Can a lawsuit be reopened after settlement

Settling a personal injury claim is often seen as the final step in securing compensation, but there are situations where reopening the case may be necessary. If new evidence comes to light, injuries worsen unexpectedly, or legal errors occurred, victims may have the right to seek further compensation.

Once a settlement is signed, it usually includes a release of liability, preventing future claims. However, fraud, procedural mistakes, or breaches of the agreement can provide legal grounds to challenge the settlement. Understanding these exceptions is crucial for those who feel their compensation was unfair or incomplete.

Reopening a case is complex and requires strong justification, often necessitating legal intervention. If you suspect your settlement was mishandled or does not reflect the full extent of your losses, knowing your legal options is essential.

This article will explore the circumstances under which a personal injury settlement can be reopened and what steps to take next.

Understanding the Personal Injury Claims Process

Before discussing the grounds on which a personal injury claim can be reopened after settlement, we must first discuss personal injury claims process which entails the following steps:

Seek Medical Attention and Document Injuries

Seeking medical attention is the first and most crucial step after an accident. Even if injuries seem minor, a medical evaluation ensures that any hidden issues, like internal bleeding or concussions, are identified and treated.

Medical records also serve as vital evidence in a personal injury claim, linking the injuries directly to the accident. Because you will be required to prove that your injuries were caused by the accident. 

In Topp v. Leffers, 838 N.E.2d 1027 (Ind. Ct. App. 2006), the plaintiff did not go to the hospital immediately after the accident and subsequently complained of pain, but later on, her doctors could only conclude that the accident only probably aggravated her pre-existing condition and therefore, the court determined that there was no direct causation between the accident and her previous injuries. 

In addition to seeking treatment, documenting injuries with photos and keeping copies of medical bills, prescriptions, and doctor’s notes strengthens your case. Insurance companies and courts rely on this evidence to determine compensation. Without proper documentation, proving the extent of injuries and securing fair compensation becomes much harder.

Gather Evidence and Report the Incident

Gathering evidence and reporting the incident are essential steps in building a strong personal injury claim. Evidence such as photos of the accident scene, vehicle damage, road conditions, and visible injuries can help establish what happened.

Witness statements and surveillance footage, if available, can further support your case. However, if you intend to rely on witness statement, you must ensure to get the contact details of your witness and remember that third-party witnesses are more credible.

Reporting the incident to the relevant authorities, such as the police or a property owner, ensures there is an official record. A police report can be crucial in proving fault, especially in motor vehicle accidents. Without proper documentation, insurance companies may dispute liability or downplay the severity of your claim.

Notify the Insurance Company and File a Claim

Notifying the insurance company as soon as possible is crucial after an accident. Most insurers have deadlines for reporting incidents, and delays can weaken your claim.

In Muncie v. Insurance Co., 253 N.C. 74, 116 S.E.2d 474 (N.C. 1960), the Supreme Court of North Carolina held that when an insurance company, in its policy, specifies that an insurer be given notice as soon as practicably possible, such provision will be valid and must be enforced. When filing, provide accurate details about the accident, including the date, location, and parties involved.

Submitting supporting documents, such as medical records and photos, strengthens your case. Be cautious when speaking with insurance adjusters, as they may try to minimize your payout.

If you're unsure how to proceed, consulting a lawyer can help ensure your rights are protected and that you receive fair compensation for your injuries and damages.

Negotiate a Settlement

Once your claim is filed, the insurance company will review the evidence and may offer a settlement. This initial offer is often lower than what you deserve, so negotiation is key.

Presenting strong documentation, such as medical bills and repair estimates, can justify a higher settlement amount. An attorney can always handle negotiations on your behalf, ensuring you don’t accept an unfair offer.

If negotiations are successful, you’ll receive compensation without going to court. However, if the insurer refuses to offer a fair amount, you may need to consider legal action to pursue the full value of your claim.

File a Lawsuit if Necessary

If settlement negotiations fail, filing a lawsuit may be necessary to pursue fair compensation. This step formally brings your case to court, where a judge or jury will determine the outcome.

Your attorney will present evidence, call witnesses, and argue your case to prove liability and damages. Lawsuits can take months or even years, but they may result in higher compensation than an insurance settlement.

While litigation is a last resort, it ensures you have a legal path to seek justice. A skilled lawyer can guide you through the process and fight for the compensation you deserve.

What Circumstances Warrant a Case Reopening?

Once a case is finalised, either through a lawsuit or a settlement, the liable party is typically released from liability by the injured party who signs a release of liability. However, as we have established, although it is difficult, there are certain circumstances that will allow the injured party to reopen the settlement.

Those circumstances include:

When New Evidence is Discovered

If new evidence emerges after a settlement, it may provide grounds to reopen the case. This evidence must be significant enough to impact the original outcome, such as surveillance footage, witness testimony, or medical reports proving greater injury severity.

Courts typically require that the evidence was not reasonably discoverable before the settlement. If proven, the injured party may have a chance to renegotiate or file a motion to reopen the case.

However, reopening a settled case based on new evidence is challenging, requiring strong legal arguments and court approval. Consulting an attorney is essential to assess the feasibility of this claim.

If there was Fraud or Misrepresentation

If a settlement was reached based on fraud or misrepresentation, it may be possible to reopen the case. In Jain v. State Farm Mutual Automobile Insurance, 130 Wn. 2d 688, 130 Wash. 2d 688, 926 P.2d 923 (Wash. 1996), a dissenting judgement at the Supreme Court of Washington clearly restated that a release is voidable if it was induced by fraud or misrepresentation.

Fraud or misrepresentation in these instances could happen if the at-fault party or their insurer intentionally withheld crucial information, falsified records, or misled the victim about key facts. But proving fraud requires clear evidence that the deception directly impacted the settlement decision.

Courts take such claims seriously, but they also require strong proof before overturning an agreement. If fraud is suspected, an attorney can help gather evidence and file the necessary legal motions. Acting quickly is crucial, as statutes of limitations may apply to fraud-based claims.

Following Legal Errors or Procedural Issues

Legal errors or procedural issues can sometimes justify reopening a personal injury settlement. If a court or attorney made a significant mistake—such as misapplying the law, failing to file essential documents, or overlooking crucial evidence—it could impact the fairness of the settlement.

In some cases, improper legal procedures may have denied the injured party a fair chance to seek full compensation. To challenge a settlement on these grounds, a thorough legal review is necessary.

It is however crucial to remember that a court may be reluctant to approve the reopening of a closed settlement on procedural grounds, therefore the issue must be such that it was unavoidable and material to the outcome of the settlement.

Severe Worsening of Personal Injuries

A personal injury settlement may be reopened if the victim’s injuries worsen significantly after the case is resolved. Some injuries may appear minor at first but later develop into severe, long-term conditions requiring extensive medical treatment.

If the initial settlement did not account for these unexpected complications, the victim may seek to challenge the agreement. However, reopening a case on this basis is difficult and typically requires medical documentation proving that the condition worsened beyond what was initially expected.

Legal guidance is essential to determine if the circumstances justify a new claim for additional compensation.

Breach of Settlement Agreement

A settlement agreement is a binding contract, and if one party fails to uphold its terms, the case may be reopened. For example, if the at-fault party or their insurer refuses to pay the agreed-upon amount or delays payment unreasonably, legal action may be necessary.

A breach of the settlement agreement can give the injured party grounds to seek enforcement or renegotiate the terms. Courts may allow the case to be reopened to address the violation and ensure fair compensation.

Conclusion

Reopening a personal injury case after settlement is challenging, but certain circumstances may allow it. New evidence, fraud, legal errors, worsening injuries, or a breach of the agreement can justify reopening a claim. 

At The Accident Helpers, we connect you with experienced attorneys who can evaluate your case and explore your options. Our services are free, making it easier for you to get the legal guidance you need

So contact us today, to ensure you get the expert help you need!