When to Consider Litigation Instead of Accepting a Settlement
Car accidents can leave victims with life-changing injuries, significant medical bills, and lost income. After a collision, many injury victims receive settlement offers from insurance companies seeking to close the case quickly. While some settlements are fair, others fall short of covering the full extent of the damages suffered.
We understand the importance of protecting your rights and ensuring you receive the monetary compensation your case deserves. There are situations where filing a lawsuit may be the best course of action rather than accepting a settlement. As experienced Detroit car accident lawyers, we can help you evaluate whether litigation is necessary for your situation. Michigan and federal car accident laws provide protections for injury victims, and understanding when to litigate is essential for securing justice.
What Is A Settlement, And When Is It Offered?
A settlement is a financial offer made by the insurance company or the at-fault party to resolve a legal claim without going to court. Insurance adjusters often present settlements shortly after a claim is filed. These offers may seem reasonable at first but often fail to account for long-term medical care, ongoing pain and suffering, and other damages that become apparent over time.
Under Michigan’s no-fault insurance laws (MCL 500.3101 et seq.), drivers are entitled to personal injury protection (PIP) benefits after an accident, regardless of fault. However, pursuing compensation beyond PIP coverage may require litigation when the damages exceed policy limits or involve non-economic damages like pain and suffering.
When To Reject A Settlement Offer And Consider Litigation
Litigation becomes necessary when a settlement offer fails to cover your damages adequately.
Some situations that may require legal action include:
- Insufficient Compensation – If the settlement does not cover medical bills, lost wages, and pain and suffering, it may be necessary to pursue a lawsuit to seek full compensation.
- Disputed Liability – When the at-fault party denies responsibility or disputes the extent of their negligence, litigation may be required to prove fault under Michigan’s comparative negligence laws (MCL 600.2959).
- Severe Or Permanent Injuries – Serious injuries often result in long-term care needs. If the settlement fails to account for ongoing medical treatment, you may need to file a lawsuit for fair compensation.
- Bad Faith Insurance Practices – If the insurance company refuses to negotiate fairly or delays payment without valid reasons, filing a lawsuit may be the only way to protect your rights under Michigan’s Uniform Trade Practices Act (MCL 500.2006).
Benefits Of Pursuing Litigation Over Accepting A Settlement
While litigation can take longer than accepting a settlement, it offers several advantages for injury victims seeking justice:
- Full Compensation – Courts can award damages that reflect both economic and non-economic losses, including emotional distress and loss of enjoyment of life.
- Accountability – Holding negligent drivers or corporations accountable can help prevent similar accidents in the future.
- Legal Protection – A lawsuit provides a structured process where evidence can be presented, and decisions are based on facts rather than the insurance company’s bottom line.
Key Considerations Before Filing A Lawsuit
While litigation can be effective, it’s important to consider the following factors before moving forward:
- Time Limits – Michigan has a three-year statute of limitations for personal injury claims under MCL 600.5805. Failing to file within this time frame can bar you from seeking compensation.
- Evidence Availability – Strong evidence, such as police reports, medical records, and eyewitness statements, is essential for a successful case.
- Legal Costs – While we work on a contingency fee basis, meaning we only get paid if you win, litigation can involve court fees and expert witness costs.
Steps To Take If You Are Considering Litigation
If you are unsure whether to accept a settlement or pursue litigation, follow these steps:
- Consult An Attorney – A skilled Detroit car accident lawyer can evaluate your case and help you understand your options.
- Preserve Evidence – Collect medical records, accident reports, and witness statements.
- Document Losses – Keep track of all expenses, including medical bills, lost wages, and other damages.
- Avoid Speaking To Insurance Adjusters – Statements made to insurance companies can be used against you. Let your attorney handle communications.
FAQs About When To Consider Litigation Instead Of Accepting A Settlement
What Are The Risks Of Accepting A Settlement Without Consulting A Lawyer?
Accepting a settlement without legal guidance can result in receiving far less than you deserve. Insurance companies often make low initial offers that fail to cover the full extent of medical bills, lost wages, and pain and suffering. Once a settlement is accepted, you typically forfeit the right to seek further compensation, even if new injuries arise. A personal injury attorney can assess the fairness of the offer and negotiate for maximum compensation.
How Do I Know If A Settlement Offer Is Fair?
A fair settlement should cover both your current and future damages. This includes medical expenses, lost income, ongoing care, pain and suffering, and other accident-related losses. Reviewing the offer with a Michigan car accident lawyer ensures that all aspects of your damages are considered. If the offer falls short, litigation may be necessary to seek full compensation.
When Should I File A Lawsuit Instead Of Accepting A Settlement?
Filing a lawsuit may be necessary when the settlement offer is unreasonably low, liability is disputed, or the insurance company acts in bad faith. Additionally, if you have suffered serious injuries requiring long-term care or the insurance company refuses to negotiate in good faith, litigation can be the best way to protect your interests. Michigan’s comparative negligence laws and no-fault statutes often influence when legal action becomes necessary.
How Long Do I Have To File A Lawsuit After A Car Accident In Michigan?
Michigan law sets a three-year statute of limitations for personal injury claims under MCL 600.5805. This means you must file a lawsuit within three years of the accident date. However, certain exceptions may apply, such as cases involving minors or delayed discovery of injuries. Consulting a car accident lawyer can help ensure you meet all deadlines.
What Happens If I Reject A Settlement Offer?
Rejecting a settlement offer does not mean you lose your right to compensation. Instead, your attorney can either renegotiate for a better offer or prepare to take the case to court. If the insurance company fails to offer a reasonable settlement, filing a lawsuit may be necessary to pursue full and fair compensation for your losses.
How Can A Lawyer Help If I Decide To Pursue Litigation?
A car accident lawyer can handle all aspects of your case, including filing the lawsuit, collecting evidence, negotiating with the insurance company, and representing you in court. Legal representation ensures that your rights are protected and maximizes your chances of receiving full compensation for your injuries.
Contact Our Detroit Auto Accident Lawyers For Your Free Consultation
If you or a family member have been injured in a traffic accident and are unsure whether to accept a settlement or pursue litigation, the experienced attorneys at Ravid & Associates, P.C. can help you make an informed decision. We are dedicated to fighting for the rights of injury victims and ensuring you receive the full compensation you deserve under Michigan law.
Contact Ravid & Associates, P.C. today to discuss your car accident case with an experienced Detroit car accident lawyer. We represent clients in Detroit and throughout the entire state of Michigan from our office locations in Southfield, Michigan. Contact our Detroit auto accident attorneys at Ravid & Associates, P.C. today by calling (248) 948-9696 to receive your free consultation. Let us protect your rights and fight for the compensation your case deserves.
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