When Is a Lawsuit Necessary?
Many personal injury claims are resolved through insurance negotiations without a trial. Sometimes, however, filing a lawsuit is the appropriate way to protect an injured person’s rights, preserve a filing deadline, obtain evidence, or ask a court to resolve a genuine dispute. Filing a case does not mean that a trial is inevitable; negotiations can continue while the lawsuit moves forward.
When Insurance Negotiations Reach an Impasse
An insurer may dispute who caused the incident, question whether an injury resulted from the accident, challenge the amount of medical treatment, or make an offer that does not reasonably account for the documented losses. A lawsuit can create a formal process for exchanging evidence and requiring witnesses to answer questions under oath. It also gives the parties access to court procedures that are not available during an informal claim.
Common Reasons a Lawsuit May Be Filed
- Liability is disputed. The parties disagree about who caused the accident or whether more than one person shares responsibility.
- The extent of the injuries is disputed. The insurer challenges the diagnosis, treatment, future care, or relationship between the accident and the medical condition.
- The available offer is inadequate. Negotiations do not reasonably address medical expenses, lost income, reduced earning ability, property loss, or non-economic harm supported by the evidence.
- Important evidence must be obtained. Depositions, document requests, subpoenas, expert analysis, or an inspection may be needed to develop the facts.
- A filing deadline is approaching. California generally allows two years for an action involving injury caused by another person’s wrongful act or neglect, but shorter deadlines and exceptions may apply. Claims involving public entities can have much earlier administrative-claim deadlines.
Two Examples from Prior Matters
Disputed Fault at an Intersection
In one matter, our client was seriously injured in a T-bone collision while proceeding through a green light. The other driver was alleged to have entered against a red light at an excessive speed, but there were no independent witnesses and the police report did not determine fault. After extended negotiations did not resolve the liability dispute, a lawsuit was filed. The liability carrier later tendered the available policy limit, and the client’s underinsured-motorist coverage was also pursued.
Injuries Disputed After a Rear-End Collision
In another matter, a client was rear-ended at high speed, resulting in substantial vehicle damage and spine injuries. Although the property damage was paid, the liability carrier disputed the bodily-injury claim. Litigation was filed to address that disagreement, and the available bodily-injury policy limit was later recovered. Every case turns on its own facts, insurance, evidence, and law; past results do not guarantee a similar outcome.
What Happens After a Lawsuit Is Filed?
The complaint is filed with the court and served on the defendant, who then has an opportunity to respond. The parties usually enter discovery, which may include written questions, document requests, depositions, medical examinations, and expert review. The court may set conferences, motion deadlines, mediation, and a trial date. Throughout that process, the attorney should explain the important decisions and keep the client informed.
A Lawsuit Can Still Settle
Filing a lawsuit does not end settlement discussions. Many cases resolve during discovery, at mediation, after a significant ruling, or shortly before trial. The decision to accept or reject a settlement belongs to the client after receiving advice about the offer, the evidence, litigation costs, timing, and risks. If no fair resolution is reached, the case may proceed to trial.
Discuss the Timing Before the Deadline
Waiting until negotiations have completely failed can be risky if a limitation period is close. Documents may also disappear, memories may fade, and video may be overwritten. An early legal review can help identify the correct defendant, applicable deadline, available coverage, and evidence that should be preserved. Whether a lawsuit is necessary depends on the specific facts, not simply on the seriousness of the injury.
