If you suffer injury because of someone else’s negligence, be it in a car accident or at a commercial establishment, it might be possible to hold the person, business, or organization liable to pay for your damages. This can be in two ways: one is to file a personal injury claim, and the other is to file a lawsuit. Understanding the difference between personal injury claims and lawsuits is crucial to determine which might work better in your case.
How Personal Injury Claims Work
You may look at a personal injury claim as filing a legal demand to seek compensation for your injuries. You file this claim against the party you feel is liable for causing the accident that resulted in your injuries. While the other party might be at fault, the claim you file is typically with the other party’s insurance company.
Who Can You File a Claim Against?
If you meet with a slip and fall accident at a restaurant, you can file a premises liability claim with the restaurant’s insurance company. If the restaurant does not carry the required insurance, you may file a claim against the restaurant owner.
It is also possible to file a claim against a business, an organization, or a government agency if you feel it played a role in causing your injuries. For example, if you suffer injuries in a public transportation accident, it might be possible to file a claim against the agency in question.
When it comes to car accidents, New York’s no-fault system requires that you file a claim with your own car insurance company, which covers your medical expenses and lost wages. This is regardless of who is at fault for the accident. You may file a personal injury lawsuit against the at-fault driver only if you suffer “serious injury” as defined by the law.
How the Claims Process Unfolds
The claims process gets underway when your attorney sends a demand letter to the other party’s insurance company. This formal documentation details your damages and accounts for medical expenses, property damage, loss of earnings, and non-monetary damages (if applicable). For example, if you suffer from an animal attack, you would send the demand letter to the animal owner’s insurance company.
Once an insurance company receives a demand letter, it assigns an adjuster to the case. The role of the insurance adjuster is to review the evidence you present, determine if the company is liable to pay all or part of your damages, and arrive at a settlement account.
Given how insurance companies handle personal injury claims, it is rare for them to immediately agree to a claimant’s initial demands, and they do their best to minimize or eliminate their liability. As a result, you may expect an insurance company to offer a much lower settlement amount than you seek or deny your claim altogether.
Negotiations and Settlement
There is very little chance that an insurance company’s initial offer will meet the extent of your damages, and this is where negotiations enter the picture. Keep in mind that getting through this stage might involve multiple offers and counter-offers, so it’s best to get a personal injury attorney to handle this for you.
If you and the opposing party reach a settlement, ensure you get it on paper as quickly as possible. If the opposing party drafts the settlement agreement, make sure your attorney reviews it carefully. This is because arriving at a settlement is usually the end of a personal injury claim. If the opposing party fails to honor the agreement, you may sue it under contract law.
When Should You File a Lawsuit?
More often than not, filing a personal injury claim precedes filing a lawsuit. You should also know that a large chunk of personal injury cases end up in out-of-court settlements, with just four to five percent making their way to trial.
However, there are instances when filing a personal injury claim does not yield desired results. For example, an insurance company might deny your claim completely, leaving you with no other option than to file a lawsuit. There are other instances when filing a lawsuit might work well, too.
- You have more faith in the judicial system than insurance companies.
- You might receive higher compensation.
- The settlement offer you receive is very low.
- You are unable to resolve liability disputes with the other party.
- You might qualify to receive punitive damages.
- You are getting close to the statute of limitations.
Filing a Personal Injury Lawsuit
One of the key differences in the personal injury claim vs. lawsuit comparison is that a lawsuit unfolds in court. The process begins when you file a formal complaint, typically with the Supreme Court of New York, the state’s trial-level court for major civil cases. If the amount you seek does not exceed $50,000, you may file your lawsuit in the New York City Civil Court. The court notifies the opposing party of the complaint, to which it must respond.
What Happens After a Personal Injury Lawsuit Is Filed?
Depending on the specifics of a case and how all the parties approach the process, a personal injury lawsuit can take different paths.
- Pretrial. This includes the discovery stage, where both parties exchange evidence and other information. Other elements of a pretrial may include depositions, filing of motions, and mediation.
- Trial. If you don’t arrive at a pretrial settlement, the trial gets underway. This is where all the parties present their case. Once the deliberations are complete, a judge or jury arrives at a decision. If you win, the court also decides the compensation amount.
- Post-trial. If you feel the trial did not go your way owing to procedural mistakes or are unhappy with the verdict, you have the option of filing an appeal with the relevant appellate court. Remember that defendants can also file appeals.
Judge or Jury
The key difference between a claim and a lawsuit is that both parties arrive at an agreement at the end of the claims process, whereas a judge or jury decides the outcome in a lawsuit.
Most New York personal injury lawsuits tend to take the route of bench trials, with judges getting to pass verdicts. However, you and the opposing party may decide to opt for a jury trial, for which you need to file a demand notice and pay a fee. In this case, the trial commences once the jury is in place.
In jury trials, at least five of the six jurors need to be in consensus to pass a verdict. When passing the verdict, the jury also decides the compensation amount that the defendant has to pay. Then, the preceding judge issues the official judgment.
Statute of Limitations
The statute of limitations for most personal injury lawsuits in New York is three years. You might be able to get an extension if the discovery rule applies to your case or in instances of tolling. If you plan to file a lawsuit against a government agency, you need to begin by filing a claim with the agency in question within 90 days of the accident. If you don’t get a favorable resolution within 30 days, you get one year and 90 days from the date of the accident to file a lawsuit.
Personal Injury Claim vs. Lawsuit: Which Should You File?
If there is solid evidence to back your personal injury case and you have not suffered a serious injury, filing a claim might be the best way forward. Here are other instances when you might consider filing a personal injury claim.
- It is easy to establish liability.
- The insurance coverage is enough to cover your damages.
- You don’t foresee the insurance company creating problems.
- You want a speedy resolution.
- You wish to save on court fees.
The short answer to “Can a personal injury claim become a lawsuit?” is yes. Remember that while most personal injury cases start off as claims, and many end up in settlements without making it to court, you may think about filing a lawsuit under different circumstances.
- You have suffered a serious injury.
- The insurance coverage is inadequate to cover your damages.
- There is a dispute in establishing liability.
- An insurance company has denied your claim partially or completely.
- The case involves multiple parties.
- You want to put pressure on an insurance company.
- You are nearing the statute of limitations.
Conclusion
The benefits of settling a personal injury claim out of court include a speedy resolution, and you get to save on time and effort as well. However, there are instances when filing a lawsuit becomes the order of the day. In both scenarios, relying on the expertise of an experienced personal injury attorney is the best way forward. Besides, even if you begin by filing a claim, you may count on your attorney to determine when to escalate the matter and file a lawsuit.