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

Not every personal injury or civil case goes to trial. While the jury filing into the courtroom after tense deliberations to read a verdict might make for entertaining television, it doesn’t reflect the reality of most legal cases. In fact, legal scholars estimate that around 90 percent of cases end in a settlement.

You are not required to take any settlements offered by the person or entity that caused you to suffer injuries or losses. It’s good to have the option of presenting your case in front of an unbiased judge or jury. That option, however, carries some risk. We’ll get into that and more below.

What Is a Settlement?

In the context of personal injury cases, a settlement is an agreement between both parties (victim and wrongdoer) to not pursue legal action. The person whose wrongful actions caused injuries offers the victim money or some other type of relief. The amount may be less than the victim could get in court, but both sides may opt for certainty instead of taking their chances with a judge or jury.

How Do Trials Work in Georgia?

Trials in personal injury cases usually result after months of failed negotiations between two parties. Many victims send wrongdoers a demand letter before filing a lawsuit; demand letters ask for specific damages without the need for a court to intervene. Attorneys can examine cases and advise their clients on their relative chances of success in court.

If you decide to take your personal injury case to trial, the process will essentially follow these steps:

• Filing a legal complaint with the appropriate court. Your complaint is what will officially kick off legal proceedings. Take care to ensure you file the complaint in the right jurisdiction; this might be the location of the accident or wherever the defendant lives.

• Waiting on the defendant’s response. The other party gets a chance to answer the claims you make in your filing. You must serve the defendant their papers in an acceptable way; this may involve a law enforcement officer or process server giving the papers to the defendant in person.

• Participating in discovery. Unless the defendant agrees to your demands—highly unlikely, given that you probably tried negotiating before filing the lawsuit—it’s time for the discovery phase. Discovery consists of exchanging information with the other side. You may be in a stronger negotiating position after finding out more about the case.

• Filing pre-trial motions. Before the judge or jury hears your case, it might help to exclude certain evidence, change venues, or otherwise shape the way the trial unfolds. The judge may not grant these requests, but they’re usually worth asking for anyway.

• Going to trial. The trial portion consists of opening statements, expert testimonies, cross-examination, and closing arguments. It might last several days, several weeks, or, rarely, longer. You and the defendant can continue negotiating during the trial.

• Receiving the verdict. You’ll be alerted when the judge or jury is ready to read the verdict. If their findings do not satisfy you, your attorney may help you appeal the case.

When to Settle and When to Try a Case

Each civil case presents unique circumstances, which is why it’s so difficult to determine the route you should take based on advice you read online. An experienced Georgia personal injury attorney will be your greatest asset, as they have resolved countless cases for plaintiffs dealing with all manner of legal matters.

It may help to analyze the pros and cons of going to trial when deciding whether you should file a lawsuit against the person who caused your injuries.

Advantages of Settlements

A few prominent advantages of settling your personal injury case include:

• Certainty. No matter how solid you feel your case is, allowing a judge or jury to decide the damages you deserve is always a gamble. Settling with the defendant ensures that you don’t come away empty-handed—sometimes, one in the hand is worth two in the bush.

• Shorter timeline. The average trial takes longer to resolve than settlement negotiations. Each stage of the legal process is at the mercy of the court’s schedule. If you’re already experiencing financial hardships, you might not want to wait any longer than you have to for compensation.

• Fewer legal fees. Relative to settlements, trials can be expensive. You may have to pay expert witnesses for their time in and out of court. Car accident cases frequently require accident reconstruction experts. Between those expenses and court fees, you might want to opt for a settlement.

• Privacy. Almost everything that happens during a civil trial becomes a matter of public record. You should never feel embarrassed about going to court to get the compensation you deserve, but confidentiality nevertheless might be important to you.

• Preserving your emotions. Proving your case in court usually means providing some details you may not want to relive. Cross-examination from the defendant’s legal counsel might also be stress-inducing. Only you can decide whether the intense feelings and emotions often associated with trials are worth going through.

Disadvantages of Settlements

Settlements are not without their risks, which include:

• A lower payout. Of course, going to trial risks you coming away without any compensation. However, a judge or jury might end up giving you less than you’d be willing to take.

• No public accountability. Some plaintiffs couldn’t care less about preserving their privacy. Instead, they might want the defendant to get media attention or as much scorn as the public can manage. Having a judgment against the defendant read into the public record may be worth all the stresses a trial can bring.

• The picture of your injuries may not be clear. Plaintiffs occasionally undervalue their damages when settling personal injury cases. Part of the reason for this is the truncated timelines for settlements. Additionally, the settlement agreement may limit your options to seek more compensation in the future.

Don’t Forget About the Statute of Limitations

The statute of limitations looms in every civil case. This period, which is two years for most Georgia personal injury cases, forbids plaintiffs from filing suit if they wait too long. Plaintiffs have a few opportunities to get the statute of limitations in their cases delayed, or tolled, but you shouldn’t rely on it in yours.

You might convince the other party to agree to temporarily toll the statute of limitations if you both commit to negotiating the matter. No matter what, having a statute of limitations apply in your case means you need to act with urgency after you suffer injuries or losses.

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

Most of the time, plaintiffs do not have to pay any taxes on compensation they receive through a settlement or in a civil trial. Damages are meant to reimburse personal injury victims for money they’ve either already spent during their recovery or are expected to miss out on in the future. In other words, plaintiffs’ damages should restore them to the financial position they would be in if they had never suffered injuries.

One notable exception to taxable damages involves punitive damages. Courts occasionally award punitive damages to punish defendants for egregious or malicious behavior. Georgia law caps punitive damages at $250,000 (with some exceptions), and plaintiffs receive only 25 percent with the remainder going to the state. The portion they receive is often subject to state or federal taxation, though, as it’s considered above and beyond what the plaintiff needs to compensate them for their losses.

Additionally, plaintiffs may have to pay taxes if they place their compensation in accounts that accrue interest. The interest they gain, like punitive damages, is not considered compensation for their losses.

Attorney’s Fees for Settlements and Trials

Another thing you should at least know about when deciding between settlements and trials is the contingency fee basis under which many Georgia personal injury attorneys operate.

Working on contingency means an attorney only gets paid if they are able to recover money for their client. The exact percentage your attorney may charge depends on a number of factors, including whether or not your case goes all the way to trial.

Cases that settle before legal proceedings even start typically demand lower percentages than cases that get tried before a judge or jury. Attorneys also factor in the costs of gathering evidence, taking depositions, and other out-of-pocket expenses. You might actually end up getting more money in a trial, as the judge or jury may award you more than you would settle for.

How a Lawyer Can Help with Settlements and Trials

The legal system presents plaintiffs with many unfamiliar nuances and requirements. They must fill out paperwork a certain way, within the statute of limitations, in the proper jurisdiction, against the party who’s actually liable. Attorneys deal with these nuances every day.

You might also be leaving money on the table if you try to resolve your personal injury case without a lawyer. An attorney might identify damages you didn’t even know you could request or notice potential weaknesses in your case. Experienced lawyers can also apply pressure during negotiations to maximize the money you can get from the defendant.

Contact Thompson Law Today

Your only job after suffering harm at the hands of another person should be recovery. Physical injuries present enough challenges, and you might need mental health treatment for your mental and emotional state. You deserve a skilled and experienced attorney to guide you through the process of recovering the compensation you deserve.

Thompson Law offers free, no-obligation initial consultations for anyone who might have a personal injury case. You can speak to our staff by calling 866-293-4768 or sending us a message through our website.