner and a customer in a slip-and-fall case.
Generally, the party allegedly at fault for causing the victim’s injuries does not admit fault. Instead, they agree to pay the damages to resolve the matter outside court. The liability insurance company for the at-fault party generally handles the settlement negotiations. Parties may sometimes hire a mediator or arbitrator to assist with settlement negotiations.
What Are the Stages of the Negotiation Process?
The negotiation process is unique for each personal injury case. However, common stages in the personal injury negotiations process include:
Filing a Personal Injury Claim
After an accident or personal injury, your first priority is your health. Seek immediate medical treatment for your injuries. In addition to causing your injuries to worsen, delays in medical care could make it more difficult to obtain a fair settlement amount for your personal injury claim.
The claims process begins by filing a notice of claim with the party who caused your injuries. If the at-fault party has insurance coverage, they notify their insurance provider. An insurance company may sometimes contact you about the accident and your injuries.
The insurance company investigates your claim. An insurance adjuster will ask you questions about how the accident occurred and your injuries. Speaking with a Georgia personal injury lawyer before talking to an insurance company is best.
The company’s objective is to gather evidence proving its insured is not liable for your injuries. In other words, the insurance adjuster is trying to get you to say things that could be used against you when negotiating a settlement.
Reservation of Rights Letter
You may receive a Reservation of Rights Letter from the insurance company. The letter acknowledges your claim. The purpose of this letter is to inform you that the insurance policy may not cover your claim. The letter does not deny the claim, it merely informs you that the company is investigating your claim and reserves the right to deny your claim after it completes the investigation.
Maximum Medical Improvement (MMI)
Maximum medical improvement has a significant impact on the timeline for a personal injury claim. MMI is the point at which your doctor states you have recovered fully or no further medical treatment will improve your condition.
Until you reach MMI, your doctor is unsure whether you will sustain permanent impairments. A victim with permanent impairments may be entitled to additional damages. Therefore, settling a case before you reach MMI could mean receiving much less compensation for your damages.
Calculation of Damages
Damages are paid to the victim to compensate them for their physical injuries, financial losses, and emotional distress. Examples of the economic and non-economic damages in a Georgia personal injury case include:
- Past and future medical bills and expenses
- Mental anguish and emotional distress
- Lost wages and earning capacity
- Property damage
- Scarring and disfigurement
- Out-of-pocket expenses
- Rehabilitative therapy and care
- Impairments and disabilities
- Loss of enjoyment of life and quality of life
The value of damages depends on the facts of the case. The insurance company will pay as little as possible to settle your personal injury claim. Companies often undervalue claims, especially the portion for pain and suffering damages.
Before you accept a settlement offer from an insurance company, you may want to consult an attorney. If you sign a settlement agreement, you give up your right to file a lawsuit or pursue additional compensation for your case.
Settlement Demand Letter
A settlement demand letter outlines the facts of the case and demands compensation for damages. Your Georgia personal injury lawyer prepares the letter, which includes:
- The identity of the parties in the case
- A brief description of what happened that caused your injury
- Legal analysis explaining why the other party is liable for your damages
- A description of your injuries and impairments
- Details of the damages you sustained, including monetary losses, pain and suffering, and other damages
- A demand for payment in full of all damages you sustained
The insurance company reviews the settlement demand. It could take several weeks to receive a response. It could accept liability and pay the amount you claim. However, in many cases, the insurance company denies the claim or makes a counteroffer. If the company makes a counteroffer, your case moves forward through negotiations.
Acceptance of Settlement Offer or Personal Injury Lawsuit
If the parties in a personal injury dispute agree to settlement terms, the victim’s attorney prepares a settlement agreement. The settlement agreement outlines the facts of the case and the damages incurred by the victim. The alleged at-fault party does not accept fault for causing the injuries. Instead, they agree to pay a specific amount to resolve the dispute.
You should always have legal representation before signing a settlement agreement. The agreement contains a waiver of further liability or action. In other words, you give up your right to sue any known or unknown party for all damages related to the incident. Even if you are unaware of damages, you give up the right to seek them at a later date.
Contact a Georgia personal injury lawyer today for a free consultation to discuss your legal options.