Last updated on October 31st, 2025 at 10:42 am
When you think about lawsuits, you may think about going to court with a lawyer and arguing a case before a judge and jury. However, most personal injury lawsuit settlements happen outside of court for reasons we will examine more closely below.
What Is a Personal Injury Lawsuit Settlement?
A settlement is an agreement to resolve a lawsuit outside of court. In a personal injury case, the agreement is between the injured person and the insurance company for the party whose negligence caused the accident.
For example, if you were injured in a car accident in Maine where you were less than 50% at fault, you may be entitled to substantial financial compensation. (This could mean that the other driver was 51% or more responsible for the accident, or that the other driver and another factor beside yourself, put together, were more than 51% responsible.) A personal injury lawsuit settlement in a car accident case involves you and the other driver’s insurance company agreeing to the amount of money the insurance company will pay you as compensation.
What Is a Court Award?
A personal injury court award is a final judgment or decision from a court on how much money the negligent party must pay the injured person. A jury or, sometimes a judge, will make that decision. Unlike a personal injury settlement, when you receive a jury award or court judgment, there doesn’t have to be any agreement between the parties. Instead, the parties comply with the award and judgment.
Advantages of a Court Award
Although most personal injury cases are settled, some cases go to court. Going to court may be:
- Necessary if the negligent party’s insurance company refuses to agree to a fair settlement amount.
- A good option if your injuries are severe and life-changing.
A court award could be higher than a settlement in some circumstances (though it could also be lower.
Advantages of Settling a Personal Injury Lawsuit
There are several advantages to settling a case. Settling involves less time, stress, risk, and cost than going to court and provides more privacy:
- If you go to court, resolving your case will take substantially longer than settling with the insurance company before trial. That means you will have to wait longer to receive your compensation payment.
- Court cases can be stressful.
- When you agree to a settlement, it’s a sure thing. If you go to court, there’s a risk. You might get more money than you would have received in a settlement but also less. You might even lose your case and get nothing.
- Expenses for going to court are higher than for settling. While your attorney is absorbing those costs for now, they will ultimately come out of your pocket after verdict or settlement.
- What happens in court is public information. You may not want to reveal sensitive medical information. A settlement is private.
You should never rush into a settlement without consulting an experienced personal injury lawyer. Insurance companies offer unfairly low settlement amounts to injured people trying to negotiate independently without a lawyer to represent them. Having an experienced lawyer by your side makes a big difference.
Should You Seek a Court Award or a Personal Injury Lawsuit Settlement?
Although there are many advantages to seeking a personal injury lawsuit settlement, and most cases do settle, sometimes going to court could be your best option. A lot depends on how the accident happened, how severe your injuries are, how your injuries are expected to affect you in the future, and your personal preferences about whether you want to go to trial. A seasoned attorney, like those here at Garmey Law, will be able to estimate how much more it would ultimately cost you to see your case through trial, and help you evaluate whether doing so is worth the risk and additional cost. If you choose to work with the Garmey Law personal injury team, we will carefully evaluate your case and advise you of your best options based on our experience helping accident victims get the fair compensation they deserve. Call us at (207) 481-4683, or contact us through our website for a free consultation.