An out of court settlement, otherwise known as a negotiated settlement, is an arrangement that can be set up by your personal injury lawyer to establish the outcome of your suit without the inclusion of a judge, jury or the trial process. Both attorneys are involved in the process and it sometimes can be more preferable than a long court case.
Insurance companies prefer to settle out of court because it reduces their court costs. They are more likely to agree to a settlement without the inclusion of the judge and jury. It is not recommended that you accept an out of court offer from an insurance company without the advice of your personal injury lawyer.
It is imperative that you allow your personal injury lawyer to discuss the terms of your out of court settlement with the insurance company so that you receive the maximum compensation allowable.
Without representation, the insurance company may try to low-ball you. It is in the insurance company’s interest to maintain its profits, and that includes retaining as much money as possible when negotiating settlements.
An out of court settlement can be a positive experience for all involved, if properly negotiated. Remember, once you agree to an out of court settlement, you relinquish all rights to a trial. Confer with your lawyer before taking any serious legal actions.