Settlements vs. Trials in California: What You Need to Know

Lawyer presenting during a trial

Most personal injury cases do not go all the way to trial and a jury verdict. More often than not, the two sides (plaintiff and defendant) will come to a settlement both parties can tolerate. That doesn’t mean trials in personal injury cases don’t happen or that they aren’t effective tools to help deliver justice to plaintiffs.

It’s nearly impossible to say which route would be better for your personal injury case without a thorough examination of your case’s circumstances. You must weigh factors like cost, protracted timelines, and uncertainty related to the trial’s outcome before proceeding. No matter which way you want to go, Thompson Law would be glad to represent you every step of the way.

What is a Settlement?

A settlement in a personal injury case is a financial agreement between plaintiffs and defendants. In exchange for money, plaintiffs agree not to pursue a claim further. Settlements occur out of court, which means judges or juries have no say in the settlement amount.

One of the primary benefits of settlements is that they save time—even with negotiation periods. Trials are beholden to court availability, among other things. Plaintiffs sometimes favor settlements because they guarantee at least some financial payout, which is far from a guarantee in court. Defendants might favor settlements for the same reason—they often don’t want to risk a huge verdict against them.

How Do Trials Work in California?

The first step of any civil trial is making your (legitimate) claim with the proper court within the statute of limitation, which is the legal deadline to file a claim. Sometimes, simply filing a personal injury lawsuit is enough for the defendant to offer up a settlement amount.

If the defendant wishes to proceed, you’ll participate in some preliminary court proceedings. You’ll have some time for discovery, which is the process of exchanging certain evidence and information with the other party.

Once the trial begins, your attorney will present evidence to the judge or jury. Evidence might include photographs, videos, depositions, or live witness statements.

After both sides present their evidence, the judge or jury renders a verdict. In most cases, either side can appeal the decision to a higher court. Personal injury trials can be time-consuming and expensive, but obtaining justice is always the primary objective.

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

That depends. Nobody can guarantee that you’ll receive a certain amount at trial, and even settlement amounts are far from guaranteed at the outset of a case. The severity of your injuries, the type of case you’re trying, and even your attorney’s legal strategy can all affect how much you’d get in a settlement or trial.

Here are some common personal injury cases in California:

Personal injury cases can settle for mere thousands but can also go to millions of dollars depending on the injuries and damages involved.

Factors That Affect Your Settlement Amount

Although many car accident cases net plaintiffs $20,000–$30,000, for instance, several factors can dramatically affect the eventual payout. Common factors that can increase or decrease a case’s financial value include:

  • Total medical expenses (including future costs)
  • Past and future lost wages
  • Non-economic damages, such as pain and suffering, emotional distress, loss of enjoyment of life, or disfigurement
  • Amount (and integrity) of supportive evidence
  • Limits of relevant insurance policies

When to Settle and When to Try a Case

You might (understandably) be motivated to take a defendant to trial and pull out every stop to make them pay what you deserve. Sometimes, however, certain conditions may indicate that a settlement may be better for your case. The following factors may help you decide whether or not you want to put your payout at the mercy of a court.

man with a scale weighing pros and cons of settlements and trials

Pros of Settlements

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

  • Quicker resolution
  • Reduced legal costs
  • Less time spent reliving the incident in court
  • Outcome certainty

Cons of Settlements

Conversely, you might not want to settle for the following reasons:

  • You may get less money than you would have gotten at trial
  • You might not be able to get money in the future for unforeseen medical expenses
  • The defendant’s liability does not get entered into the public record

Pros of Trials

A trial for your personal injury case may be appealing because:

  • The judge or jury might award you more money than you would get in a settlement
  • The defendant gets more attention and public accountability for their actions

Cons of Trials

On the other hand, you may want to skip a trial because:

  • You’ll probably have to wait longer to receive compensation
  • The verdict might not be favorable for you
  • Legal costs are higher
  • A long court battle might be emotionally taxing

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

Thompson Law takes personal injury cases on a contingency basis, which means you only have to pay us if we win in court. This eliminates the need for personal injury victims, who might be struggling financially at the outset of a case, to pay a substantial amount of money upfront. It also motivates attorneys to fight as hard as they possibly can in court.

The percentage an attorney takes from a settlement or judgment (court verdict) typically ranges from 33% to 50%. Settlements usually net attorneys 33–35%, while trials often result in legal fees of 40–45% of the judgment.

How Close to Trial Do Cases Settle?

Most personal injury cases—as many as nine in 10—settle before a trial goes to the verdict stage. In many cases, both sides can get a sense of the potential outcome and how much the judgment will be.

Settlements are common during the discovery phase of trials. Discovery is the process of exchanging evidence between parties. Once each side has shown its hand, they are more motivated to conclude the case. However, settlements can occur anytime before the judge or jury announces a verdict.

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

Six months to a year is the typical timeframe for settlements in California personal injury cases. It might take longer if you are in the hospital for an extended period of time, for instance. Occasionally, insurance negotiations go on for many months.

In complex personal injury cases, your lawyer will have to sift through a great deal of evidence and interview many people. It’s not uncommon for these types of cases to last more than a year.

How Long Does a Personal Injury Case Last in California?

Trials themselves are usually only a few days to a few weeks. That said, cases that need to go to trial may have a total lifespan of greater than six months. Unless your case is extremely abnormal, you can expect to reach a settlement with the defendant within a year of the lawsuit’s filing.

If your case doesn’t settle before the trial portion of your case, you should expect the entire process to last at least a year (but probably no longer than two years). Pre-trial motions and trial delays can push that timeline back even more.

Risks of Going to Trial

If you are determined to take your California personal injury case to trial, you should understand the biggest risk of all: not getting money from the judge’s or jury’s verdict. That risk might not apply as much if you and your lawyer are confident in your case, but success cannot be guaranteed.

Would you still go to trial if you could settle for $50,000, but your attorney estimates an 80% chance of getting the full $75,000 you’re asking for? It’s tempting to say yes in that hypothetical situation, but you must also factor in legal fees, which are higher if your case goes to trial.

Two more things to think about: can you manage the protracted timeline of a trial relative to a settlement? Also, are you prepared to weather the emotional storm a trial is likely to bring?

How a Lawyer Can Help with Settlements and Trials

Your greatest asset during a personal injury case is an experienced California attorney. The attorneys at Thompson Law have recovered over 1.9 billion for our clients. Across those years, we’ve gained indispensable knowledge that helps us know when a settlement is a better bet and when it’s worth going to trial.

Our attorneys evaluate the following when deciding on the best path for your case:

  • The estimated total value of your case
  • The willingness of insurance companies to understand the merits of your case and provide a fair payout
  • The amount of convincing evidence we can gather
  • How well evidence is likely to play in front of a judge or jury

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

Generally, plaintiffs in California do not have to pay taxes on personal injury settlements. Compensatory (economic) damages, such as medical bills, lost wages, or even pain and suffering, are not eligible for taxation.

In some personal injury cases, however, courts order punitive damages. Punitive damages are reserved for egregiously poor behavior on a defendant’s part and are often eligible for taxation in California.

Contact Thompson Law Today

The decision between settling and going to trial after a personal injury requires analysis of incredibly complex factors. You need—and deserve—someone who’s fought for clients and gotten them justice when they needed it most.

Thompson Law will fight for you no matter which way your case goes. Our attorneys are just as comfortable negotiating settlements as they are taking personal injury cases to trial. Remember: you only pay us if you get paid.

There’s no time to waste, though—you need to start gathering evidence as soon as possible to maximize your chances of success. Get in touch with us soon.

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