Arizona Settlements Vs. Trials: What You Need to Know

Getting the compensation you deserve after suffering a personal injury due to someone else’s actions may require a jury trial. That might not be the quickest or easiest way to recover money in your personal injury case, but it’s good to be prepared for all scenarios in order to obtain justice.

The good news is that you might get what you need with an Arizona settlement. But how do you know whether you should pursue a settlement or take your case to trial? It’s a tough question to answer without an attorney, but this post will give some context to help you make a more informed decision. A qualified personal injury attorney is still your greatest asset, so don’t hesitate to reach out to Thompson Law for skillful legal guidance.

What Is a Settlement?

A settlement relating to personal injury (and most civil) cases is an out-of-court agreement by both sides to either end current litigation or prevent future litigation. The claimant (person who has suffered damages) usually receives money in exchange for agreeing not to file a lawsuit. Other conditions may apply to settlements; a common one involves the claimant agreeing not to disclose the amount of money they received. Settlements will also allow a defendant to represent that it denies liability, notwithstanding that a settlement payment is being made.

Claimants in personal injury cases may seek compensation for:

• Medical bills and other healthcare-related expenses
• Lost wages
• Property damage
• Diminished earning capacity
• Pain and suffering
• Loss of companionship
• Disfigurement and scarring

How Do Trials Work in Arizona?

Personal injury trials represent a fraction of the time claimants and their attorneys spend on the case. Before the first court appearance, the two sides have likely communicated extensively—mostly about reaching a settlement. Attorneys sometimes bring in mediators to help reach an agreement and save time and money associated with a trial.

Suppose that fails. The alleged wrongdoer either outright rejects the claimant’s settlement offer or won’t budge from a lowball counteroffer. In that case, it’s probably time to file a lawsuit.

1. The first step in filing a lawsuit is identifying the appropriate court or legal venue and submitting the necessary paperwork. The wrongdoer—now a defendant—needs to be served with a court summons and complaint.
2. After the legal process kicks off, attorneys for both sides start the discovery phase. Discovery is the process of exchanging relevant information with the other side. In discovery, each side can serve written interrogatories (questions) and deposition notices (for oral testimony) to the other side.
3. Attorneys make various pre-trial motions, such as the request to include or rule out certain evidence.
4. A judge sets a trial date, then, during the trial, parties may offer up written testimony, call experts to the stand, or show evidence they believe supports their side.
5. Both sides may continue negotiations during any stage of the legal process. Plenty of personal injury cases settle right in the middle of the trial.
6. The last step in a trial is hearing the judge’s or jury’s verdict. After the verdict, you and your attorney can discuss whether or not you want to appeal an unfavorable judgment.

How Much Can I Get in a Personal Injury Settlement or Trial?

The amount Arizonans obtain for their personal injury case, either in a settlement or trial, varies wildly. It’s nearly impossible to pin down a reliable average for these cases, as numerous factors can impact the compensation any given claimant or plaintiff deserves.

If you want a rough estimate of how much you might collect in a settlement, consider that some cases settle in the thousands, while others can even go up to seven figures. We understand that range is quite large, which makes it crucial to have an experienced legal team on your side.

Trials often involve especially complex personal injury cases where a large amount of money is at stake. A typical judgment in an Arizona trial can reach well into the six-figure range.

Factors That Affect Your Settlement Amount

Below is a list of just some of the conditions that can impact the amount a defendant and their legal team are willing to offer in a settlement:

• The extent of the victim’s injuries
• The medical care (past and future) needed for recovery or to reach maximum medical improvement (MMI)
• Limits on relevant insurance policies
• The extent to which the victim’s injuries decrease their future earning capacity
• How much fault, if any, the victim bears for the accident or incident
• Pre-existing medical conditions
• The amount of evidence the victim is able to collect, such as medical records and proof of injuries

When to Settle and When to Try a Personal Injury Case

Deciding the best path forward for your Arizona personal injury case necessitates input from an experienced and proven attorney. Your attorney may point to the following factors when advising you which way they feel is most likely to result in success.

Pros of Settlements

Some of the advantages of settling your personal injury case are:

• Quicker resolution of the matter—which means you’ll get money faster.
• Lower overall legal costs relative to a trial.
• Not having to relive the accident or incident in court.
• Not being forced to rely on a judge or jury to decide in your favor; settlements provide certainty for victims.

Cons of Settlements

Conversely, you might not want to go the settlement route because:

• You might not get as much as you would in a trial.
• The full extent of your injuries and financial needs might not become clear until some time after the settlement.
• The defendant might not receive the negative attention you feel they deserve.

How Much Can a Lawyer Take from a Settlement in Arizona?

Many lawyers—including those with Thompson Law—personal injury cases on a contingency basis. Contingency arrangements mean you don’t have to pay your attorney anything until they obtain a settlement for you.

Clients usually sign an agreement with their attorneys laying out the percentage of the settlement or judgment they will pay. Arizona attorneys usually start with 33 percent of personal injury settlements, but multiple factors can push that figure to 40 or 45 percent. The percentage an attorney takes doesn’t usually eclipse the 40-percent threshold unless the case goes all the way to a judge or jury verdict.

Separate from contingency fees, attorneys may deduct from your settlement the costs of:

• Administrative filings
• Obtaining evidence
• Securing witness testimony
• Recording depositions

How Long Does It Take to Get a Settlement in Arizona?

The length of time it takes for both sides to settle in Arizona varies as much as the amount of cases. If the other side has not agreed to your original settlement offer, you can expect at least three months for things to get resolved.

In most cases, though, settlements take much longer to negotiate—six months to a couple of years. The factors that affect the amount you may get in a settlement can also impact the length of a settlement or trial.

Potential Benefits of Going to Trial

Not being able to reach a settlement in your Arizona personal injury case can be frustrating, but it’s at least a little comforting to know you can always have your day in court.

Some of the good things about going to trial are:

• The potential for obtaining more money than you would get in a settlement.
• Getting to present your comprehensive case in front of a neutral judge or jury.
• Asking for punitive damages for egregiously bad conduct by the defendant.
• Bringing public attention (and notoriety) to the defendant’s actions.

How a Lawyer Can Help with Settlements and Trials

Personal injury cases are uncharted territory for claimants. You deserve an experienced lawyer who has tried cases similar to yours and gotten favorable outcomes.

More specifically, your attorney can help you:

• Gather crucial evidence to help support your side during the trial or settlement negotiations.
• Properly fill out legal paperwork and adhere to relevant deadlines.
• Determine the amount of money you should request.
• Say the right things during negotiations (knowing when to apply pressure or indicate openness, for example).
• Create a compelling case to present in front of a judge or jury.

Do I Have to Pay Taxes on a Personal Injury Settlement in Arizona?

In most cases, Arizonans do not have to pay taxes on funds they receive in a personal injury settlement. The primary purpose of compensatory damages is to restore claimants or plaintiffs to their financial position prior to their accident. Thus, personal injury settlements are not considered income or extra money suddenly bestowed upon victims. Even non-economic damages, such as loss of companionship, are not taxable at the state or federal level.

If you receive punitive damages, however, you may have to pay some taxes. Punitive damages are rarely awarded in personal injury cases, but they may be appropriate when the defendant engages in gross negligence. Additionally, you may have to pay taxes on any interest your personal injury award accrues between the end of your trial and the date you receive funds. While rare, those circumstances may apply in your case.

Contact Thompson Law Today

The aftermath of a serious accident can leave you feeling frightened and vulnerable. We believe your entire focus should be on your mental and physical recovery. If you put your faith in our attorneys, you can rest easy knowing your case is in the hands of experienced, zealous legal advocates.

Not even sure you have a legitimate personal injury case? That’s why we offer free initial consultations. Our staff will discuss your situation with you and advise you on the best way forward. Give us a call or send us a message to start your journey to justice.