The Differences Between Verdicts and Settlements
In high-profile legal cases, the news may report that a person has been awarded a large amount of money because they suffered a serious injury or other losses due to the actions or negligence of another person or company. These cases may be reported as large verdicts awarding people with millions of dollars, or they may mention settlements that provide people with monetary compensation. Understanding the difference between verdicts and settlements can help clear up confusion about these legal matters.
In a civil lawsuit involving a personal injury or another situation in which a person suffered harm, the plaintiff will usually seek monetary compensation from the defendant. In some cases, a trial will be held that will end when the jury reaches a verdict. In others, the parties may agree on a settlement, allowing them to resolve their case without going to trial. Each of these outcomes may have certain benefits and drawbacks for the parties involved.
When a trial is held to determine the outcome of a lawsuit, the result may be a verdict that awards compensation to the plaintiff. The award that a plaintiff may receive through a favorable verdict may be higher than if they negotiate a settlement, since a jury may choose to award a high amount of compensation for damages such as pain and suffering, or it may require the defendant to pay punitive damages.
However, the outcome of a trial is not always certain. If the jury does not believe that the plaintiff made a good case for compensation, it may rule in favor of the defendant. This could lead to the plaintiff receiving nothing.
The time required to hold a trial and reach a verdict is likely to be longer. Depending on the complexity of a case, months or even years may be required before a verdict can be reached. A verdict may also be appealed, and the defendant may attempt to have the decision reversed or reduce the amount that they will be required to pay.
In many cases, both parties can benefit by working to create a settlement rather than holding a trial. Attorneys for both sides will negotiate to determine an appropriate amount that will be paid. Once a settlement has been reached, the defendant will pay the agreed amount of money to the plaintiff, and the case will be closed.
Settlements can often be reached in much less time than would be required to hold a trial. They can also provide greater certainty, since neither party will be able to challenge the decisions made in a settlement. They may also provide greater privacy for the parties by keeping the details of the case confidential. In some cases, a defendant may agree to pay a settlement without admitting any wrongdoing.
Settlements may also have some drawbacks. Because the parties will need to compromise as they reach agreements on how much will be paid, the amount that a plaintiff can receive may be lower than what they could have obtained by going to trial. If any additional injuries or damages are discovered after a settlement has been finalized, the plaintiff may no longer have the ability to address these concerns.
Because of the complex issues involved in personal injury and medical malpractice cases and other civil lawsuits, especially those that involve hundreds of thousands or millions of dollars, representation from a skilled and experienced attorney is essential. By working with an attorney, a plaintiff can make sure all factors in their case will be evaluated and that the compensation they receive will fully address the harm they have suffered.
A lawyer can help their client understand all the factors that may play a role in a case, and they can work to ensure that the case can be resolved successfully. Whether working to negotiate a settlement or preparing a case for trial, an attorney will help their client take the right steps to ensure that they can achieve the best possible outcome.
Jury Atlas provides information about major awards that plaintiffs receive through civil lawsuits. Learn more about how awards are calculated and the types of cases that may result in large awards. Contact us for more information.
