Settlement Negotiations Flashcards
6 cards from real accident attorney practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Settlement Negotiations flashcards as text
What is the primary goal of settlement negotiations in an accident case?
Answer: To reach a mutually acceptable resolution that compensates the plaintiff without the cost and uncertainty of trial
Settlement negotiations aim to resolve the dispute efficiently, providing the plaintiff fair compensation while avoiding the expense and risk of trial.
What factors does an accident attorney consider when evaluating a settlement offer?
Answer: Liability strength, severity of injuries, available insurance, medical expenses, lost wages, pain and suffering, and trial risks
A thorough settlement evaluation weighs all elements of damages, the strength of liability evidence, insurance coverage, and the risks and costs of proceeding to trial.
What is a policy limits demand in settlement negotiations?
Answer: A demand that the insurer pay its full policy limit to settle the case, often used when damages clearly exceed the limit
A policy limits demand puts the insurer on notice that damages exceed coverage and that refusing to settle exposes the insured to a potential excess judgment.
What is a confidentiality clause in an accident settlement agreement?
Answer: A provision prohibiting the parties from disclosing the settlement terms to third parties
Confidentiality clauses prevent public disclosure of the settlement amount and terms.
What is a high-low agreement used in accident litigation?
Answer: An agreement setting a minimum payment the plaintiff receives and a maximum the defendant pays, regardless of the jury's verdict
A high-low agreement eliminates the extremes of trial risk: the plaintiff is guaranteed a minimum recovery, and the defendant's exposure is capped at the high figure.
Why might a plaintiff's attorney advise against accepting an early settlement offer?
Answer: The full extent of injuries may not yet be known, and early offers often undervalue the claim before medical treatment is complete
Settling before reaching maximum medical improvement risks undercompensating the plaintiff because future medical needs and permanent impairments may not yet be fully understood.