If you suffer an injury due to someone else’s negligence, you may be entitled to seek compensation for your losses. However, figuring out whether you should file an insurance claim or proceed with a lawsuit in court can be confusing. Although both routes can potentially compensate you for pecuniary damages (like medical expenses) and non-pecuniary damages (like pain and suffering), there are important differences to consider.
Every personal injury case has its own facts and timeline. Still, most claims and lawsuits share similar stages. Read on to learn about the key differences between a claim and a lawsuit—and how working with an experienced lawyer can help you make the best decision for your situation.
Initial Consultation
Most personal injury lawyers offer a free initial consultation. During this meeting, you can discuss the details of your accident and injuries. Your lawyer will provide initial insights about whether you should:
- File an insurance claim directly with the at-fault party’s insurer
- Pursue a lawsuit in civil court if a fair settlement isn’t likely through negotiations
You won’t be obligated to hire a lawyer if you decide not to. However, if you hire legal counsel, they can guide you on the right path—whether negotiating a claim or initiating a lawsuit.
Investigation and Demand Letter
Before you decide whether to settle your case through an insurance claim or proceed with a lawsuit, your lawyer will conduct a thorough investigation. This often involves:
- Gathering medical records and bills
- Reviewing any police or accident reports
- Interviewing witnesses to strengthen your case
- Consulting with experts, such as accident reconstruction specialists or medical professionals
Once they understand liability and how much your case might be worth, your lawyer can send a demand letter to the insurance company. A demand letter states the compensation you are seeking for your injuries and related losses. If negotiations go smoothly, you could resolve your case through a claim without ever stepping into a courtroom.
Settlement Negotiations
After receiving your demand letter, the insurance company may accept it, deny it, or counter with a lower offer. They often use tactics designed to reduce their payout, such as disputing who caused the accident or challenging the severity of your injuries.
If your lawyer and the insurer find common ground, your case will settle. Settlements typically include a release clause that prevents you from pursuing further legal action on the same claim. This path can save time and money, as lawsuits can stretch out over months or even years. However, settling too early or for too little can leave you under-compensated for your losses.
Filing a Personal Injury Lawsuit if Necessary
If negotiations fail to produce a fair offer, filing a lawsuit may be the next logical step. Filing a lawsuit shows the defendant and the insurance company that you are prepared to fight for the compensation you believe you deserve. In Ontario, you have a specific amount of time (two years)—known as the statute of limitations—to file a lawsuit. If you miss that deadline, you may lose your right to pursue compensation.
Filing a lawsuit doesn’t automatically mean your case goes to trial. Settlement negotiations often continue during this time. Still, filing suit can put more pressure on the insurance company to negotiate fairly, especially if your lawyer has a strong case.
The Discovery Process
Once a lawsuit is underway, both sides enter a phase called “discovery.” During discovery:
- Your lawyer can request documents, like medical records or internal company reports.
- Each side may conduct depositions of witnesses and experts under oath.
- Both parties gather evidence to build their cases and understand the other side’s position.
Discovery can shed new light on critical facts. If damaging evidence emerges, an insurance company may even offer a higher settlement. At other times, discovery reveals weaknesses that make a settlement more likely. Regardless, this stage helps everyone understand the case’s strengths and weaknesses before deciding whether to proceed to trial.
Going to Trial
Many personal injury cases don’t make it to trial, as it can be time-consuming and risky for both parties. However, a trial may be necessary if no settlement is reached and the defendant insists on contesting liability or the value of your claim. At trial:
- Your lawyer will present evidence and arguments to prove the defendant was at fault.
- The defense will present its side, often aiming to show that you share fault or that your injuries aren’t as serious as claimed.
- A judge or jury will decide who is liable and how much compensation, if any, you should receive.
Trials can be unpredictable. Even strong cases can face unexpected setbacks if a jury interprets the facts differently than anticipated. Nonetheless, some situations require a trial to achieve maximum compensation.
Contact a Hamilton Personal Injury Lawyer for a Free Case Evaluation
Deciding whether to file a personal injury claim or pursue a lawsuit can feel daunting. However, the process becomes more manageable when you have a lawyer who understands both routes and knows how to protect your rights. An experienced lawyer can help you gather evidence, negotiate with insurance companies, and take legal action if those negotiations break down.
If you have questions about whether a claim or lawsuit is best for you, reach out to a trusted Hamilton personal injury lawyer at Findlay Personal Injury Lawyers for a free case evaluation. That way, you’ll have professional guidance every step of the way.