Suppose you’ve been injured in an accident in Encino, CA. In that case, you might be wondering about your options for seeking compensation.
Two terms you’re likely to encounter are “claim” and “lawsuit.” While they may seem similar, they are distinct processes in personal injury law. It is helpful to know the differences, and doing so helps you understand the best path for your situation.
What Is a Personal Injury Claim?
A personal injury claim is a formal request for compensation made to an insurance company. This process typically involves negotiating with the insurance company of the person who caused your injury or, in some cases, your insurance company. The claims process generally involves various steps.
Filing a Claim
You or your lawyer will file a claim with the insurance company. This includes providing details about the accident and documentation of any injuries or damages you sustained.
Investigating the Claim
The insurance company will conduct its investigation. This may involve reviewing medical records, examining police reports, and speaking with involved parties and witnesses.
Settlement Negotiations
The insurance company may offer a settlement once the investigation is complete. This amount is intended to compensate you for your injuries and related costs. Your lawyer can negotiate on your behalf to ensure the settlement is fair.
Accepting or Rejecting the Settlement Offer
You can accept the settlement if it’s satisfactory. If it’s inadequate, negotiation continues, or you may consider pursuing a lawsuit.
The benefit of settling a claim is that it can be resolved relatively quickly compared to a lawsuit, often taking only a few months. It can also be less adversarial because you’re working with the insurance company rather than going through a court battle.
When a Lawsuit Becomes Necessary
If settlement negotiations fail or the insurance company disputes the claim, you might need to file a lawsuit. A lawsuit is a legal action taken in court to resolve the issue. The lawsuit process involves taking crucial steps:
Filing a Complaint
The first step is for your lawyer to file a complaint in court. This document outlines your case, the damages you seek, and why the other party is responsible.
Discovery Phase
Both sides gather evidence through a process known as discovery. This includes exchanging documents, answering written questions (interrogatories), and taking depositions from witnesses and experts.
Pre-trial Motions and Conferences
Lawyers for both sides may file pre-trial motions to decide what evidence can be used. There may also be conferences to explore settling the case before trial.
Trial
If the case doesn’t settle, it proceeds to trial. Both sides present their evidence to a judge or jury, who will then decide on liability and damages.
Appeal
If either party is unhappy with the trial outcome, they may appeal the decision, which involves asking a higher court to review the case.
Differences Between Claims and Lawsuits
There are several key differences between personal injury claims and lawsuits:
- Complexity and Duration: Claims are generally more straightforward and quicker to resolve. Lawsuits, however, are complex and can take a year or more to reach a conclusion.
Cost: Claims typically involve fewer legal fees and expenses than lawsuits. In a lawsuit, costs can add up due to court fees and expert testimony.
Control and Outcome: Settling a claim allows you more control over the outcome. In a lawsuit, you’re subject to the decision of a judge or jury.
Adversarial Nature: Claims involve negotiation directly with an insurance company, while lawsuits are more adversarial as they involve formal litigation and court proceedings.
Choosing the Right Path for Your Situation
Deciding whether to pursue a claim or a lawsuit depends on several factors:
Strength of Evidence
Consider how strong your evidence is. A claim may be sufficient if liability is clear and your injuries are well-documented. However, a lawsuit might be necessary if there are disputes over who is at fault.
Severity of Injuries and Damages
The more severe the injury and higher the damages, the more likely a lawsuit might be needed to receive fair compensation.
Insurance Company’s Settlement Offer
If the insurer offers a fair settlement, accepting a claim might be the best option. Conversely, consider filing a lawsuit if their offer is low.
Statute of Limitations
California law requires you to file a personal injury lawsuit within two years of the accident. It’s crucial to act promptly to preserve your legal rights.
A Personal Injury Lawyer Can Help You File a Claim or Lawsuit
Whether you pursue a claim or file a lawsuit, it’s crucial to understand the differences and evaluate the best strategy for your situation. While claims can be quicker and less complex, lawsuits are sometimes necessary to achieve fair compensation. If you’ve been injured in Encino, CA, consider consulting with an experienced personal injury lawyer who can guide you through the process and advocate for your best interests.
Contact an experienced Encino personal injury lawyer at JUSTICENTER Personal Injury Lawyers to discuss options for pursuing compensation. Contact us today at 833-852-3600 for a free consultation.
