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What is an out-of-court settlement?


A: While taking legal action against a negligent party is often the best way to recover the full extent of the damages you sustained in a New Jersey accident, sometimes you can avoid exhaustive court proceedings by agreeing to an out-of-court settlement.

An out-of-court settlement is a resolution that is proposed and completed without courts and judges.
However, if you have retained legal counsel, your New Jersey personal injury attorney will often be involved in the settlement negotiations with the opposing attorney.

The term out-of-court settlement is self-explanatory, but it can be understood in two parts: out of court and settlement. A settlement is the agreed solution that fixes a dispute, usually existing in monetary form. The out-of-court method is less expensive than going to court; therefore, some defendants and insurance companies choose this solution over going to trial.

There are also downsides to out-of-court settlements. For example, the amount of compensation you would receive as part of your out-of-court settlement is typically lower than what you would receive through a verdict set forth by a judge or jury. Hence, considerations for future medical expenses or lost wages are often ignored. 

On the other hand, an out-of-court settlement is faster than a pursuing a personal injury lawsuit and will result in quicker compensation for your medical bills. This is not the recommended approach, however, as you may be surrendering some very important rights.

If you've been injured in a New Jersey accident, your personal injury attorney can investigate your case and determine what type of settlement would be best for you. Overall, not every accident carries the same premise so the settlement may differ.

An out-of-court settlement might be beneficial in some instances while not helpful in others.
An experienced New Jersey personal injury attorney can negotiate on your behalf and speak with you to see which settlement structure payment option is ideal.

Contact White and Williams to speak with an experienced accident attorney who can investigate your case. Call now to schedule a FREE consultation- 1-877-944-8396.

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