Settlement FAQs

can i sue a third party after a settlement

by Cathrine Durgan Jr. Published 3 years ago Updated 2 years ago
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If you find yourself asking, “Can I still sue after a settlement?” your best and most realistic option might be filing a separate claim against a third party. Of course, whether there is another liable party will depend entirely on the specific circumstances of your claim.

You generally cannot sue someone after you have accepted the settlement funds, even if you experience additional damages that you had not anticipated.Nov 14, 2019

Full Answer

Can you sue after reaching a settlement?

You usually cannot sue after reaching a settlement, but there are some exceptions to this rule. If you were injured in an accident and are being offered a settlement, it is important to contact an experienced personal injury lawyer in Phoenix for legal help.

Can I file a lawsuit against someone for the same injury?

However, sometimes settlements say you agree to give up all potential claims against anyone for the injury you suffered. This would prohibit you from filing a lawsuit against another party over the same injury.

Can I file a lawsuit against a third party for an accident?

However, it is possible that you will find a third party was partially responsible for your accident and you did not initially know about this. For example, an automobile manufacturer could be found to have produced a defective part with a known defect that contributed to your accident. You may still have time to file a lawsuit against this entity.

Can I still file a claim after my claim has been settled?

If you have already settled your claim against one party, you might still be able to file a claim against another party. Since you might lose any right to pursue additional compensation after accepting a personal injury settlement, it is important that you take all steps to protect your rights before you accept a settlement, including:

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How can I protect my settlement money?

Separate Your Settlement: Keep all settlement money separate from other funds. This means you must deposit it in a completely different account from your savings, paycheck, an inheritance, or any other money you have. Set up a separate bank account where you keep settlement money and nothing else.

Can you sue the same company twice?

No. If you settled, you executed a release. If you went to trial it is res judicata.

What happens after a claim is settled?

After a case is settled, meaning that the case did not go to trial, the attorneys receive the settlement funds, prepare a final closing statement, and give the money to their clients. Once the attorney gets the settlement check, the clients will also receive their balance check.

Can I ask for more money on a settlement?

Making Sure a Settlement Provides the Compensation You Need It is very important to determine an accurate value for the damages you suffered before agreeing to a settlement. It is unlikely you will get another chance to seek compensation after agreeing to the settlement.

Can you reopen a case after settlement?

You cannot reopen a case once it is settled or compromised. However, if there are any new offence committed by them, you can register an FIR or file a complaint before the court.

What happens if you win a lawsuit and they can't pay?

The sheriff or constable will bring you a copy of the execution and take your car or put a lien on your house. If the creditor wants you to pay them money, they can take you back to court on a Supplemental Process to “garnish your wages.” They can take money out of your paycheck before you get paid.

Do Lawyers lie about settlements?

Lawyers lying about settlements in trial or providing a false statement is not unheard of. However, according to rules of professional conduct, anything said in a settlement conference is confidential and inadmissible during trials.

How long does it take to get paid after a settlement?

While rough estimates usually put the amount of time to receive settlement money around four to six weeks after a case it settled, the amount of time leading up to settlement will also vary. There are multiple factors to consider when asking how long it takes to get a settlement check.

Can my lawyer cash my settlement check?

While your lawyer cannot release your settlement check until they resolve liens and bills associated with your case, it's usually best to be patient so you don't end up paying more than necessary.

What is the average settlement agreement?

The rough 'rule of thumb' that is generally used to determine the value of a settlement agreement (in respect of compensation for termination of employment) is two to three months' gross salary.

What is a good settlement percentage?

When you're negotiating with a creditor, try to settle your debt for 50% or less, which is a realistic goal based on creditors' history with debt settlement. If you owe $3,000, shoot for a settlement of up to $1,500.

How much should I ask for a settlement?

A general rule is 75% to 100% higher than what you would actually be satisfied with. For example, if you think your claim is worth between $1,500 and $2,000, make your first demand for $3,000 or $4,000. If you think your claim is worth $4,000 to $5,000, make your first demand for $8,000 or $10,000.

Can you sue for libel twice?

The "Single Publication Rule." It's important to note that in most states, even if the statement is later repeated or republished, the statute of limitations "clock" doesn't reset, and the plaintiff (the subject of the statement) doesn't have a legal right to bring another, separate defamation lawsuit.

Can I sue two different people for the same thing?

You can sue more than one defendant for the same incident or contract. But each defendant must have some actual interest in the subject of your case and must be (at least arguably) responsible somehow for your injury.

When You Can File a Lawsuit After a Settlement Offer

In some rare exceptions, you may still be able to file a lawsuit after agreeing to a settlement. This includes:

What to Do Before Accepting a Settlement Offer

The implications of agreeing to a liability release as part of a settlement can be significant. For instance, if you discover that your injuries were worse than you initially thought, it may be too late. That’s why it’s so important that you take all the necessary steps to protect your rights before signing the waiver. This includes:

Is a settlement agreement air tight?

Certainly, if your settlement agreement was prepared by a large insurance company , the language was likely drafted to be “airtight.”

Can you file a lawsuit against the same person based on the same accident?

While the settlement agreement will prohibit you from filing another claim or lawsuit based on the same accident or set of facts, it won’t prohibit you from making a claim against the same person / company based on an entirely separate incident.

What to do if you have been offered a settlement?

If you have been offered a settlement for your accident claim, it is important that you speak to an experienced personal injury attorney before signing a release of liability. A skilled lawyer from Phillips Law Group can ensure that you understand the full extent of your injuries and the possible ramifications of signing a release.

How to maximize the value of a settlement offer?

Because the potential stakes of accepting a settlement offer are so high, there are certain steps you should take to maximize the value of your claim: Seek medical attention – Get medical treatment as soon as possible after the accident to determine the full extent of your injuries.

Why do people underestimate the value of their injury?

Consider the long-term consequences of your injury – Many personal injury victims underestimate the value of their claim because they fail to consider the long-term consequences of their injury. They may not be able to return to work after a serious injury, or they may experience pain and suffering that interferes with other aspects of their claim. An economic expert can calculate your expected earnings before and after the accident so that you can pursue compensation for the difference.

What is a release of liability?

This document states that you are receiving a certain amount of compensation in exchange for forfeiting your right to further pursue the claim.

Can you sue someone else for a defective product in Arizona?

For example, in a motor vehicle accident, there may be two motorists at fault for the accident or you later discovered that a defective product could have contributed to the accident. When you release the claim against one defendant, you still have the right to sue anyone else who shared fault in the accident as long as it is done before Arizona’s two-year statute of limitations expires.

Can you sue after a settlement?

You usually cannot sue after reaching a settlement, but there are some exceptions to this rule. If you were injured in an accident and are being offered a settlement, it is important to contact an experienced personal injury lawyer in Phoenix for legal help.

Can you reopen a settlement offer if it was fraud?

If the settlement offer was the result of fraud or bad faith, you may be able to reopen the claim if fraud is later discovered. However, this is very difficult to prove. You may want to consider consulting with an experienced lawyer if you suspect fraud may have been involved.

How to settle a personal injury claim?

Contact a licensed personal injury lawyer who can advise you of your rights and ensure the settlement is fair. Receive a full diagnosis from a medical provider. Reach maximum medical improvement before considering a settlement. Add up all of the damages you have already sustained because of the accident and estimate your future expenses.

What to do after accepting a personal injury settlement?

Since you might lose any right to pursue additional compensation after accepting a personal injury settlement, it is important that you take all steps to protect your rights before you accept a settlement, including: Contact a licensed personal injury lawyer who can advise you of your rights and ensure the settlement is fair.

What does it mean when you receive a settlement?

Your settlement indicates the close of your case when you sign a waiver of release.

Can you sue after a settlement?

Another way you can still sue after you have reached a settlement in a case is when there are multiple parties responsible for the accident. Unless your agreement states otherwise, you are only releasing one party from liability. If there are other parties whose negligence contributed to your injuries, you may still have viable claims ...

Can you set aside a waiver of release?

If you were forced to sign the waiver of release, you may be able to set it aside. Likewise, if your agreement was due to fraud on the part of the other party or his or her representative, you may be able to set aside the agreement because you were not given accurate information.

Can you backtrack a claim if you find out your injuries were more extensive than you believe?

So, if you later find out that your injuries were more extensive than you believe, or that your claim was worth much more than you received in settlement funds, your case is closed and you cannot backtrack.

Can you file a claim against a car manufacturer for a multi vehicle accident?

For example, if you were injured in a multi-vehicle accident, you may have a claim against all drivers who crashed into you. Similarly, if defective tires were involved in the case, you might have a separate claim against the manufacturer of the tires even if you settle the claim against one of the negligent drivers.

Who is liable for third party workers compensation?

Contractors and subcontractors may be liable for third party workers compensation claims; especially in the construction industry.

Can an employer make their own demand in a third party lawsuit?

In addition to the injured employee’s claims, employers can make their own demand in a third party lawsuit.

Can a third party claim pain and suffering?

To claim pain and suffering, loss of consortium, and punitive damage s, the injured worker must seek a third party lawsuit agreement through an independent personal injury lawsuit. That can include a negligent worker, a defective product manufacturer, or any other third-party that should be responsible.

Can an employee file a claim against their employer for negligence?

Employees generally cannot file a direct claim against their workplaces for negligence.

Can third parties be liable for an accident?

Third parties can be liable for different reasons that depend on your state’s liability laws and how the accident happened.

What is a third party worker's comp claim?

Workers’ comp provides medical and wage replacement benefits, but doesn’t pay for other damages, like pain and suffering. When a person or company not connected with your employer caused your injuries or illness, they are called a third-party. Even if you’re getting worker’s comp benefits, you have the legal right to file a personal injury claim ...

What happens if you work on a property not owned by your employer?

If you are working on property not owned or managed by your employer, you may have grounds for a personal injury case against the property owner if you are hurt because of dangerous conditions on the property.

Can insurance companies get back what they spent on you?

Most states allow insurance companies, including your medical insurance provider and workers’ comp insurance provider, to get back what they spent on you from your settlement with the negligent third-party . This is known as “subrogation.”

Can you recover your wages from a workers comp claim?

Unlike workers’ comp claims, where you can only recover a portion of your lost wages and direct medical expenses, in a lawsuit against a negligent third party you have the opportunity to recover all of your lost wages and overtime, future lost income, the costs of replacement services, and a significant amount for pain and suffering.

Can you win a third party lawsuit if you are injured?

To win a third-party lawsuit, you’ll have to prove the third party was negligent, meaning they did something wrong or failed to do something that would have prevented your injuries. Your lawsuit must prove:

Can you sue a manufacturer for a toxic substance?

You may have the right to file a third-party lawsuit against the manufacturer of a toxic substance that causes an occupational illness or injury. Toxic substances can include poisonous fumes, lead-based paint, asbestos, and other substances which directly or indirectly cause serious injuries.

Can a third party file a wrongful death claim?

Wrongful Death Lawsuits. Family members of a worker who died because of the negligence of a third party have the right to file a wrongful death claim against the third party, in addition to any survivor benefits they may receive from workers’ compensation insurance.

How long can a third party sue in Alabama?

Now, in Alabama, for example, once the statute of limitations expires for the third party, and in most cases a statute of limitations for bringing forward a suit with regard to a third party case, for example, a motor vehicle accident or a products case is usually two years, once the two year statute of limitations has expired in Alabama, the workers’ compensation carrier can bring a lawsuit in their own behalf up to six months after the expiration of the statute of limitations.

What does "third party" mean in the workplace?

So that’s going to acquaint us with a variety of concepts here. One is the inability of somebody injured at work to sue his or her employer, but the term third party is pretty much a term of art, so that generally speaking, third party represents some company or person other than the employer or a co-worker or the worker himself that caused the injury.

What is subrogation in workers comp?

In this episode of Workers’ Comp Matters, host Alan Pierce welcomes Cathy Surbeck to discuss subrogation and liens on third party settlements. Subrogation refers to instances where an insurance company steps into the injured worker’s shoes to sue a third party. They explain the variables involved in these matters and give specific examples of how processes differ in various states.

What does subrogation mean in Pennsylvania?

So what subrogation means in the State of Pennsylvania specifically is that the workers’ compensation carrier has a right to recover all of the monies that they paid out for your injury against your third party recovery.

What is subrogation in insurance?

So before we leave the general topic in defining subrogation, it’s more than just the right of recovery by the insurance company, but subrogation, if you really get into the origin of the term, which I think goes back to Anglican Law or the English Court of Chancery, it’s the ability for somebody or some company to substitute for another.

Can a worker's comp carrier step in their shoes?

The Supreme Court I believe ruled on that matter, that if the injured worker does not wish to bring forward a third party case, the workers’ comp carrier cannot step in their shoes, and/or if it is a self-insured, they cannot step in the shoes . Alan S. Pierce: That seems to be a very minority view.

Can an injured worker bring a lawsuit in Pennsylvania?

But specifically for Pennsylvania though, if the injured worker does not choose to bring forward a third party case when it is available for them, the insurance company cannot step into the shoes of the injured worker in Pennsylvania to bring a lawsuit for themselves , and that is not by statute, but that has been ruled by case law.

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The General Rule: No, You Can’T Still Sue After A Settlement.

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In the vast majority of cases, mutual release agreements are drafted carefully and will be strictly enforced. There are very few situations in which an injured victim can file a claim after a settlement. Do you have any options, then? That will depend on the specific circumstances of your situation. Below, we look at the narrow excepti…
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Challenges Based on The Terms of The Settlement Agreement

  • Most settlement agreements are written with a great deal of forethought and precision, using language that has been upheld in California in the past. Certainly, if your settlement agreement was prepared by a large insurance company, the language was likely drafted to be “airtight.” Occasionally, however, a settlement agreement will be written in a way that is sloppy, vague, imp…
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What If You Got Bad Legal Advice?

  • Unfortunately, arguing that you entered the settlement agreement because of bad legal advice typically won’t be enough to get you out of a mutual release agreement. Depending on the circumstances, you might have a claim against your former attorney(s) for professional malpractice. However, such a claim generally requires more than just a feeling that you should h…
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Settlement in Bad Faith

  • A court may be willing to strike down your settlement agreement if you can prove that the terms were arrived at in bad faith. Examples might include any evidence that the insurance company or the defendant engaged in: 1. Fraud 2. Coercion 3. Duress 4. Threats These situations are rare, and proving bad faith after the fact can be extremely difficult. It isn’t enough merely to argue that yo…
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Filing A New Claim Or Lawsuit Against The Defendant

  • While the settlement agreement will prohibit you from filing another claim or lawsuit based on the same accident or set of facts, it won’t prohibit you from making a claim against the same person / company based on an entirely separate incident. For example, if Bob runs a red light in April and hits Susan’s car, causing injuries, Susan can seek a claim against Bob. Let’s imagine that Susan …
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Filing A Separate Claim Or Lawsuit Against A Third Party

  • Continuing with our example from the previous section, let’s imagine that there were three drivers involved in the April auto accident: Susan, Bob, and Thomas. Susan may have settled her claim again Bob, but that won’t keep her from seeking compensation from Thomas (even if Thomas also has an Oops Co. insurance policy). If you find yourself asking, “Can I still sue after a settlem…
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This Is Why You Need to Be Very Careful About Signing A Settlement Agreement

  • Susan’s situation is not uncommon. Too many accident victims have entered into a settlement agreement only to later learn that their medical bills or other damages are more extensive than they expected (or that they are otherwise entitled to more financial compensation than they realized). Don’t make that mistake. Before you enter into a settlement agreement and forever los…
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The Law Offices of Mickey Fine Will Fight to Get You The Terms You deserve.

  • Don’t face the insurance companieson your own. A Bakersfield personal injury lawyer at The Law Offices of Mickey Fine can protect your interests throughout the claims process. We will fight for a full and fair settlement of your claim. And while we have been able to successfully resolve the majority of our clients’ claims by way of private settlement, if going to court is what it takes to ge…
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What Is Third-Party Liability?

Third-Party Liability in Workers’ Compensation Cases

How Do I Prove The Third Party Was Negligent?

The Right of Subrogation in Third-Party Claims

  • While you’re receiving compensation for the full extent of your damages from the negligent third party, your employer also can. Therefore, in addition to your claims, your employer could also choose to make their demands in the lawsuit. They can demand that the negligent party reimburse them for the compensation they paid to the employee. Typically...
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Contact An Experienced Workers’ Compensation Lawyer

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