Negotiation is a form of alternative dispute resolution. The purpose of negotiation is for the parties to discuss the case outside of court and attempt to agree to a resolution. If they can agree, then both parties can avoid litigation.
Negotiation can help resolve cases faster and at a lower cost than going to trial. This is advantageous for most people, especially if they need money to pay for medical bills after an injury. An attorney can help you negotiate with insurance companies and the negligent parties to get the best outcome in your case.
Alternative Dispute Resolution Methods
Several alternative dispute resolution methods exist, but negotiation is the most common. The others include mediation and arbitration.
The main difference between negotiation, mediation, and arbitration is that mediation and arbitration involve a third party. The third party in mediation suggests a resolution, which is non-binding unless both parties agree. In arbitration, the third party imposes a binding decision.
On the other hand, negotiation is much less formal. The parties negotiate face to face, through their lawyers, and without third-party intervention.
When Does Negotiation Happen?
Negotiation can happen at any point after a legal dispute arises. Some of the most common times for negotiation are:
- During an insurance claim
- Immediately after filing a lawsuit
- During the discovery process
- In the weeks leading up to the trial
In some cases, parties may negotiate up until the jury begins deliberating the case. However, this is less common as the parties have usually already incurred expenses and put in the time to litigate the case.
Benefits of Negotiation
Many people think that they will receive the best outcome in their case if they go to trial. However, this isn’t always true. Negotiation has many benefits, and it can sometimes help plaintiffs achieve a fairer outcome.
Faster Resolution
One of the main benefits of negotiation is that it often leads to a faster resolution. This is important for many personal injury clients. If they need money to pay for bills that are piling up, they might not have the time to wait months or even years to get paid.
Definite Outcome
Another benefit of negotiation is that there is a definite outcome. This predictability is important for many people. There is always a risk of going to trial, no matter how strong your case. By going to trial, you accept the possibility that you could lose or recover less than you deserve.
When you negotiate and accept a settlement, you know exactly what you are going to get. This can decrease the risk of litigation and help give plaintiffs peace of mind.
Increased Compensation
Sometimes negotiation can lead to increased compensation. This surprises many people, but it happens more often than you may think, especially when negotiation happens before discovery.
If you know that there are bad facts that could hurt your recovery, you can expect these to come to light during the discovery process. If you negotiate for a settlement before the other party finds out about this evidence, you could recover more money than if you wait or go to trial.
Cost Effective
Another major benefit of negotiation is that it is cost-effective. Litigation is very expensive. Even though most personal injury lawyers charge a contingency fee, there are many additional costs of going to trial.
Furthermore, the lawyer is more likely to charge a higher fee for litigation. This makes sense since it is more work. Settling a case through negotiation, especially early in the process, is one of the best ways to keep your case costs down.
Do All Cases Involve Negotiation?
Most personal injury cases go through some negotiation and are settled outside of court. However, just because most parties negotiate doesn’t mean that you have to. You are always allowed to reject a settlement offer or refuse to negotiate. However, this could come back to hurt you if you get a worse outcome at trial.
What Happens if Negotiation Fails?
Unfortunately, sometimes the parties negotiate and are unable to agree. When negotiation fails, a couple of things can happen.
The most common outcome is that the case will go to trial. The parties will accept that they cannot agree outside of court and prepare for litigation. They will simply proceed as though there was no negotiation at all.
However, in many cases, negotiations will continue even if they were unsuccessful at first. It is common for the parties to go back to the negotiating table as cases progress. This may be due to discovering unfavorable evidence or realizing that a case is dragging on longer than they expected.
Just because negotiation failed previously doesn’t necessarily mean the parties won’t reach an agreement. In fact, an experienced lawyer can often reignite negotiations or persuade the other side as the case proceeds.
Contact a Charleston Personal Injury Lawyer to Schedule a Free Consultation
If you need help negotiating for compensation for your personal injury claim, our Charleston personal injury lawyer is here to help. Reach out to one of our attorneys at Ty Robinson Personal Injury & Car Accident Law Firm to schedule a free consultation. We can provide you with the leverage you need to engage in meaningful settlement negotiations. Call us at (843) 278-2222.
