Is a Lawsuit Always Necessary to Recover Compensation After a Car Accident?
Legally Reviewed and Edited by: Terry Cochran
If you’ve been injured in a car accident in Michigan due to someone else’s negligence, you might be eligible to recover compensation after a car accident without a lawsuit.
In Michigan, you have other legal options, such as filing a claim and going through mediation, to obtain compensation that doesn’t require a full jury trial. To help you explore your options, consult with a Michigan car accident lawyer from Cochran, Kroll, & Associates, P.C.
What is a Lawsuit in a Car Accident Case?
A lawsuit is a civil legal action in which one party sues another, ultimately deciding the matter in court. In car accident cases, this is typically the accident victim and a negligent party’s insurer, although a lawsuit can also be filed independently against an at-fault driver.
The lawsuit begins with the plaintiff filing a complaint with the district court. This document identifies the parties involved and describes the nature of the grievance and the damages sought.
The court then issues a summons and a copy of the complaint to the defendant within 21 days. The defendant must respond to the complaint by filing an answer in the same court or risk having a default judgment entered against them.
Once the complaint is answered, the discovery process begins. The discovery phase allows both parties to gather relevant information and evidence to support their case. Discovery can include written questions, oral questions under oath, and document reviews.
The case will proceed to trial if a settlement cannot be reached during pretrial procedures, such as a case evaluation, mediation, or arbitration. The trial may be before a judge or a jury and involves opening statements, presentation of evidence, and examination and cross-examination of witnesses.
For example, a plaintiff may argue that the defendant was driving recklessly and caused the collision. An accident reconstruction expert may testify how the road’s minimal grade, superelevation, and curve radius didn’t cause the accident. Instead, they will point to the length of the skid marks on the road to prove the defendant was speeding.
After the trial, the judge or jury will arrive at a verdict and a settlement. The settlement award is the compensation the at-fault party must pay for damages incurred from the accident. The party who won the case prepares the judgment, which is then entered into court records.
Why Filing a Lawsuit May Not Be the Best Option
While a car accident lawsuit can hold responsible parties accountable and help victims receive financial compensation for damages, there are reasons why pursuing a lawsuit isn’t the only option.
A lawsuit takes longer to settle than most insurance claims and can have high financial costs for car accident victims. The emotional toll and the risk of losing are factors to consider before filing a lawsuit.
It’s Time-Consuming
Depending on the complexity of the case and the court’s caseload, the legal process can drag on from several weeks to years. You may need to attend numerous court hearings and mediation sessions and collect additional evidence to settle your claim.
For instance, the insurance company representing the at-fault driver may dispute the severity of your injuries and the need for medical treatment. You will need to work with your attorney to collect extensive medical records to prove your injuries and the care you have received.
Under HIPAA’s privacy rule, medical providers have 30 days to process a records request and send the records. However, it is uncommon for records to be received within that time frame. You may need to wait several months for the records to be provided unless they are categorized as urgent or if a subpoena has been issued.
It’s Costly
Whether you win or lose the lawsuit, you will likely have to pay various legal expenses, such as court filing fees and costs associated with collecting evidence. Your court filing fees depend on the damage amount in your lawsuit. If your claim is between $1,750 and $10,000, the filing fee is $65. The filing fee for claims over $10,000 is $150.
The fees for medical records and witnesses in Michigan also add to your lawsuit costs. As of 2023, the initial payment for a medical record is $28.92, and each page in the first 20 pages costs $1.45. Michigan law requires reasonable compensation for witnesses in court cases, with $12.00 for each day and $6.00 for each half day of attendance in court.
You Run the Risk of Losing
Even if you have a strong case and an experienced attorney, the decision is ultimately in the hands of the judge or jury. The judge or jury is responsible for weighing the evidence and making the final determination based on the law and facts presented in court.
The outcome of a case can be influenced by various factors, including the strength of the evidence, the credibility of witnesses, and the judge or jury’s interpretation of the law. Despite persuasive arguments and compelling evidence, the court decides on the damages you can receive.
It Can Take an Emotional Toll
You may have to relive the traumatic events of your accident in court, which can be distressing and difficult. According to a 2020 study, going through the legal system can negatively affect the mental health of both plaintiffs and defendants.
Defendants were found to have a negative outlook on the future and displayed reduced empathy. Plaintiffs experienced health issues, had a pessimistic attitude toward life, and showed more psychosomatic symptoms. These effects worsen the longer the case continues and the more court appearances involved.
Alternative Methods to Recover Compensation
In Michigan, you have several options for compensation after a car accident without a lawsuit. They include filing an insurance claim, going through mediation or arbitration, and negotiating a settlement outside of court.
Insurance Claims
You can file a personal injury protection (PIP) insurance claim in Michigan regardless of who was at fault for the accident. Your PIP insurance benefits cover a wide range of expenses, including lost wages, medical bills, and household replacement services. In-home attendant care is also covered for up to 56 hours per week. Your insurance company must provide more coverage if your injuries require additional attendant care.
Certain situations in Michigan also allow you to file a third-party claim for damages against the responsible party’s insurance company. This enables you to seek compensation for medical bills above your PIP coverages and non-economic damages such as pain and suffering.
Mediation
Mediation is a voluntary process where a neutral third-party mediator helps the plaintiff and the defendant discuss and resolve a dispute. The mediation process starts with opening statements and a joint session with the parties.
When both parties reach an agreement during mediation, they sign a contract stating the terms of the settlement. They file the contract with the court, resolving the case, avoiding trial.
Arbitration
Arbitration is a legally binding negotiation process outside of court where a private arbitrator decides your case. Unlike a mediator who acts as a third-party negotiator, an arbitrator acts as a private judge to hear evidence and make rulings to settle disputes.
Your attorney can present exhibits and even call witnesses to testify. They can make a closing argument explaining what you have proven and what kind of award you seek. The arbitration decision is made at the time of appearance or within a few days and describes the final settlement details.
Settlement Negotiation
Your lawyer can conduct settlement negotiations on your behalf with the third-party insurer, emphasizing the severity of the incident and your injuries to defend your position. They first establish the minimum settlement amount you are willing to accept based on the value of your medical bills and lost wages resulting from the accident.
Then, your attorney will use evidence, such as medical records and photographs of your injuries, to strengthen your claim.
When to Consider Filing a Lawsuit
Although staying out of court may be preferable for your case, there are times when a lawsuit might be necessary for receiving compensation. At Cochran, Kroll, & Associates, P.C., our attorneys will help you understand when you may need to file a lawsuit for the best outcome, including the following situations:
Insurance Company Refuses to Pay
Insurance companies have the right to deny your claim or refuse to pay your asking amount if they don’t believe your evidence is sufficient to prove your damages. If the negligent driver’s insurer refuses to pay what you’re owed, your attorney may advise you of your option to file a lawsuit seeking compensation instead.
In this situation, a lawsuit may be preferable because it allows you to pursue maximum compensation, including medical expenses, lost wages, emotional distress, and pain and suffering. It also takes the power of deciding the settlement out of the insurance company’s hands and lets an impartial judge or jury decide.
Serious Injuries or Death
In Michigan, PIP insurance and the other driver’s liability insurance cover your damages resulting from a vehicle crash. However, PIP insurance only covers up to your limit, which could be as low as $50,000, while minimum liability insurance only covers $20,000 per injured person. Unless you or the other driver carry more than these minimums, you may only receive $70,000 in a settlement.
The state’s serious injury threshold allows you to seek compensation if your injuries result in serious or permanent disfigurement or impairment of bodily function. This can include injuries to your spinal cord injury, which can have a lifetime cost of $336,000 or more. If you were to pursue an insurance claim, your settlement may not come close to covering your lifetime expenses.
A lawsuit allows you to seek these estimated damages for your serious injury and lifetime care costs. It would also let you pursue non-economic damages for 1.5 to 5 times your calculable losses.
With the right legal team from Cochran, Kroll, & Associates, P.C., including Eileen Kroll, partner, and nurse attorney, you can win the settlement you deserve. Eileen Kroll can use her expertise in the medical field to accurately determine your current and future healthcare expenses and how your injuries impact your quality of life.
Eileen can also access medical experts to testify on your behalf in a lawsuit, winning you an award that covers your damages so you can focus on recovery and progress after a serious injury.
Let Our Experienced Attorneys Review Your Case
If you’re seeking compensation for an injury, our attorneys at Cochran, Kroll & Associates, P.C. can help you understand your options. Our skilled auto accident lawyers have helped clients obtain compensation through claims negotiation, mediation, and other alternative resolution methods that don’t involve costly, time-consuming lawsuits.
We understand the importance of finding a solution that works best for you. We will tailor our legal approach to help you receive maximum compensation after a car accident without a lawsuit.
Our contingency fee basis means we only get paid if we win your case, so there is no financial risk to you to get started. Call our law firm today at 1-866-MICH-LAW and schedule your no-obligation, free case evaluation.
Disclaimer : The information provided is general and not for legal advice. The blogs are not intended to provide legal counsel and no attorney-client relationship is created nor intended.
