Can a Lawsuit Be Reopened After Settlement?
When you’re hurt in a car accident due to a negligent driver, you can file a personal injury claim to recover your financial losses. Once the insurance companies conduct their review, you may be issued a personal injury settlement. You’ll sign a release for it, and the contract states you are agreeing to release their liability.
However, you may not have gotten the full value of your personal injury claim. You also may have taken steps to file a lawsuit that was resolved through a settlement agreement, only to find it isn’t enough to cover your damages. Many personal injury victims wonder, “Can a lawsuit be reopened after settlement?”
Unfortunately for most, there is usually no way to overturn lawsuit settlements. There may be some exceptions, though they are rare, and they require competent legal assistance through an experienced personal injury lawyer. Hedge Copeland, P.C., is a law firm that provides legal support for personal injury victims who have suffered in car accidents, slip and fall, wrongful death, and more.
In our personal injury blog posts, we provide more information to help you make informed decisions. This article answers the question, “Can a lawsuit be reopened after settlement,” while discussing the limited exceptions for pursuing additional compensation in your personal injury claim.
Understanding Personal Injury Lawsuit Settlements
If you have been hurt in an accident that someone else caused, such as a car crash, by engaging in negligent behavior, you are entitled to seek compensation through a personal injury claim. Before you open a personal injury case that is filed with the courts, you will negotiate for a fair settlement with the insurance company. They will provide an offer, and should you accept it, you will sign off on the settlement agreement.
By signing, you agree that you will not pursue further legal action. In a personal injury case that has started the lawsuit process with an official complaint filed in the court system, there are additional steps that include discovery prior to negotiations. If you choose to take the settlement, you sign the settlement agreement and collect the awarded compensation.
Unfortunately, many accident victims do these things without a personal injury lawyer. They won’t typically realize there is an issue when they recover compensation until they require additional medical treatment. An experienced personal injury lawyer will advise against settling a personal injury case until you reach maximum medical improvement. This is due to many injuries requiring the need for additional medical treatment.
Along with added medical bills, many victims don’t consider the impact of their injuries on their ability to work. This may cost them lost wages, plus there are intangible losses known as non-economic damages that can be sought in the settlement offer.
If you signed the settlement agreement, can your lawsuit be reopened? In general, once settlement terms and negotiations are accepted and signed through the release of liability contract, you can’t seek more compensation for the same claim. However, there are a few conditions that may grant an accident victim the chance to have a lawsuit reopened after settlement negotiations have been signed through the release clause.
Conditions Under Which a Lawsuit Can Be Reopened
Most victims can’t backtrack after signing the release of liability contract. This release clause specifically states that in exchange for the settlement, you cannot seek further compensation after signing the settlement agreement. If you think you have signed the release clause in error, there are limited circumstances that may allow you to get more money beyond the initial settlement offer.
However, you should know that obtaining further compensation is extremely rare once the settlement agreement has been made. If you want to have your lawsuit reopened after settlement, it is vital that you discuss your situation with an experienced attorney first. Most personal injury lawyers offer a free consultation, which you can use to learn more about when you could hold the insurance company and defendant responsible for further liability.
Fraud or Misrepresentation
If a settlement agreement was made in an unethical way, such as through fraud or misrepresentation, you may have the legal right to pursue further compensation to get a fair settlement.
Mutual Mistake
Mistakes by any of the parties involved can easily be made in settlement negotiations for an injury claim. If such an issue exists in your case, the courts will need to analyze the settlement offer. Based on their findings, they may reopen the accident case.
New Evidence
Gathering evidence is important for any case, but when new evidence comes to light, it may open the door to seeking further damages. It will depend on various factors involving the evidence, but an attorney may agree it is cause to seek more money.
Changes in Circumstances
Once your case is settled, if there are any changes in circumstances that arise, you may be able to have the case reopened. You might have new medical bills and medical expenses that require additional therapy, or you may have discovered property damage that requires additional car repairs. These new circumstances and the strength of your case may open up legal options to seek an additional settlement amount.
Filing a Second Personal Injury Claim Against a Second Defendant
One last exception may apply that could grant you the legal right to reopen the case. If you arrived at a fair settlement with the defendant and their insurance company and there is another at-fault party, you may be able to take legal action against the other party after resolving the first one.
Again, this is a rare occurrence, and most insurance companies will not settle unless you agree to resolve the claim with all at-fault parties. In your quest for fair compensation, one thing is clear – you should not hesitate to discuss what a fair settlement looks like with a personal injury attorney.
The Legal Process to Reopen a Settled Lawsuit
If you wish to reopen a lawsuit that has already been settled, it will require you to file a motion with the court. You would need to have proper grounds to do so, such as the issues listed above, along with the evidence to support these reasons to show that the original settlement provided by the insurance company was not reached in fairness.
Since there are many challenges with reopening lawsuits after settlements are reached, it is always best to pursue injury claims in the right way from the start using these steps:
Report the Accident
Whether you were in a motor vehicle accident, a slip and fall, or harmed in some other way, you must report the accident to the proper authorities. Auto accidents will require notifying the police, who will file a police report. Accidents caused by negligence on properties should be documented with an accident report, where the victim makes sure to get their own copy.
Gather Evidence
Your path to financial recovery from your injuries and damages will require evidence and documentation. Take photos and videos of injuries and property damage, and get witness statements that can help you hold the other party accountable for their actions.
Seek Immediate Medical Attention
In your injury claim, you will want to seek the full extent of your losses due to another person’s negligence. This can’t happen without proving they caused your injuries and damages. You may notice your injuries right away or you may think you’ve somehow escaped unscathed. Regardless, getting prompt medical care is best for your health and well-being. Make sure you do so right away to avoid having the insurance company try to deny your claim.
Discuss Your Accident with a Personal Injury Attorney
Take advantage of the free consultation that most lawyers offer as it can help you learn more about your legal options. Additionally, some state laws, such as the rule of contributory negligence, can cause you to be barred from collecting fair compensation. The insurance company may claim that you were 1% or more at fault for the accident, which would mean you get nothing.
You might think you’ll save money by handling your claim yourself. However, an attorney will know how to fully calculate your financial losses, including future damages, to get you what is fair. This requires understanding the nature and severity of your injuries, the cost of the care you need to receive to treat your injuries, whether these injuries will cause permanent impacts, the time you’ve missed from work, whether you can work again, and your quality of life, among many other aspects.
As such, it’s worth choosing a personal injury attorney to help you from the start of your claim. You’ll avoid settling for too little and you won’t have to deal with the hassle of having your case reopened, if the courts will even allow it. Additionally, most lawyers use a contingency-fee model, allowing you to get their representation without paying anything unless the case is settled or is awarded a winning verdict in court. This minimizes your risks and allows you to have an advocate committed to serving justice in your case.
Challenges and Considerations in Reopening Settlements
The state’s statute of limitations along with the signing of your settlement agreement will likely work against you, creating an uphill battle for reopening your case. It is seldom done, and only has success when there are strong legal arguments present for taking this step.
The court will need to evaluate this request and so will the other party and their insurer. Since insurance companies always look for the cheapest way out rather than paying what is fair, you should only take these steps with a reputable lawyer by your side.
Role of an Experienced Personal Injury Attorney in Settlement Agreement Reversal
It is imperative to understand that there are very limited scenarios in which a settlement agreement can be reversed. If any of the exceptions apply to your case, you should choose an attorney from a reputable law firm. Start with a free consultation to make sure they have this experience and learn more about what you can expect.
Ideally, you should make sure you start your personal injury case with the representation of an attorney. For many victims who have endured serious or catastrophic injuries, it is often impossible to get evidence in the aftermath. If you were rushed to the hospital, you would be missing this integral documentation of the accident.
That’s why getting a lawyer benefits you but even victims who did not need urgent treatment at the hospital can reap the rewards of representation. Attorneys are adept at putting all the evidence and documentation together to build a strong case that proves all four elements of negligence while negotiating for fair compensation.
Why You Need a Personal Injury Lawyer for a Personal Injury Lawsuit
If you filed an injury claim or proceeded with a lawsuit, if there is any chance for your case to be reopened, you’ll need an attorney who can appeal to the courts on the grounds for exemption. It will be a road paved with major challenges, even though it may result in a favorable outcome.
If you have been injured at the hands of a negligent person, the best time to take legal action is after seeking treatment for your injuries. Your attorney will be able to determine if the defendant owed you a duty of care, if they breached that duty, if their negligent actions from the breach caused your injuries, and calculate your damages. Get representation for your best interests by contacting Hedge Copeland, P.C. today.
