How Do I Know Whether to File a Lawsuit or Not in My Tampa Car Accident Case?

Whether to file a lawsuit or not is ultimately a very personal decision. At some point during your legal representation, your Tampa car accident lawyer will talk with you about whether filing a lawsuit makes sense.  This will happen when your law firm and the insurance company reach an impasse with regard to what your claim is worth. Of course, if the insurance company tenders their policy limits then it is likely that you would have no choice but to accept those policy limits and required to file a release preventing you from filing a lawsuit against the individuals that caused you injury.  Although in some cases, it is possible that the insurance company will tender their policy limits without requiring a release.  Even then, filing a lawsuit may not be in your best interest.  This happens because even if you were to receive a judgment much higher than the tendered policy limits it is unlikely that you'd be able to collect upon that judgment.  Likely, the defendants would not have the assets to be able to pay the judgment or they would be able to declare bankruptcy and wipe the judgment away.  While this is generally the case, this doesn’t always hold true.

But assuming that the impasse occurs with the insurance company at an amount less than the insurance company’s policy limits, you'll have to make a decision whether to accept the negotiated amount or file a lawsuit. Your Tampa car accident lawyer may offer an opinion about whether the amount offered is appropriate, but of course the final decision is yours. Rarely, does an insurance company offer to settle for an amount much greater than what the claim is worth. But it does happen. And it seems to happen more often if your auto accident law firm has a history of filing lawsuits in the pursuit of justice.  When an insurance company knows that your Tampa injury law firm stands ready to fight for the appropriate amount of a claim, the insurance company will likely be more interested in resolving the matter rather than risk the expense of having to defend their insured against your valid claim.  But more often, insurance companies will offer an amount less than what is reasonable. In those situations, your Tampa law firm is more likely to recommend filing a lawsuit after evaluating with you fully the risks.  

In the majority of cases, the amount that the insurance companies are willing to ultimately settle before a lawsuit is filed is neither so high that settlement is obviously the most appropriate course nor so low that filing a lawsuit is obviously the most appropriate choice. Instead, the amount is in a gray area in between.

In cases where the proposed settlement is in this gray area or in cases where it is even much lower than that, there are several important considerations that you must take into account before determining whether filing a lawsuit is appropriate. One of the most significant issues that your Tampa car accident lawyer must explain to you is the financial consequences of what’s called a Proposal for Settlement [PFS].  A proposal for settlement is likely to be filed by the defendant (s) at some point during the litigation process. It is important that you have a full understanding of the potential financial impact of a  proposal for settlement since the results can be financially devastating.  In general, the way a proposal for settlement works is that the other side proposes a certain amount to settle for in writing.  You have 30 days to make your decision whether to accept or not. If you accept the proposed amount than your case is settled and monies are dispersed.  If you don't accept that amount than your cases proceeds.

Your case may still be settled before a jury verdict is reached.  Your case could settle during a mediation or even during the trial itself.   The financial impact of a proposal for settlement exists only if a jury verdict is returned.   There are financial consequences to you if the verdict in your car accident Tampa case is not greater than 75% of the amount proposed by the defendants in their proposal for settlement.  You should know that during the course of litigation, the defendants can file numerous proposals for settlement for different amounts.  Winning any one of the proposals would entitle the defendants to attorney’s fees and costs.

And what are the financial consequences for losing a proposal for settlement. You can be held personally responsible for the defendants’ attorney fees and costs.  Those total fees and costs can end up costing tens of thousands of dollars or more.  

The purpose of the Proposal for Settlement was to encourage parties in a lawsuit to resolve their claims without the use of the court system. Unfortunately, Proposals for Settlement have had a chilling effect on your average person who wishes to pursue a claim against an insurance company or large corporation. That is because insurance companies and large corporations have much deeper pockets than individuals.  While an insurance company may be able to accept the burden of losing a Proposal for Settlement that is filed by the Plaintiffs as party of doing business, a Plaintiff doesn’t have such deep pockets and may face financial ruin by losing.

So who is it that is willing to accept such risks in order to pursue a personal injury claim, regardless of how just their cause. Generally your Tampa auto accident lawyer will share with you that if you are judgment proof that you have nothing to be concerned about. Judgment proof means that you don't have any assets and that you are not working or perhaps you are the head of your household.  As head of your household your wages cannot be attached in the event that the defendants pursue a judgment against you and try to attach your wages.  Plaintiffs who are in a position to file for bankruptcy and wipe the judgment away in a worst-case scenario also do not have to be concerned about the potential catastrophic effects of a proposal for settlement.

You can see that it is very important that you understand all the issues related to a Proposal for Settlement in your Tampa car accident claim before filing a lawsuit so that you can make the best decision for yourself.

Generally, the Proposal for Settlement is really the only financial risk that you face in having your Tampa car accident law firm file a lawsuit.  Otherwise, as you learn from this article, it’s a matter of your considering the amount of time and energy necessary to pursue your claim.

You'll learn from your Tampa automobile injury lawyer that once lawsuit is filed, the defendants will have a chance to do what's called discovery. Discovery is the process whereby both parties learn information from each other before appearing in front of a jury.   Learning information about each other can also help disputes get resolved as each side recognizes the strengths and weaknesses of their positions.

Discovery includes both written and oral questions. Written questions are known as interrogatories.  Written questions will be sent to you that must be completed within a certain time frame.   In addition, your deposition will be taken as part of discovery.  In a deposition, the defense attorney will ask you  questions under oath that are then recorded by a court reporter.  Depositions, like interrogatories, can be used to impeach you during trial testimony.

In addition to discovery, the defendants will have you present yourself to one of their doctors for examination.  This is often referred to as an independent medical examination or IME.  But since these doctors are hired by the defendants and are expected to testify against you at trial, their opinions are far from independent and objectively determined.  These defense medical examiners will examine you, and then have an opportunity to testify about your medical condition in front of the jury. The examination takes approximately one-hour and can be arranged around your schedule so as not to cause you too much inconvenience.

There also will be a mediation during the litigation process before trial. At mediation, the Plaintiffs and Defendants will come together to present their perspectives with regard to the case.  It is an opportunity for your Tampa injury attorney to present the evidence expected to be used at trial and also to listen to what the defendants expect to be able to prove through the evidence.  A mediator attempts to negotiate between the parties so that a settlement can be reached. Mediations are a requirement before trial.

The trial itself will generally take at least one week, although more complex medical malpractice matters may take two weeks or even more. You will be required to be at trial and so it will be necessary to take at least a week off of work. But realize that once a lawsuit is filed, many Tampa car accident lawyers will tell you that it is more likely than not that your case can be resolved to your satisfaction before the jury actually returns the verdict and often well before the trial itself.

You can see from this article that there are a lot of things to consider before filing a lawsuit for your auto accident injuries. It's one of the reasons why it's so important that you hire a Tampa law firm with experience doing trial work so that they can explain to you all of the issues and consequences of your decision. Our Tampa car accident lawyers have significant experience in trial and can guide you with regard to the numerous issues involved in filing a lawsuit, all with the purpose of making sure that you make the decision whether to file lawsuit that is most appropriate for you and your personal situation. Should you have any questions about filing a lawsuit in an auto accident case, whether it occurs in Tampa, St. Petersburg or elsewhere in Tampa Bay, please feel free to contact us.