When initiating a personal injury claim, it's customary and even advisable to ask for a large settlement – larger than what you expect to receive eventually. However, it should not be too large that it becomes unreasonable. If you are too greedy and insist on an unreasonable amount, the adjuster will reject your claim, and you will experience the following complications:
You Will Have To Litigate Your Case
Personal injury litigation isn't as great as many people think, especially if you opt for it instead of a reasonable settlement offer. Here are some of the dangers of litigation:
- It takes a long time – The average personal injury litigation takes place one to two years after the lawsuit is filed; are you willing to wait that long?
- It is costly – Don't be surprised if you lose between 45 and 60% of the settlement money; remember that you have to pay the lawyer's fee, case expenses, and expert witnesses, among other things.
You May Lose It All
Personal injury litigation is a multi-edged sword; you can win more or less money than the pre-injury settlement offer or even lose it all. This is because winning a case isn't guaranteed; many things can topple your case. For example, a key witness can die before the trial even begins, or a corrupt official can tamper with your evidence. Unfortunately, you won't get the pre-injury settlement offer (or any other money) from the insurance company or defendant if you lose the case. You will lose everything.
Paying the Defendant's Legal Fees
The government doesn't like those who are obstinate for nothing. Therefore, most states have measures in place to discourage people from being greedy and rejecting "reasonable" offers of settlement. Since what is reasonable to the insurer may not be reasonable to you, many states have determined that the reasonable amount is the one you eventually receive from the jury if your case ends in a trial.
Therefore, in many places, if you receive an amount that is approximately equal to the one you rejected, you are deemed to have rejected a reasonable amount. As such, you will be required to reimburse the defendant's legal costs since you made them incur the costs for no reason.
Therefore, calculate your damages so that you can ask for a reasonable amount. Don't insist on a million dollars if your damages are approximately a quarter of the figure. A personal injury lawyer from a firm like The Fitzpatrick Law Firm can help you understand the true value of your case.
