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

Settlements vs. Trials in Texas

Settlements, trials, cases, claims, verdicts—all these terms can be confusing when you’re unfamiliar with legal jargon.

It’s easy to get tangled up in the complexities of the justice system, especially when you’re trying to go through your case with a legal attorney.

Settlements and trials are two common paths to resolving personal injury cases, each with its own impact on time, costs, and potential outcomes. We will help determine the best course of action based on your case’s unique details, but understanding the basics is also important.

In this article, we’ll break down the key differences between settlements and trials in Texas, so you’ll have a clearer idea of what to expect as your case moves forward.

What Is a Settlement?

A settlement is basically an agreement between both sides of a dispute that doesn’t call for the need to go to a trial.

In personal injury cases, this means that the at-fault party or their insurance company agrees to pay you a certain amount to compensate for your loss or injuries. Negotiations are made between your attorney and the other side, aiming to resolve the dispute without being inside a courtroom.

If an agreement is reached, you’ll receive compensation, which can be paid all at once or through a structured settlement plan, depending on what works best for you. 

Settlements are common in personal injury cases for several reasons. They save time and money by avoiding lengthy trials, and they give both sides more control over the outcome. Plaintiffs, or injury victims, can get their compensation faster, while defendants avoid the uncertainty and potential costs of a trial.

How Do Trials Work in Texas?

When a personal injury case goes to trial in Texas, the process involves several important steps. Here’s what to expect:

1. Jury Selection

The trial begins with selecting a jury through a process called voir dire, where both sides question potential jurors to ensure a fair and impartial group is chosen.

2. Opening Statements

Both sides present their opening statements, explaining their version of events and outlining what they intend to prove.

3. Presentation of Evidence

Your attorney will present evidence, including medical records, witness testimony, and expert opinions. The defendant’s side will then have the opportunity to present their evidence and cross-examine witnesses.

4. Closing Arguments

Once all evidence has been presented, both sides give their closing arguments, summarizing their case and why the jury should decide in their favor.

5. Jury Deliberation and Verdict

The jury deliberates in private and reaches a decision on whether the defendant is liable and, if so, how much compensation you should receive.

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

The amount you get in a personal injury case in Texas depends on several factors, including the severity of your injuries and the legal strategy of your attorney.

However, typical costs for settlement range from $10,000 to over $1 million, and this is for faster compensation. Trials, while more time-consuming, can result in larger amounts, especially for cases that involve long-term injuries.

For car accidents, settlements often range from $10,000 to $500,000 or more, also depending on the severity of injuries and liability. Slip and fall cases generally lead to payouts between $10,000 and $250,000 for moderate injuries, with higher awards possible for more severe cases.

Medical malpractice cases tend to result in larger payouts, with awards ranging from $50,000 to several million dollars, depending on the extent of harm caused.

Factors That Affect Your Settlement Amount

Several key factors play a role in determining your compensation, including:

  • Medical expenses, including past and future costs for hospital stays, surgeries, rehabilitation, and follow-up visits, significantly influence your settlement
  • Lost wages and reduced earning capacity if you miss work or can no longer perform your job due to the injury. Compensation may cover both lost income and future earnings
  • Pain and suffering damages, which account for the physical pain and emotional distress you experience. The more severe and long-lasting the pain, the higher this portion of your settlement may be
  • Strong evidence and clear proof of liability improve your chances of securing a higher payout. Medical records, photos of injuries, accident reports, and witness testimony all contribute to building a compelling case
  • Insurance policy limits, which can sometimes restrict the maximum amount you receive. If the at-fault party’s policy limit is low, your attorney may explore other avenues, such as underinsured motorist coverage, to help you recover what you deserve

When to Settle and When to Try a Case

Deciding whether to settle or take a case to trial in Texas depends on the specifics of the case and what’s in the best interest of the injured party.

Your attorney will assess the strength of your evidence, the defendant’s willingness to negotiate, and the potential compensation from both options before recommending a path forward.

Pros of Settlements Cons of Settlements
  • Faster resolution, often avoiding lengthy legal battles
  • Lower legal costs compared to trials
  • Reduced emotional stress, as settlements are less confrontational
  • Certainty of outcome, avoiding the unpredictability of a jury verdict
  • Potentially lower compensation than what a jury may award
  • Risk of underestimating long-term medical or financial needs
  • Lack of public accountability for the defendant, as settlements are private
Pros of Trials Cons of Trials
  • Opportunity for higher compensation, especially when injuries are severe
  • Public accountability, which can be important if the defendant’s actions were reckless or harmful
  • Longer timelines, which can delay compensation
  • Higher costs due to attorney fees, court expenses, and expert witnesses
  • Emotional toll on plaintiffs, as trials can be stressful and time-consuming

 

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

Here at Thompson Law, we work on a contingency fee basis, so we only get paid if we win your case.

The typical fee ranges from 33% to 40% of the settlement, depending on how complex the case is and how far it progresses.

This fee structure benefits plaintiffs by eliminating upfront costs and allowing them to pursue legal action without financial risk. It also incentivizes attorneys to maximize compensation, as their payment is directly tied to the outcome.

How Close to Trial Do Cases Settle?

Many personal injury cases in Texas settle shortly before trial begins.

It’s common for both sides to negotiate more seriously as the trial date approaches because neither wants the added time, cost, and risk of court. Settlements often occur within weeks or even days before trial, with some cases resolving mid-trial if new evidence or offers arise.

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

Simpler cases involving minor injuries may settle within a few months, while more complex cases requiring extensive medical treatment or investigations can take a year or longer.

For example:

  • Minor cases (e.g., soft tissue injuries or minor car accidents) can take 3 to 6 months to resolve
  • Moderate cases involving broken bones or lengthy recovery periods may take 6 to 12 months
  • Severe cases with permanent disabilities, contested liability, or large damages may take over a year

Delays can occur if you are still receiving medical treatment, as settling too early could result in insufficient compensation.

How Long Does a Personal Injury Case Last in Texas?

The length of a personal injury case varies depending on whether it is resolved through settlement or trial. While settlements are typically quicker, trials add months or even years to the process. Here’s a general timeline to expect:

  1. Filing the claim begins within weeks or months after the injury once you consult an attorney and gather evidence
  2. Insurance negotiations take place early in the process, often within 3 to 6 months
  3. Filing a lawsuit occurs if negotiations fail, which can extend the case timeline
  4. Discovery phase involves gathering evidence and depositions, usually lasting 6 months to a year
  5. Trial or settlement marks the resolution, with trials potentially lasting several days or weeks and adding months to the overall process

Cases that settle early can take as little as a few months, while trials may extend the process to 2 years or longer. You can work closely with your attorney to navigate these stages and minimize delays.

Risks of Going to Trial

personal injury case trial

Going to trial may seem like the path to a larger payout, but it comes with risks that shouldn’t be overlooked. Trials take time, with some cases dragging on for years. This means more court dates, legal fees, and added emotional stress. Legal costs are higher compared to settlements, as trials involve attorney fees, expert witnesses, and court expenses. There’s also the risk of losing the case or receiving less compensation than you would through a settlement, especially if the jury isn’t fully convinced of your argument.

For example, in cases with unclear evidence or disputed liability, you may leave the courtroom with less than expected—or nothing at all. Your lawyer will carefully assess these risks and help you decide if the potential reward outweighs them.

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

Most of the compensation you receive in a personal injury settlement in Texas is not taxable, but some portions may be. Compensation for medical expenses and pain and suffering related to physical injuries is generally non-taxable. Lost wages tied directly to your injury are typically exempt as well.

However, punitive damages and any interest earned on the settlement amount are taxable. For example, if your settlement includes $50,000 in punitive damages, you will likely need to report and pay taxes on that portion.

You may work with a tax professional to ensure that you understand your obligations and keep as much of your compensation as possible.

Contact Thompson Law Today

At Thompson Law, we understand the challenges you face, and our team is here to help. Our experience, commitment, and contingency fee model ensure you won’t pay any upfront costs, whether you settle your case or take it to trial. We only get paid when you win.

Schedule a free consultation today to discuss your case. With over $1.9 billion recovered for our clients, we’re ready to fight for the compensation you deserve. Don’t delay, contact Thompson Law now and let us guide you toward justice.

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