Why Do Lawyers Take So Long to Settle a Case?

To answer this question, we could simply cite that old saying that "good things come to those who wait." We all know that aphorism isn't always true all the time. But is true most of the time, especially in the personal injury settlement context.

Many personal injury claims, especially spine injury claims, involve future medical expenses. In a catastrophic spine injury claim, these expenses could be anywhere between $1 and $5 million. These figures don't count indirect economic damages, such as lost wages. If the settlement doesn't account for all these costs, the victim could be financially responsible for them in the future. A New York personal injury attorney only has one chance to get a settlement figure right. Since so much is at stake, you cannot afford for a lawyer to take chances.

Additionally, settlement delay often is not your lawyer's fault. Insurance companies delay the process as much as possible. Every day that settlement check sits in the insurance company's bank account, the company earns interest. Those nickles and dimes quickly add up to quarters and dollars. Usually, judges and their assistants are not in any hurry either. As long as a case settles, they don't care how long it takes. The process delays settlement as well. More on that below.

Most attorneys charge nothing upfront in these cases. So, the sooner your New York personal injury attorney settles a case, the sooner payday comes. In other words, in terms of delay, your lawyer is on your side. In a perfect world, personal injury claims would settle almost immediately, so victims could quickly get back to their lives. But we don't live in a perfect world. Instead, we must do the best we can with what we have.

Pre-Lawsuit Settlements

At first, many accidents appear straightforward. Frequently, a motorist hits Junior as he walks home from school or Grandma falls at a nursing home. In other words, one party clearly seems responsible for the incident. So, these cases should settle almost immediately, right?

True, if there are no serious questions about liability or damages, the insurance company usually has a legal duty to settle a claim within a few weeks. But even though many accident claims seem clear-cut, some insurance company defenses often apply, including:

• Partial Defenses: Contributory negligence shifts accident blame from the tortfeasor (negligent party) to the victim. For example, in the above examples, perhaps Junior didn't look both ways before he crossed the street or maybe Grandma wandered into a construction area. If these things are true, both parties could be partly responsible for the injury.
• Complete Defenses: Usually, comparative fault reduces the amount of compensation the victim receives. In some cases, however, a complete defense could apply. For example, maybe Junior ran into the street or maybe Grandma ignored a "Caution: Construction Area" warning sign. These defenses often don't hold up in court. But at this point, the insurance company just needs to cloud the issues.
• Lack of Evidence: This defense does not come up very often, mostly since the burden of proof in a civil claim (a preponderance of the evidence, or more likely than not) is so low. However, the motorist who struck Junior might flee the scene or there might be no witnesses to Grandma's fall. Legally, a New York personal injury attorney can usually still make these cases in court. But as mentioned, at this point, the insurance company just needs to create some uncertainty.

Furthermore, there could be issues regarding the amount of medical bills and other compensation. Typically, insurance companies apply one-size-fits-all rules. For example, if the victim stayed in the hospital two days, the victim needs two months of physical therapy, according to the insurance company. But such rules of thumb don't apply to everyone.

As a result, even a seemingly straightforward personal injury case usually doesn't settle immediately. That's especially true given the aforementioned financial issues regarding settlement. Simply put, the longer the insurance company delays, the more money it keeps.

Post-Lawsuit Settlements

To pressure the insurance company into settling, most New York personal injury attorneys almost immediately file legal actions if settlement negotiations stall. This move also protects the victim/plaintiff's legal rights. If the statute of limitations expires before the victim files suit, the victim loses all rights to compensation.

Generally, insurance companies file procedural motions asking the judge to throw the case out of court. Usually, these motions claim that there is no evidence to support the victim/plaintiff's claim. So, as long as attorneys have done their homework and collected evidence, these motions usually fail.

In contrast, if an attorney rushed to this point in an effort to speed things up, these motions might succeed. A judge might give a victim a chance to go back to the beginning and start over. Then again, maybe not.

Informal settlement negotiations usually continue as the case winds its way through the courts. Once discovery is complete, settlement negotiations often intensify. During discovery, both sides must put all their cards on the table, in terms of their claims and defenses. So, each side has a very good idea about the strength or weakness of the other side's case.

If informal negotiations break down again, most judges refer cases to mediation. A third-party mediator, who is usually an unaffiliated New York personal injury attorney, presides at a settlement conference.

Frequently, mediation succeeds even if informal settlement negotiations have failed. At mediation, both sides have a duty to negotiate in good faith. They must earnestly work to settle the claim, and they must be willing to make some compromises. If one side simply goes through the motions or assumes a "take it or leave it" posture, the judge will probably not be happy. Ad, this same judge will preside over the trial.

Most personal injury settlements include compensation for economics losses, such as medical bills, and noneconomic losses, such as pain and suffering.

Injury victims are usually entitled to substantial compensation. For a free consultation with an experienced personal injury attorney in New York, contact the Pianko Law Group, PLLC. Attorneys can connect accident victims with doctors, even of they have no insurance or money.