Lawsuit Checks & Balances

The most effective lawsuit check & balance system is referred to as a "Hi-Lo" system. By statutory mandate, both plaintiffs and defendants become liable for legal costs and expenses of the opposing party if refusing to accept a reasonable settlement offer. For Plaintiffs, reasonableness is defined as refusal to accept a settlement offer equal to above the amount of the final verdict. For Defendants, unreasonableness is defined as the refusal to accept an offer to settle equal to or below the amount of the final verdict. All plaintiff bar associations encourage Hi-Lo statutes and voluntary high low agreements before trial. Insurance companies and lobbies for insurance companies vehemently oppose Hi-Lo agreements.

Lawsuit Checks & Balances - Personal Injury Law :

When evaluating any civil damage claim, state personal injury law frequently governs when a cause action may be pursued, the extent of civil responsibility, what recoveries are permitted, and how a cases are presented at trial. Less often, federal statutes may preempt state laws and require lawsuits to be filed the federal district court or one of a wide assortment of federal administrative law proceedings, or occasionally allows plaintiffs to opt for either federal or state court systems. In all civil damage lawsuits, settlement of civil liability claims before trial is strongly encouraged by judges to promote judicial economy. For plaintiffs, settlement of lawsuits is permissive, and may be more advantageous than trial. Settling lawsuits reduces risk, guarantees the recovery amount, should be contingent upon collection, and saves time, attorney fees, and litigation costs. The greatest advantage of trial is economic - plaintiffs may receive substantially larger awards in civil damage lawsuits from court or jury verdicts than settlement offers.

Application of Law:

The evaluation of facts and applicable personal injury laws is a dynamic process, based upon circumstances that are personal to each case. Statutes, cases, and rules of evidence and procedure all impact the ultimate success or failure of each case. Lawyers who specialize in civil damage lawsuits for plaintiffs interpret laws in the light most favorable to their client when establishing liability, injuries, compensability, and settlement terms. Similarly, defense lawyers and insurance adjusters are professionals who are equally talented in influencing settlement of civil damage claims far below the true trial value when claimants represents themselves.