March 31, 2025
What Happens If a Personal Injury Settlement is Disputed?

What Happens If a Personal Injury Settlement is Disputed?

When an individual suffers a personal injury due to the negligence or intentional act of another party, they may seek legal recourse through a personal injury lawsuit. This process often culminates in a settlement, where the responsible party (or their insurance company) agrees to pay the injured person a certain amount of money as compensation for their injuries and damages. However, there can be instances where this settlement is disputed, leading to complications that could potentially prolong the resolution of the case.

Disputes over personal injury settlements typically arise when one or both parties disagree about either the liability (who was at fault) or damages (how much should be paid). For instance, an insurance company might argue that its policyholder wasn’t entirely at fault for causing an accident. Alternatively, it might contend that while its insured was indeed at fault, the claimant’s injuries aren’t as severe as claimed and therefore don’t warrant such a high payout.

If a dispute arises during negotiations before any formal agreement has been reached on a settlement amount, it will likely lead to further negotiation rounds between both parties’ legal representatives. If these negotiations fail to result in an acceptable agreement for both sides, then mediation or arbitration may be pursued as alternative dispute resolution methods.

Mediation involves engaging an impartial third-party mediator who facilitates discussions between disputing parties with the aim of helping them reach mutual consensus. Arbitration is somewhat similar but more formal; it involves presenting arguments and evidence before one or more arbitrators who then make binding decisions on how disputes should be resolved.

If none of these options work out and if no amicable solution can be reached even after extended negotiations and alternative dispute resolution attempts, then litigation becomes inevitable. The case would proceed to trial where each side presents their evidence before a judge or jury who ultimately decides on liability issues and appropriate compensation amounts based on presented facts.

However, going to trial can significantly increase costs for all involved parties due to attorney fees and other legal expenses. Moreover, it can be a lengthy process and there’s always the risk of losing the case or receiving less compensation than originally sought.

It’s important to note that once a settlement is agreed upon and signed by both parties, disputing it becomes far more difficult. Courts generally uphold these agreements unless there’s evidence of fraud, coercion, or grossly inadequate compensation.

In conclusion, disputes over personal injury settlements can complicate proceedings and potentially delay resolution. It’s crucial for injured individuals to have competent legal representation to navigate these complexities effectively and ensure they receive fair compensation for their injuries.

Munley Law Personal Injury Attorneys
606 Court St, Reading, PA 19601
16108314234

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