In the world of personal injury law, settlements are far more common than courtroom trials. If you’ve ever wondered why, you’re not alone.
The vast majority of personal injury cases in Austin, Texas or elsewhere in the United States, including those involving car accidents, slip-and-falls, or pedestrian injuries, settle before they ever see the inside of a courtroom.
While estimates vary, many personal injury attorneys in the US believe that more than 90% of cases resolve through settlement.
But why?
To answer this, it’s important to understand the process that unfolds after a motor vehicle accident or other personal injury occurs.
Let’s take a closer look at the reasons most cases settle, focusing on the legal landscape in Austin, Texas, and the role of lawyers, insurance companies, and the courts.
The Settlement Process: How It Starts
To understand the process better, let’s assume (God forbid) that you’re involved in a car accident on a busy Austin street. The aftermath can be overwhelming — seeking medical attention at Seton Medical Center or St. David’s Medical Center, dealing with vehicle damage, and contacting insurance companies. Once the dust settles, many victims reach out to an Austin car accident lawyer or an experienced personal injury attorney to help walk the complex legal path ahead.
When injuries are minor and the facts are clear, the case can sometimes be resolved quickly. A lawyer gathers medical records, Austin Police Department accident reports, and other documentation. They send what’s called a “settlement package” to the insurance company, often including a demand for compensation.
At this point, insurance companies like State Farm, Progressive, or GEICO evaluate the claim. If liability is clear, they may offer to settle quickly to avoid the costs of litigation. In some cases, a settlement may happen within four to six months. For example, if someone sustains a mild whiplash injury, it’s often easier to negotiate a fair payout without lengthy back-and-forth.
Why Cases Drag On: The Lawsuit Stage
However, not all cases are straightforward. If the settlement package is rejected or the insurance company disputes liability or damages, the attorney may file a lawsuit. Filing a lawsuit in Austin might mean initiating proceedings, for example, in Travis County Courts or the Austin Municipal Court. This is where things become more complex.
Once an Austin personal injury lawsuit begins, both sides engage in a process called discovery. During discovery:
- Lawyers exchange documents, including medical records and accident reports.
- Witnesses provide statements that help reconstruct the event.
- Domain specialists, like an accident reconstruction expert, may be brought in to analyze the details.
The insurance company’s lawyers will most likely scrutinize every detail. For instance, if you claim severe back injuries requiring surgery, but had prior treatment with a chiropractor, those records will be reviewed. The defense may argue that your injury wasn’t caused by the accident.
Attorneys also conduct depositions during discovery. In a deposition, you provide sworn testimony, answering questions about the accident, your injuries, and how the incident has affected your life. If the defense finds inconsistencies or weaknesses, they may challenge your credibility.
Why Settlements Make Sense for Both Sides
By the time a case reaches the later stages of litigation, both sides know a lot. The plaintiff’s auto accident law firm knows the extent of the injuries and how they impact the victim’s life. The insurance company knows the risks of going to trial.
Here’s why settlements often make sense:
- Predictability: Trials are unpredictable. Even with strong evidence, juries can deliver surprising verdicts. Settling avoids this risk.
- Cost Savings: Personal injury trials in Texas or anywhere else for that matter, are expensive. Lawyers must pay for medical experts, accident reconstruction specialists, and other witnesses to testify. These costs can reduce the net compensation a victim receives.
- Time: In some personal injury lawsuits, trials can take years. A settlement often provides quicker closure and compensation for victims who need funds for medical bills, lost wages, and other expenses.
- Insurance Policy Limits: If the at-fault driver’s liability insurance policy has a cap (e.g., $100,000), and your injuries clearly warrant the full amount, the insurance company may offer the policy limit to resolve the case.
For instance, consider a pedestrian hit in Downtown Austin. If the victim sustains a severe leg fracture requiring surgery, a pedestrian accident attorney in Austin might argue that the case is worth $100,000. If the insurance policy maxes out at that amount, a trial would add unnecessary costs without increasing the payout.
When Cases Go to Trial
While most cases settle, some do proceed to trial. This typically happens when:
- Liability Is Disputed: If the insurance company believes the victim caused the accident (e.g., running a red light), they may refuse to settle.
- Severe Injuries and High Damages: Cases involving catastrophic injuries, such as traumatic brain injuries, may warrant multimillion-dollar compensation. If the insurance company refuses to pay fair value, a jury must decide.
- Credibility Concerns: If the insurer believes a victim is exaggerating injuries, they may challenge the claim in court.
Trials are most common in cases with substantial insurance policies or complex liability issues. For example, in a Texas motor vehicle accident involving multiple cars, determining fault might require detailed evidence and expert testimony.
The Role of Texas Laws in Settlements
Texas law also shapes the settlement process. For example:
- Texas Comparative Negligence Laws: If you are partially at fault for an accident, your compensation may be reduced. For instance, if you’re found 20% responsible, you’d receive 80% of the total damages.
- Texas Statute of Limitations for Personal Injury: Victims have two years from the accident date to file a lawsuit. Missing this deadline means forfeiting the right to compensation.
Understanding these laws helps personal injury attorneys negotiate fair settlements based on realistic outcomes.
Final Words: Settlements Provide Closure
Most personal injury cases in Austin, Texas, settle because the process allows both sides to reach a fair, predictable resolution. Yes, there may be some exceptions. But, for victims, faster settlements provide faster access to compensation for medical bills reimbursement, lost wages compensation, and pain and suffering damages. For insurance companies, settling minimizes costs and risks.
If you’ve been injured in a motor vehicle accident or another incident in Austin, Texas, consulting a local personal injury attorney can help you use the the legal system to your advantage. Whether you’re seeking representation after a car crash or need guidance on bodily injury claims, experienced lawyers can advocate for the settlement you deserve.
At the end of the day, settlements reflect the knowledge gained throughout the legal process. With clear facts, strong evidence, and fair negotiations, both sides often find it better to settle than to face the uncertainty of a trial.