When to Negotiate a Claim and File a Lawsuit?

Were you involved in an accident in a parking lot or a car accident? You have the right to negotiate a settlement with the other driver’s insurance company. If you cannot reach an agreement, you have the option of filing a lawsuit against the insurance company.

What Is Negotiating a Claim?

Negotiating a claim is the process of agreeing with the other party about who is responsible for the accident and how much money you will receive for your damages. This can be done informally, by yourself or with the help of a lawyer, or through formal mediation or arbitration.

Sometimes, a lawyer is not necessary to negotiate a settlement. However, it is always the best option to at least consult with one to ensure you are getting the best possible settlement.

For instance, a distracted driving lawyer can help you if you were hit by a driver who was texting while driving. They know how to value your claim and properly negotiate with the insurance company.

Why Should I Negotiate a Claim?

There are several benefits to negotiating a claim rather than immediately filing a lawsuit, including:

  • It is often quicker and cheaper than going to court.
  • You have more control over the results of the case.
  • You may be able to receive a larger settlement by negotiating directly with the other party.

What Are My Options if I Can’t Negotiate a Settlement?

If you’re unable to reach an agreement through negotiations, you have the option of filing a lawsuit against the other party. This is known as “litigation.” Litigation can be costly and time-consuming, but it may be the only way to get the compensation you deserve.

What Is Filing a Lawsuit?

Filing a lawsuit is taking legal action against another party by going to court. This is usually done as a last resort when negotiation fails, and the parties cannot come to an agreement.

If you sue the other party, your case will be assigned to a judge or jury, who will hear the story’s both sides and determine who is liable for the accident and how much money you should receive.

Also, it’s important to note that, in most provinces in Canada, you must file a lawsuit within a certain period of time after the accident, known as the statute of limitations. If you don’t, you will likely lose your right to recover any compensation.

When Should I File a Lawsuit?

Before filing a lawsuit, always consult with an experienced lawyer (such as this Halifax car accident lawyer). They can help you understand the statute of limitations in your province or territory, which is the deadline for filing a lawsuit.

Below are factors to consider before deciding whether or not to file a lawsuit:

  • The severity of your injuries
  • The sum of money you are seeking in damages
  • The strength of your case
  • The amount of time that has passed since the accident occurred
  • Your province’s statute of limitations

It’s important to note that even if you have a strong case, it may not be worth pursuing if the statute of limitations has passed.

For example, if you were in a car accident that caused you to miss several weeks of work, you may be entitled to lost wages. However, if the statute of limitations in your state is two years and it’s been three years since the accident occurred, you will likely be unable to recover any compensation.

In Conclusion

In most cases, it’s better to try to negotiate a settlement with the other party before filing a lawsuit. This is because it’s often quicker and cheaper than going to court, and you have more control over the case’s outcome.

Filing a lawsuit is only required if you cannot reach an agreement through negotiation. Remember that litigation can be costly and time-consuming, but it may be the only way to get the compensation you deserve. Ensure to hire an experienced and qualified lawyer to assist you if you decide to take this route.