March 13, 2025
The Difference Between a Personal Injury Settlement and a Court Award
They say justice is blind, but in the real world, it often comes down to a number on a check. You suffer an injury, your life turns upside down, and then the inevitable question arises—how much is your pain worth? The answer isn’t simple. It never is. Some cases are neatly resolved behind closed doors, a handshake sealing the deal. Others become battles, dragged into courtrooms where a judge and jury hold your future in their hands.
One path offers certainty, the other promises the chance—however small—of something more. However, which one truly serves justice? And more importantly, which one serves you?
1) What is a Personal Injury Settlement
In Florida, a personal injury settlement is an agreement between the injured party (plaintiff) and the at-fault party (or their insurance company) before trial. The defendant agrees to pay a set amount, and the plaintiff drops the lawsuit and waives future legal actions. This resolution takes place outside the courtroom, often through negotiation or mediation, instead of a trial.
Advantages of a Personal Injury Settlement:
Faster Resolution
One of the most significant advantages of a settlement is the speed with which it can be reached. Legal battles can drag on for months or even years if they go to trial. In contrast, a settlement can often be negotiated in a matter of weeks or months, allowing the injured party to receive compensation much sooner. This can be crucial for individuals who need financial assistance to cover medical bills or lost wages from the injury.
Certainty
With a settlement, the injured party has the advantage of knowing exactly how much compensation they will receive. Since both parties mutually agree on the amount beforehand, this provides financial stability and eliminates the uncertainty of a trial. This can be particularly beneficial for the plaintiff, who avoids the risks associated with litigation—where a jury’s decision could result in a higher award, a lower payout, or, in some cases, nothing at all.
Lower Costs
Settlements are generally less expensive than going to trial. Trial preparation involves significant legal fees, court costs, and the expense of expert witnesses. In a settlement, the costs are often much lower, as the process is less formal and doesn't require the same amount of legal and court involvement. For the defendant, settling can be seen as a way to avoid the high costs of defending a trial.
Disadvantages of a Settlement:
Potentially Lower Compensation
While settlements offer quicker resolution, they may result in a lower payout than what could potentially be awarded at trial. The defendant may offer a settlement amount that is less than what a jury might award, especially since the defendant is eager to avoid the time, expenses, and risks associated with a trial. The injured party must carefully consider whether the settlement amount fairly compensates them for their injuries, medical costs, and other damages.
No Public Record
One of the notable aspects of a settlement is that it typically occurs outside the public eye. Unlike a trial, where the details of the case and the outcome become part of the public record, a settlement remains confidential. While this can be an advantage for individuals who prefer to keep the details private, it may also mean that the injured party’s case is not recognized publicly. Additionally, without a trial, there may be less of a chance to establish a legal precedent that could benefit others facing similar situations.
Learn about the legal processes and resources related to personal injury claims from the U.S. Department of Justice - Personal Injury Claims
2) What is a Court Award (Verdict)?
A court award, or verdict, is the final decision made by a judge or jury after a trial. Both the plaintiff and defendant present evidence, witnesses, and arguments to support their claims. If the court finds the defendant liable, it determines the compensation owed to the plaintiff. Unlike a settlement, a court award is legally binding, part of the public record, and subject to appeal.
Advantages of a Court Award
Possibly Higher Compensation: One of the biggest benefits of going to trial is the potential for a higher payout than what was offered in a settlement. If the defendant’s actions were particularly reckless, the court might award significant compensation for things like pain and suffering, lost wages, and medical bills. In some cases, the jury may even impose punitive damages—extra compensation meant to punish the defendant and send a message that such behavior won’t be tolerated.
Public Accountability: A court verdict becomes part of the public record, which holds the defendant accountable. By making liability official, it can have wider effects—like damaging the defendant's reputation or discouraging others from taking similar actions in the future.
Understand civil case processing in personal injury claims from the National Center for State Courts - Civil Case Processing.
Disadvantages of a Court Award
Time-Consuming: Trials can take months or even years to conclude. There is often a significant wait between the initial filing of the case and the final verdict, making it a lengthy process for all involved.
Uncertainty: Unlike a settlement, there is no guarantee of success in court. A jury or judge may award less compensation than expected or may even rule in favor of the defendant. This uncertainty can be unsettling for plaintiffs.
Higher Costs: Trials involve additional expenses, such as legal fees, expert witness fees, and court costs. These costs can add up quickly, making it an expensive route compared to settling outside of court.
Take a look at these related resources for more details
3) Key Differences Between a Personal Injury Settlement and a Court Award
When deciding whether to settle or pursue a court award in a personal injury case, there are several key differences to consider. These differences revolve around resolution speed, certainty, and public record.
Speed Of Resolution
Settlements usually wrap up pretty fast. Since both sides agree on compensation outside of court, you could see a resolution in just a few weeks or months. This is great if you need quick relief for things like medical expenses or lost wages.
A court award takes a lot longer. Trials can go on for months, or even years, depending on the complexity of the case and court scheduling. Plus, if either side appeals the decision, it can delay things even more. The waiting game can be tough, especially when you're dealing with the financial strain of an injury.
Certainty vs. Risk
With a settlement, you know exactly how much you’ll get. Both sides agree on the compensation, so there’s no guessing. It’s a sure thing, which can bring peace of mind, especially when you're counting on that money to cover your bills or recover from your injury.
A court award, on the other hand, is a bit of a gamble. While you may get more than a settlement, there’s also a chance you could get less—or even nothing at all. A judge or jury decides the outcome, so it’s less predictable, and there’s always the risk of disappointment.
Less Stress
The emotional and mental toll of a trial can be significant. Trials can be stressful and time-consuming, requiring long hours of preparation, court appearances, and uncertainty. A settlement offers a way to avoid this stress and allow the plaintiff to move forward more quickly. This can be especially important for those who are already dealing with the physical, emotional, and financial effects of their injury.
Learn about the statistics and outcomes of personal injury cases in the U.S. from the Bureau of Justice Statistics - Civil Justice Data.
Settlement or Court? Robert J. Johnson Can Help You Decide
Choosing between a settlement and a court award depends on your goals and the details of your case. Robert J. Johnson is here to help you understand the advantages and disadvantages of each option. We will go over the factors that matter most to you, whether it's getting a quicker resolution or seeking a higher payout.
With our experience, we’ll help you decide which route to take based on your needs and the specifics of your situation. So, contact us for a free consultation. We’ll help you understand your legal options with expertise, care, and a focus on what’s best for you.
