Whether or not you can still file a lawsuit after settling for compensation will depend on which insurance company you settled with. While you might be able to sue after settling with your own insurance, our lawyers can determine if anything will jeopardize your rights.
Depending on your insurance, you might be able to sue the other driver’s insurance provider to cover the damages your insurance did not. Before settling, an at-fault party’s insurance company will want you to sign a release of liability in exchange for paying your damages. A release is a contract between you and the insurance company stating that you are satisfied with the compensation for the accident. Once you sign their release, you typically cannot sue for the same incident. However, we can help you file a lawsuit if the defendant fraudulently induced you into accepting a settlement or we discover other liable parties.
Contact Agrapidis & Maroules, P.C. at (201) 777-1111 for a free case evaluation with our New Jersey personal injury lawyers.
Can I Still File a Lawsuit After Settling with an Insurance Company in New Jersey?
After getting injured, you might need to deal with multiple insurance companies because of New Jersey’s “no-fault” insurance rules. You will first deal with your own insurance company under a no-fault system. Your “first-party” insurance, or “PIP,” will cover medical damages and some of your lost wages. After settling with your insurance provider, you might be able to sue, but only if your insurance has an “unlimited right to sue” clause or you suffered serious injuries. Speak with our skilled personal injury attorneys in New Jersey before signing any documents from an insurance company and learn what to do next. If you meet one of the exceptions above, we can help you pursue damages from the at-fault driver’s insurance after settling with your insurance company.
Drivers are not required to carry liability insurance in New Jersey if they have a “basic” policy, so there might not be an insurance company with which to settle. Instead, we can sue the driver directly. If the other driver does have liability insurance, negotiating a settlement with their provider is typically the next step.
If the at-fault driver’s provider agrees to pay your damages, it will insist that you sign a release from liability before settling the claim. This document releases the negligent party from future liability or damages regarding the accident in which you were injured. Thus, you will generally be unable to sue for a particular accident after accepting a settlement from their insurance. After all, defendants and insurance companies would have little incentive to pay your losses if they could still be held liable later in court.
How Does a Release Work in a New Jersey Insurance Settlement
The release will almost certainly contain language stipulating that you accept the money offered for your damages as satisfaction for the claim. Essentially, the release will state that you are waiving any legal rights to pursue damages from the defendant or their insurance beyond this compensation for this accident. The release will also usually include the compensation it covers, such as economic and non-economic losses.
A settlement is a contract between you and the at-fault driver’s insurance company, and once accepted, it is binding. Even if you end up with additional damages or discover that the amount of pain and suffering in your case should have been higher, you will not be able to sue for the same incident.
The law assumes that injury victims will take every measure available to ensure that they recover the losses a negligent person caused. We can gather records to evaluate your damages, review the scope of the release to ensure it covers what you need, and explain how to file a lawsuit if the settlement is less than you deserve.
When Can I Sue After an Insurance Settlement in New Jersey?
While your options to sue might be limited if you accept an insurance settlement, you should still consult our team. There are a few situations where a signed and accepted settlement will not prevent you from filing a lawsuit. Because a settlement release is a contract, it must meet all the basic requirements for contract formation and entered into by the parties in good faith. An insurance settlement will usually not preclude you from suing other liable parties if other potential defendants are identified.
Fraud
The release can be invalidated if the defendant or insurance company used fraud to induce you into accepting a settlement. As mentioned, all parties to a contract must be entered in good faith. The other party cannot lie, trick, or conceal information important to deciding the settlement. If the concealed facts or fraud would have caused you to reconsider the agreement, the release should not be held against you.
For instance, perhaps the defendant told you they only had one source of insurance available, which you exhausted in your settlement but did not cover all your losses. Sometime after signing the release, you learn that the defendant has other insurance that would have helped, but they knowingly withheld that fact. In these situations, we can help you pursue compensation that should have been made available at the start of the settlement negotiations.
Other Defendants Available
A settlement release typically excuses one party from liability. If multiple people shared fault for your injuries but you only settled with one of them, you can likely still sue the others to cover the rest of your damages. Unless the release specifically includes all liable parties, individuals who were not party to the settlement can still be held liable in a separate settlement process. For example, if two drivers share fault for your car accident, we can sue both but will usually negotiate separately with each one’s insurance provider.
However, you cannot be paid twice. Perhaps you settled your claim with one defendant for 50% of your damages. If you sue a second defendant and the court finds them 60% at fault, you will only get the 50% you still have not been paid.
Call Our New Jersey Personal Injury Attorneys Today for Help Negotiating the Settlement You Deserve
To get your free case review with our Fort Lee, NJ personal injury attorneys, call Agrapidis & Maroules, P.C. today at (201) 777-1111