Insurance Companies Love The Threat Of A Trial, But Hate Trials
Michael Babboni
Insurance Coverage
Unfortunately, when it comes to getting a legal resolution in a dispute, many aspects of the law are expensive. Some are so expensive that they are beyond even average Americans' financial means if it means a long, expensive trial.This is one of the reasons why it is often companies or the wealthy that "wage war" with lawsuits against each other. However, there is one area where this can really hurt the average American, and that is when it comes to trials seeking compensation when someone else has hurt you.
A War Of Attrition
In a typical, non-criminal legal proceeding, such as a long, drawn-out divorce that needs resolution child custody, the only people who really win are the lawyers for both sides. That's because lawyers in these situations typically work under a system known as "billable hours." That works exactly the way it sounds in that for every hour a lawyer has worked on your behalf for a case, that is an hour you will eventually be billed for. Added onto this are the ongoing expenses of a court case, the paperwork, conducting research and interviews, securing witnesses, and sometimes even expert testimony, all of which the client ultimately pays for to win the case.
Businesses have, for all intents and purposes, a "bottomless" legal budget. Whether it costs tens of thousands, or hundreds of thousands of dollars, a business can pay these legal fees easily. Where insurance companies can take advantage of this is in knowing the average American doesn't enjoy the same sizable "war chest" for protracted legal battles.
In this way, big businesses often intimidate Americans by hinting that the cost of trying to keep a legal case going all the way to court may bankrupt a private citizen. Accepting defeat may save a bank account while trying to fight for what's right may empty it.
The Personal Injury Difference
However, for personal injury cases, things are different. Whereas other civil cases require paying a lawyer, and criminal cases require either paying a good lawyer or accepting a "free" one assigned to the case, personal injury cases can get skilled, experienced lawyers regardless of available funds. The reason for this is that personal injury cases work on a "contingency fee," meaning the lawyer only gets paid if the case ends in a win.
At this point, with an experienced lawyer, the threat of a trial goes from intimidating the accident victim to intimidating the big business. A big business knows evidence presented in a trial can hurt it, especially reputation-wise. Companies understand how bad it is for public relations if they appear to be a bully trying to cheat someone out of their rightful compensation, and a very public trial is a PR nightmare in this regard if the case is strong.
If you've been injured due to someone else's negligence and the other party's insurance company is trying to give you less than you deserve, talk to a personal injury attorney. Even the threat of a trial can lead to a better settlement with an experienced lawyer negotiating.