How Do Personal Injury Attorneys Negotiate Settlements?
After suffering an injury due to the negligence of another party, you may be entitled to compensation. However, this compensation cannot be simply handed over to you. To recover compensation, your attorney must negotiate with the at-fault party’s insurance company. Negotiating settlements is a vital aspect in personal injury cases. The purpose of settlement negotiations is to ensure you receive the full value of your case. So, how do personal injury attorneys negotiate settlements? Read on!
The Basics of How Personal Injury Lawyers Negotiate Settlements
At its core, negotiating a personal injury settlement involves the following steps;
- Gathering Evidence
Settlement negotiations usually begin before any formal legal action is taken. The attorney starts by gathering evidence to build a strong case. This includes medical records, photos of the accident scene, accident reports, documentation of lost income, and witness statements. Evidence in a personal injury case is critical for establishing liability and demonstrating the full extent of the client’s damages.
- Calculating Damages
Before initiating settlement negotiations, an attorney must determine how much a case is worth. Damages are calculated after the attorney has gathered all necessary evidence. This includes both economic damages, such as medical expenses and lost wages, and non-economic damages like pain and suffering. In some cases, these may consist of not only past damages, but also future damages, such as future medical expenses.
- Sending a Demand Letter
After an attorney understands the full value of a claim, they send a demand letter to the negligent party’s insurance company, outlining the losses suffered and the amount being sought. A demand letter also includes supporting documents and outlines the case’s facts.
- Responding to Counteroffers
If the insurance company rejects the initial demand and makes a counteroffer, an attorney will review the offer. Then, they will negotiate further or advise their client to accept the offer. In most cases, the insurance company’s initial counteroffer is lower than the case value. A case can go through several counteroffers before a settlement is reached.
Negotiating a settlement in a personal injury case is a back-and-forth process. An attorney will use the evidence they gathered and their experience to fight for a fair outcome. It may even be necessary for an attorney to threaten to go to court to secure a fair offer.
After both sides agree on a fair amount, the terms are put in writing and finalized. A settlement agreement means that the claimant will not pursue any further legal action or claim related to the incident against the defendant in exchange for the agreed compensation. This typically entails signing a release form that waives the right to sue the negligent party in the future for the same injury.
When negotiating a settlement, personal injury attorneys consider several factors to determine what constitutes a fair settlement, including the following;
- The severity of the injuries
- Strength of the evidence
- Comparative negligence
- Insurance policy limits
Contact Our Fort Lauderdale Personal Injury Attorneys
Our Fort Lauderdale personal injury attorneys at The Pendas Law Firm can help you negotiate for the compensation you deserve. Contact us today to schedule a consultation.
The Pendas Law Firm also represents clients in the Fort Myers, Ocala, Orlando, Tampa, Miami, Jacksonville, Daytona Beach, West Palm Beach, Bradenton, Naples, and Melbourne areas.
Source:
facs.org/advocacy/federal-legislation/liability/guide-to-liability-reform/ending-the-confusion/