Understanding The Personal Injury Lawsuit Settlement Process In California

If you become injured in an accident in Manhattan Beach that happened due to the negligence of a person or business, California personal injury laws give you the right to seek compensation for the damages resulting from those injuries. These damages can include medical expenses, lost wages, pain, suffering, and more. However, in order to collect this compensation, you’ll need to either settle the case or file a personal injury lawsuit against the at-fault party.

Pursuing a personal injury lawsuit can be a challenge, especially if you aren’t familiar with the law. In this post, we’re going to take you step by step through the personal injury lawsuit settlement process in California.

Understanding the Settlement Process

A settlement is an agreement reached between the injured party and the defendant (or their insurance company) to resolve a personal injury claim without going to trial. This agreement typically involves the defendant paying compensation to the plaintiff in exchange for dropping the lawsuit. In most cases, the settlement agreement is negotiated between the defendant’s insurance company and the plaintiff’s lawyer.

The majority of personal injury lawsuits are settled out of court. Settling a case out of court offers benefits for both sides; it saves time, costs less money and provides for a more predictable outcome compared to a court verdict. How much you’ll collect depends on many factors, such as the extent of your injuries, the percentage of liability you share for the accident, the quality of your legal representation, and more.

In order to understand how a personal injury lawsuit is settled in California, we need to take a closer look at the process to learn how each step contributes to achieving a satisfactory settlement.

Step 1: Filing a Claim

Making a claim is the first step in the personal injury settlement process. This involves notifying the responsible party and their insurance company of your intention to seek compensation for your injuries. If you can’t settle the case and need to file a lawsuit, in most cases California’s statute of limitation law only gives you two years from the date of your injury in which to file a claim. You should consult a lawyer regarding the statute of limitations because there are exceptions to the general two-year rule and you can lose the right to file a lawsuit if you do not comply with the applicable statute of limitations.

Step 2: Investigating and Collecting Evidence

Once the claim is made, the investigation phase begins. This stage involves collecting the evidence (medical records, police reports, photos, witness statements, etc.) needed to support your case. The more evidence you have to support your claim, the better your chances of obtaining full compensation for your accident-related damages.

Step 3: The Demand Letter

Once the investigation has been completed, your attorney will draft a document called a demand letter. The demand letter outlines the details of your claim (such as the severity of your injuries and the financial losses incurred) and the amount of compensation you are seeking to settle the case. If the defendant’s insurance company refuses to pay the settlement amount asked for in the demand letter, the case proceeds to the next step: negotiations.

Step 4: Negotiations

Negotiations are one of the most critical phases of the personal injury lawsuit settlement process. Both parties will discuss the terms of the settlement, often going back and forth with offers and counteroffers. Since most insurance companies are looking to minimize any pay out, the representation of an experienced Manhattan Beach personal injury lawyer who knows how to settle a accident claim can be invaluable in negotiating a fair settlement that adequately covers your damages.

Step 5: The Settlement Agreement

If both parties are able to reach an agreement, the terms of the settlement are put into writing in a settlement agreement. This document outlines the amount of compensation to be paid and any other conditions of the settlement. Once both parties sign the agreement, it becomes a legally binding contract.

If no settlement agreement is reached, then your lawsuit will proceed to trial.

Step 6: Receive Your Settlement

The final step in the process is receiving your settlement payment. This usually occurs within a few weeks of signing the settlement agreement. Payment is typically made in a lump sum, although structured settlements are also an option. Your attorney will ensure that all legal and administrative aspects are handled smoothly, so you receive your compensation promptly.

Factors That Can Affect the Amount of Compensation You Can Collect

During the negotiations process, there are many factors that can influence the amount of compensation you can collect in a personal injury settlement:

Legal Considerations In California

California has specific laws that apply to personal injury litigation that can affect your case. Some of the legal considerations to be aware of include:

• Comparative Negligence: California follows a “pure comparative negligence” rule, which means the amount of compensation you can collect can be reduced by your percentage of fault you shared in the accident.
• Statute of Limitations: As mentioned earlier, you generally have two years from the date of the injury to file a personal injury lawsuit.  You should consult a lawyer regarding the statute of limitations because there are exceptions to the general two-year rule and you can lose the right to file a lawsuit if you do not comply with the applicable statute of limitations.
• Damage Caps: While California does not impose caps on most personal injury damages, it does limit non-economic damages in medical malpractice cases.

The Role of a Personal Injury Lawyer

You aren’t required by law to hire a lawyer in order to file a personal injury lawsuit. However, hiring a personal injury lawyer can significantly improve your chances of obtaining a fair settlement. An experienced attorney understands the intricacies of California’s personal injury lawsuit settlement process and can effectively negotiate with insurance companies on your behalf. They’ll be able to handle all the legal aspects of your case, allowing you to focus on recovering from your injuries.

Speak to a Personal Injury Lawyer in Manhattan Beach Today

If you’ve been injured in an accident in the Manhattan Beach/South Bay area, contact the Law Offices of Scott Dinsmore, APC without delay. The sooner we get to work getting your settlement, the better the outcome in most cases. Let us navigate the complexities of California’s personal injury lawsuit settlement process on your behalf.

Call us at (310) 318-1220 or contact us online to schedule a free initial consultation to discuss your case with an experienced personal injury attorney in Manhattan Beach.