In many cases, a lawsuit cannot be reopened after settlement. When agreeing to a settlement offer, the plaintiff usually signs a release of liability, which prevents them from pursuing further legal action.
For this reason, it’s important for personal injury victims to explore their legal options and only agree to a settlement offer if it appropriately covers their damages.
Some scenarios may allow victims to reopen a lawsuit after settlement, such as in the event of fraud or misrepresentation. Between the burden of proof and the complex filing system required to reopen a case, working with an experienced personal injury attorney is even more important.
What is a Settlement Agreement?
A settlement agreement resolves a case between the plaintiff and defendant, releasing the defendant from further liability in exchange for agreed-upon compensation.
This agreement typically involves the defendant paying an amount that reflects the case’s value while the plaintiff agrees to end all legal action. A settlement can be a great way for each party to save on legal fees and lengthy court proceedings.
Finality of Settlement Agreements
The purpose of a settlement is to avoid further litigation and court proceedings. The defendant usually agrees to a settlement in return for resolving the dispute and ensuring no further legal action is taken, generally saving money for both parties.
In most cases, a settlement agreement includes a release of liability contract, which prohibits the plaintiff from pursuing further legal action. This binding contract holds up in court.
Settling a case too soon can be a mistake, leading to far less compensation than what you need or deserve. For example, some injuries can worsen over time and require more treatment. An injured victim may also not realize the extent of their injury and how it impacts their ability to work. Ensure you receive a fair settlement by working with a personal injury lawyer.
Circumstances Where Reopening a Personal Injury Claim Might Be Possible
In some situations, including the following circumstances, it may be possible to reopen a personal injury claim after settlement. However, it’s important to note that limited exceptions are available after you and the other party have agreed and signed a release clause.
Here are a few situations where you may reopen a case against the at-fault party.
Fraud or Misrepresentation
A fraud or misrepresentation lawsuit may be eligible for further investigation and negotiations. If any party, including the plaintiff, defendant, or insurance company, believes the case included false statements or deception, they may petition to have the lawsuit reopened.
A few examples of fraud might include falsifying documents, perjury, concealing evidence, or false expert witness testimony.
Mutual Mistake
When both parties in a personal injury case make the same mistake about a material fact, such as the true extent of injuries, this mutual mistake may be grounds for reopening a settled case.
Settlement terms are based on the injured party’s condition, healing likeliness, and total damages. For example, if both parties believed an injury was minor and temporary, but it later proved to be a severe permanent disability that neither party could have anticipated, the settlement might be challenged.
Usually, it’s best to wait until you reach maximum medical improvement (MMI) before agreeing to a settlement offer. Maximum medical improvement refers to a point at which your condition is stable. You no longer require immediate medical attention and fair compensation can be calculated based on your current medical treatment needs.
Otherwise, you may experience future damages that exceed the initial offer. Simply undervaluing damages or settling before reaching MMI isn’t enough – the mistake must be shared by both parties and involve a fundamental fact of the case.
Duress or Undue Influence
A personal injury settlement may be challenged if the plaintiff accepted it under duress or undue influence. Laws prohibit using threats or exploitation to pressure someone into agreeing to a settlement and signing a release of liability contract.
Breach of Settlement Agreement
A lawsuit may also be reopened if the defendant fails to fulfill their contractual obligations. For example, if the defendant fails to pay medical expenses and lost wages as agreed upon based on the contract’s timeline, the lawsuit may become void. The plaintiff may be eligible to reopen the case and seek more money for the inconvenience and delayed payment.
Newly Discovered Evidence
New evidence may also allow for a lawsuit to be reopened, especially if it can substantially change the outcome of the original case. The evidence must have existed at the time of the initial settlement offer but was not discovered until later. If the case is reopened, this new evidence can be used during settlement negotiations to recover a fair settlement amount.
Challenges and Limitations of Reopening a Personal Injury Lawsuit
Even in cases where it may be possible to reopen the personal injury lawsuit, it can be challenging and often requires the expertise of a good legal team. Requiring additional therapy or medical treatment isn’t usually sufficient to request more compensation.
Here are a few challenges you may experience when reopening a personal injury claim.
The Burden of Proof
State and federal courts require sufficient proof to reopen a settled case. The burden of proof is on the plaintiff, meaning you must have a good reason to petition the court to reopen a case after signing a release of liability contract. These reasons include clear evidence of fraud, breach of contract, or a mutual mistake.
Time Limit
The statute of limitations may also apply to a reopened personal injury case. Specific time limits vary, depending on the case type and the state in which you seek financial recovery.
Court Approval
A lawsuit cannot be reopened after settlement unless the court approves. Getting the court to agree that a lawsuit be reopened isn’t a simple task and is one that usually requires strong evidence. Before beginning the process, consider discussing the details of your case with an experienced attorney.
Steps to Take if You Want to Reopen a Case
If you believe you were wrongfully misrepresented or the victim of fraud, you may have a legal right to reopen your case, even if it was settled. Here are a few key steps to improve your chances of a successful claim.
Consult with a Lawyer
Before requesting that a case be reopened after settlement, discuss the viability of your case with a personal injury lawyer. The process of having a lawsuit reopened can be time-consuming and costly, and experienced personal injury attorneys can help you determine whether or not your case qualifies.
Gather Evidence
To reopen a lawsuit, you will need strong evidence. Work with your law firm to gather evidence showing you didn’t receive the full extent of your settlement and why the case should be reopened. Some proof your law firm gathers may include medical records, expert witness statements, or fraudulent documents.
File a Motion with the Court
After gathering the necessary proof, it’s time to file a Motion to Reopen with the court. The motion lists the reason for reopening the case, whether due to new evidence, fraud, or other reasons. It lists the plaintiff’s intent to seek further compensation.
What a Lawyer Can Do for You
Working with a personal injury attorney at the start of your case is best to avoid an unfair settlement offer. However, if your case has already been settled, and you believe it should be reopened, working with an experienced personal injury lawyer is more crucial than ever. Here are a few ways a lawyer can help.
Evaluating Your Case
A full evaluation of your case allows us to choose the best legal path. A settlement offer usually prevents the car accident victim from seeking additional settlement money. However, an experienced lawyer can review your case in detail to determine if you qualify to have it reopened and on what grounds.
Negotiating with the Opposing Party
If your injury claim is reopened, your lawyer and the insurance company will negotiate a new offer to reach a fair settlement agreement. Personal injury claims aim to recover all related expenses, including medical bills, lost income, car repairs, and pain and suffering.
Our legal team calculates the value of your case, considering both the current and future impacts of the accident on your life.
It’s important to reach a fair settlement before signing another release cause, as this removes the other party’s further liability. A settled personal injury claim is unlikely to be reopened, and reopening it a third time is even less likely.
Representing You in Court
If your legal counsel cannot come to a fair agreement with the insurance company, it may be necessary to take the case to trial. Our lawyers are experienced in personal injury law and will represent you in court to secure maximum compensation.
Secure Expert Legal Representation!
Can a lawsuit be reopened after settlement? In most cases, no. However, in a few situations, additional compensation may be available by reopening the case.
A personal injury lawsuit aims to recover compensation for property damage, medical treatment, loss of income, and chronic pain. However, the insurance company doesn’t always represent your best interests, which can leave accident victims without sufficient compensation to cover their damages.
Whether you want to seek compensation through an initial claim or learn if your settled case can be reopened, our legal team is committed to ensuring fair settlements for injured victims.
Contact Rosenfeld Injury Lawyers at (888) 424-5757 for a free consultation today, or fill out our online form.