Q&A: What percentage of personal injury claims successfully settle?

/ Frequently Asked Questions / / By
Lawsuit settlements lawfuel

The issue of settling personal injury lawsuits is one that occupies the minds of many people given that there are around 400,000 personal injury claims filed every year in the United States.

Out of all of the personal injury cases, motor vehicle accidents were the most frequent causes of injury, making up over half of all cases. The balance (48 per cent) include medical malpractice (15 per cent), product liability injury situation (5 per cent) and the rest comprising all manner of injury.

These statistics show just how much of a range of personal injuries there are. But, clearly, there are far more accidents on the road than there are malfunctioning mobile phones or dodgy dental work!

For claimants, those who are injured and seek compensation, the important issue becomes what to do – file, or settle?

That process alone is a major headache for many given the medical, financial, family and overall emotional distress that can follow any personal injury situation. It requires some careful thought and advice from qualified experts to make the right decision.

It also leads to the question of how many personal injury lawsuits actually settle – and the answer, in broad terms, is the vast major of such lawsuits.


Factors to Consider Before Filing a Claim


Having the guidance of an experienced personal injury attorney is key at this time. While we may have all heard a lot about fees, charges and frustrations in dealing with personal injury law and lawyers, there is a range of issues that require an experienced attorney who can assist in making the key decision about filing a claim for a personal injury lawsuit and – just as important – how and when you should settle such a lawsuit.

There are some key questions you lawyer will want to know, including the following three:


● Was whoever injured you negligent? Can you prove this negligence?
● Are there damages and injuries as a result of this negligence?
● Can you reach the person who caused your injuries? Are they someone who will be able
to pay for your damages?

Answering these questions will help determine the likely success of your claim and whether you should be proceeding with it.

Remember too that of those cases that go to trial, the victim has the opportunity to potentially recover punitive damages, which can significantly affect the ultimate damages that will be received.

But, as with the cases itself, the question of proceeding with the case and succeeding with punitive damages is something that only time – and (hopefully) a good lawyer can do.

What percentage of personal injury cases settle, and how many
go to trial?


Statistics by the US Government show that only some 5 per cent of personal injury cases end up in trial while the rest settle before getting to trial, often settling quickly. Another statistic of interest indicates that, out of those cases that do end up in court, about 90 per cent end up losing.

And the few cases that end up winning in court do much better as far as the amount of compensation received when there is a jury than when the verdict comes from a judge.

One of the key elements in most personal injury cases is insurance. This often has a major effect on settlement.

But so too is the fact that those involve in litigation are quite different from those who are not involved in personal injury litigation, as disclosed in one report involving a cohort of litigants and showing that those with false or exaggerated claims of injury are actually rewarded by the legal system.

What is the main reason why so many personal injury cases end
up settling?

Settling provides the victim with a faster time to get matters out of the way and also to control the negotiations in a way that will achieve a result that all parties can live with.

Trials can take months or even years, whereas a settlement can be achieved in a few short months and there is the chance for the attorney to control the negotiations with less stress than is involved with a personal injury trial and all its uncertainties.

However, the advantage of a trial is receiving a greater amount by way of a damages aware. A settlement necessarily involves a compromise with the removal of the right to go to court and to recover punitive damages, for instance. Even further information that might come to light is something that will have no effect upon what you can get following a settlement.

One of the key elements in most personal injury cases is insurance. This has a major effect on settlement.

The issue of how much insurance the person causing the injury as (the tortfeasor) is an essential element in this process. But how do you find that answer? There are a range of questions here such as whether you are underinsured, what will trigger the insurance cover, the requirement necessary to notify the insurance company of coverage, what torts are covered by the insurance and so forth.


You may find that the other party has an experienced attorney while you are trying to negotiate on your own. Negotiating these cases takes time; it usually involves some back and forth from both parties and, if there is no possibility of an agreement, the case might have to end up in court.

How can you increase your chances of success in personal injury cases?

Settle or Not to Settle

That, of course, is the question and anyone facing that decision obviously needs to have sound legal advice from an experienced lawyer who can help work through the issues surrounding a particular lawsuit.

 Deciding whether or not to settle is a question that varies from case to case. In some cases, the insurance company’s final offer is insultingly low and you’re better off going to court. In other cases, litigation might just be too risky and the insurance company’s final offer is actually fair.

Personal injury lawyers at Maho Prentice, LLP Attorneys at Law recommend getting legal help as soon as possible to ensure that the evidence is still fresh and your lawyer will have time to conduct a thorough investigation and build a strong case. Look for an attorney that will work on a contingency basis if at all possible and ensure that you obtain the best advice you can before making that ‘settle, or not settle’ decision.

Source: Maho Prentice Attorneys

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Mishcon de Reya’s Latest Major Money Move: Litigation Funding

/ Headlining, Law Firms, UK Law / September 9, 2021 / By
London Law

London lawyers Mishcon de Reya, already preparing for a stock exchange float, has started a litigation funding division with Harbour Litigation Funders, one of the largest litigation funding operations in the world.

A report in the FInancial Times says that Harbour is to invest £150m in the new fund which will see Mischon de Reya trim its usual handsome fees in return for the usual litigation funders’ share of proceeds from major class action lawsuits.

Mishcon de Reya Mishcon de Reya is set for £750m London listing and has invested a small amount of partner capital into the venture.

Litigation funding has become increasingly attractive for many investors in the current, low-interest climate, as well as helping to finance otherwise costly legal fights, even for well-heeled corporates. The funded cases will involve major cross-border legal fights and international arbitrations as well as cases in the UK.

The FT report that UK litigation funders had a pipeline of court cases and cash worth £2bn in April, double the sum three years previously.

The new venture with Harbour, called MDR Solutions, and is at least the third law firm to publicly team up with a big litigation funder in about a year. US-based Willkie Farr & Gallagher entered into a $50 million agreement with Longford Capital Management LP and in August 2020, DLA Piper partnered with Litigation Capital Management and a new third-party funder, Aldersgate Funding Limited, led by a former DLA Piper corporate partner. That deal also set out to offer clients access to about $200 million.

Mischcon has been involved in other litigation deals with Harbour, who invested about $200m in Mishcon cases in the past, including a successful trial on behalf of UK businesses claiming insurance payouts for pandemic-related losses.

Richard Leedham, (pictured left) Mishcon’s disputes partner, said winnings on future cases would be used to pay back losses.

He said the unit would operate separately from the firm itself, but Mischon’s 280-lawyer team of litigators and arbitrators, who are based in its London and Singapore offices, would be involved at different times.

Leedham said Mishcon benefited from a history of litigating complex cross-border disputes, which would help it to select cases. “We know how to litigate in different parts of the world and we think we can open up claims that wouldn’t have been traditionally funded,”he told the FT. “We are doing it because we think it will be a commercial success.”

However, the practice of profiting from disputes has also attracted controversy, illustrated by short-seller Muddy Waters’ attack on Burford Capital over its accounting methods in 2019. LawFuel recently reported on Harbour’s pullout from a major New Zealand case against building supplier James Hardie Industries, which created considerable controversy in that country.

The Mischcon move however is bound to add luster to the firm’s forthcoming float – along with its ability to generate healthy fees.

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