When someone receives an injury due to another party’s negligence, they often start by filing an insurance claim. However, when negotiations fail to bring forward a fair settlement, the claim may escalate into a lawsuit. Understanding when and how this transition occurs is essential for those seeking compensation in Vermont.
This article explains the stages of a personal injury claim, the factors that lead to a lawsuit, and what plaintiffs can expect during the legal process.
Understanding the Difference: Claim vs. Lawsuit
A personal injury claim is a formal request for compensation made to an insurance company. It is typically the first step in seeking financial recovery for medical costs, lost wages, and other damages. In contrast, a lawsuit is a legal action filed in court when the parties involved cannot reach an agreement through settlement negotiations.
Steps in a Personal Injury Claim
Before a case progresses to litigation, it typically follows these steps:
- Initial Consultation with an Attorney
- After an accident, an injured party may consult a personal injury lawyer to evaluate their case and determine the best course of action.
- Investigation and Evidence Collection
- This phase involves gathering police reports, medical records, witness statements, and other crucial documentation to support the claim.
- Filing an Insurance Claim
- The injured party (or their attorney) submits a demand letter to the responsible party’s insurance company detailing the accident, injuries, and requested compensation.
- Negotiations with the Insurance Company
- Insurers often attempt to minimize payouts by disputing liability or the severity of injuries. Negotiations can take weeks or months, depending on the complexity of the case.
- Settlement Offer and Decision
- If the insurer offers a fair settlement, the case ends here. If not, the injured party must decide whether to accept the offer or escalate the matter.
When Does a Claim Turn Into a Lawsuit?
A claim becomes a lawsuit when the injured party (plaintiff) files a complaint in court. This typically happens under the following circumstances:
The Statute of Limitations is Approaching
Vermont law imposes a three-year statute of limitations on most personal injury cases (12 V.S.A. § 512). This means that if a claim is not settled within three years of the accident, the plaintiff must file a lawsuit to preserve their right to compensation.
The Insurance Company Denies Liability
Insurance companies often reject claims by arguing that their policyholder was not responsible for the accident. In such cases, the injured party may have no choice but to take legal action.
The Settlement Offer is Too Low
If the insurer provides a lowball settlement that does not cover medical bills, lost wages, or long-term rehabilitation costs, the injured party may opt to sue to seek a more appropriate amount.
The Insurance Policy Limits Compensation
Some claims exceed the at-fault party’s insurance coverage. For example, if a driver carries only the minimum required liability insurance and the victim’s damages surpass that amount, the plaintiff may need to file a lawsuit against the individual directly.
Bad Faith Insurance Practices
If an insurance company acts in bad faith tactics, such as delaying payments, misrepresenting policy terms, or unfairly denying a valid claim, the injured party may have grounds for legal action beyond the initial personal injury claim.
The Lawsuit Process in Vermont
Once a lawsuit is filed, it follows a structured legal process:
Filing the Complaint
The plaintiff’s attorney drafts a complaint outlining the allegations against the defendant, including details about the accident, injuries, and requested damages. The complaint is filed in the appropriate Vermont court, typically the Superior Court in the county where the injury occurred.
Serving the Defendant
The defendant needs to be formally notified of the lawsuit through legal service of process. They have a limited time (usually 21 days) to file a response.
Discovery Phase
Both parties exchange evidence, conduct depositions, and gather expert testimony to build their cases. This phase can last several months.
Mediation and Settlement Talks
Before trial, courts often encourage alternative dispute resolution (ADR), such as mediation, to reach a settlement without proceeding to court. Many cases settle at this stage.
Trial
If a settlement can not be reached, the case goes to trial. A judge or jury will then listen to the arguments from both sides and determine liability and compensation.
Appeal (If Necessary)
If either party disagrees with the verdict, they may appeal the decision to a higher court.
Key Considerations for Plaintiffs in Vermont
- Comparative Negligence Law: Vermont follows a modified comparative negligence rule (12 V.S.A. § 1036). If the plaintiff is found to be more than 50% at fault, they cannot recover damages. If they are less than 50% responsible, their compensation is reduced proportionally.
- Damage Caps: Vermont does not impose caps on economic or non-economic damages in most personal injury cases, allowing plaintiffs to seek full compensation for their losses.
- Punitive Damages: Can be awarded in cases involving gross negligence or intentional misconduct but require clear and convincing evidence.
Conclusion
A personal injury claim does not always turn into a lawsuit, but when settlement negotiations stall, legal action may be necessary. Vermont residents pursuing compensation should be aware of time limitations, insurance company tactics, and legal procedures.
Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away
Navigating Vermont personal injury claims can be challenging. Fortunately, you don't need to do it alone. The experienced personal injury lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.
Contact us now for a free legal review.