After an accident, many people hear the terms “claim” and “lawsuit” used interchangeably. While both involve seeking compensation for an injury, they are different stages of the legal process. Understanding the distinction can help you know what to expect and make more informed decisions as your case moves forward.
What is a personal injury claim?
Most personal injury cases begin as a claim. As a legal matter, a claim is a demand for compensation based on an injury or loss. In most cases, the injured person first brings that claim to the at-fault party’s insurance company as the first step toward recovering compensation. In preparing a claim, an attorney may:
- Gather evidence to figure out how the accident occurred
- Review medical records and treatment history to assess the extent of the injuries
- Calculate damages such as medical expenses and lost wages
- Communicate with insurance representatives on the victim’s behalf
- Negotiate toward a possible settlement
The goal is to resolve the matter through negotiation without involving the court system. Often, attorneys successfully settle many cases during this stage.
When does a claim become a lawsuit?
When the claims process does not lead to an agreement, an attorney may take the next step and file a lawsuit to continue pursuing compensation through the court system. A lawsuit begins when an injured person files a formal complaint in court. After filing, both sides exchange information, take depositions, file motions and continue discussing possible settlement options.
Even after a lawsuit begins, the parties may still negotiate and reach a settlement before the scheduled trial date arrives.
Is a lawsuit better than a claim?
A personal injury claim and a personal injury lawsuit are different stages of the same legal matter. Some cases settle through negotiation, while others require additional legal action. The best path often depends on the facts of the case, the severity of the injuries and the progress made during settlement discussions.
