Colorado Personal Injury Lawyer Blog
The vast majority of personal injury claims – car accidents, slip and falls, workplace injuries – are resolved long before anyone steps foot in a courtroom. Settlement is the name of the game, a pragmatic and often efficient way for injured parties to receive compensation and for defendants (or their insurers) to mitigate risk and legal costs. But sometimes, despite everyone’s best efforts (or perhaps because of their worst), settlement remains elusive. The claim doesn’t just stall; it escalates, heading down the path to trial.
So, why does this happen? Why do some personal injury claims stubbornly refuse to settle, forcing both sides into the often costly, time-consuming, and unpredictable arena of court? It’s rarely a single reason, but rather a confluence of factors that can create an impasse. Understanding these roadblocks is crucial for anyone involved in a personal injury claim, whether as a claimant or a potential defendant.
The Unsettling Truth: Core Disagreements
At the heart of most failures to settle lie fundamental disagreements on key aspects of the claim. These often fall into a few key categories:
1. Liability Disputes: Who’s at Fault?
This is often the biggest hurdle. Settlement hinges on acknowledging fault. If the defendant, or more commonly their insurance company, refuses to accept responsibility for the incident, settlement becomes incredibly difficult. This can occur when:
Conflicting Accounts of Events: Witnesses disagree, police reports are inconclusive, or the parties themselves have drastically different versions of what happened. Think of a car accident where both drivers claim the other ran a red light.
Comparative Negligence Allegations: The defendant argues the injured party was partially or entirely responsible for their own injuries. For example, claiming a pedestrian was jaywalking and therefore contributed to their own injuries in a car accident.
Lack of Evidence: The injured victim might struggle to prove the defendant’s negligence. This can be an issue in slip and fall cases where the cause of the hazard is unclear, or in situations where key evidence is missing or destroyed. Modern jurors have an expectation that everything is recorded and they want to see footage of the event, even when none exists.
2. Damages Disputes: How Much is Enough?
Even if liability is conceded, disagreements over the value of the claim can often derail settlement. This often revolves around:
Severity of Injuries: Insurance companies may question the extent or nature of the injuries, especially “soft tissue” injuries like whiplash. They may scrutinize medical records, independent medical examinations (IMEs), and argue that pre-existing conditions are to blame.
Lost Wages and Future Earnings: Calculating lost income, both past and future, can be complex. Disputes can arise over the person’s earning capacity, the impact of the injury on their career trajectory, and the validity of their employment history.
Pain and Suffering: This is a subjective component of damages and often a major point of contention. Insurance companies tend to minimize pain and suffering awards, while victims understandably feel they deserve fair compensation for the disruption and discomfort their injuries have caused.
Medical Expenses: Disagreements can arise over the necessity or reasonableness of medical treatment. Insurance companies might question specific procedures, therapies, or the duration of treatment.
3. Unrealistic Expectations and Negotiating Standoffs
Sometimes, settlement falters not because of fundamental legal issues, but due to the negotiating positions adopted by either side:
Unrealistic Demands from the victim: An injured victim might have inflated expectations about the value of their claim, fueled by misinformation or emotional factors. If their demands are significantly higher than the defendant’s assessment, settlement becomes unlikely.
Low-Ball Offers from the Insurance Company: Conversely, insurance companies may offer settlements that are significantly lower than what is considered fair compensation, hoping to wear down the injured victim or force them to accept a meager offer. This tactic can backfire and push people towards litigation.
Principled Stance: In some cases, either side might take a principled stance, refusing to compromise on a particular point, even if it means going to trial. This could be about clearing one’s name, setting a precedent, or simply stubbornness. Sometimes this stance pays off, and sometimes it does not. The result often depends on the particular Jury that is seated on that day.
4. Tactical Considerations and Strategy
Sometimes, the decision to go to trial is a strategic move rather than a reflection of insurmountable disagreements:
Information Gathering: Litigation provides access to tools like depositions and document requests, which can uncover crucial information that might be hidden during informal settlement negotiations. A party might file suit simply to gain access to this discovery process. An example that we often encounter is when a person is injured inside a business and the business has video footage of the injury occurring. Rarely, if ever, will the business share this video with the injured victim or their attorney before litigation has commenced. Instead, the business, or their insurer, will simply deny the claim forcing the victim to file a lawsuit to access the video footage of their own injury.
Trial as Leverage: Filing a lawsuit and demonstrating a willingness to go to trial can be a powerful negotiating tactic. It signals seriousness and can push the other side to make a more reasonable settlement offer to avoid the risks and costs of trial.
Time Pressure and Deadlines: Filing a lawsuit establishes deadlines and timelines, which can sometimes force parties to move towards resolution faster than they might in informal negotiations.
The Inevitable Outcome: Trial and Uncertainty
When settlement fails, the claim inevitably proceeds to trial. This transition marks a significant shift. Trial brings with it:
Increased Costs: Legal fees, expert witness expenses, court filing fees, and other costs escalate dramatically.
Time Commitment: Preparing for and participating in a trial is incredibly time-consuming for both lawyers and clients.
Unpredictability: Trial outcomes are inherently uncertain. Judges and juries can be unpredictable, and even strong cases can have unexpected results.
Emotional Toll: The adversarial nature of litigation and the stress of trial can take a significant emotional toll on all parties involved.
Navigating the Path to Resolution
While settlement is most often the preferred outcome, understanding why claims go to trial is crucial. For injured victims, it emphasizes the need for realistic expectations, thorough documentation, and strong legal counsel. For potential defendants, it highlights the importance of fair evaluation and a willingness to engage in reasonable settlement negotiations.
Ultimately, the decision to settle or proceed to trial is a complex one, weighing risks, costs, and the potential for success. While most personal injury claims are resolved through agreement, recognizing the factors that lead to courtroom battles is essential for navigating this challenging legal landscape. It serves as a reminder that while settlement is the goal, sometimes, the path to justice leads through the courtroom doors.
If you would like to learn more about this process and the potential outcomes of your claim, please call the experienced personal injury attorneys at Cook, Bradford & Levy for a free consultation.