Can You File a Lawsuit After an Auto Accident Settlement?

Depending on its terms, an auto accident settlement may prevent you from subsequently filing a lawsuit.  Settlements are designed to prevent cases from escalating to the point of where they are litigated, but many times an entire case cannot be settled out of court. Below is a description of the times when it may be possible and when it may not be possible to litigate a case after accepting a settlement offer.

When the Settlement Only Partially Affects a Claim

Many times, a settlement offer will be for only one aspect of a claim. For example, a settlement could be for funds to fix the damage to a party’s car, but not be for any part of the medical bills for any physical injury resulting from the accident. Because of the difficulty of settling all claims at once, many offers will be accepted for only part of the entire claims for an accident. A claim not covered by an accepted settlement offer can still be litigated in court.

When the Terms Permit

Sometimes, a settlement offer will state that the injured party retains the right to subsequently sue for further damages. In this case, the party would be able to file a court case even though he or she has accepted money for her damages. The offer can be for physical injury and/or damages, but must clearly state that the injured party can sue in the future for additional or yet-unresolved amounts due.

When the Settlement Prohibits

Many settlements contain a paragraph, sentences or at the very least a few words to the effect that acceptance of the offer finalizes the claim. This means that the injured party has no other recourse other than the amount of money provided in the settlement. No appeals, subsequent settlement requests or court cases may be filed. If they are, they will be thrown out of court or rejected.

When You Make the Promise

Sometimes, it might be in the injured party’s best interest to state that an accepted settlement offer effectively terminates the ability to file a court case. Often, this sentence can induce an insurance company to make a larger or more reasonable settlement offer because it shows that the injured party is not litigious or merely out for money.

This promise, however, can also be extended to include the insurance company. Therefore, every party would be bound by the settlement terms and have no recourse even if later more expenses were incurred or the company thought too much money had been paid.

Getting Legal Help

Settlement offers can end a party’s ability to seek additional funds or other assistance through court action. Because of this, it is important that a party injured in an auto accident that has been offered a settlement contact an attorney for legal representation. An attorney will detail whether the settlement terms are acceptable and in the party’s best interest.