Understanding the difference between a settlement and a trial is essential for claimants navigating the personal injury system. While both routes aim to resolve the dispute, they differ in terms of process, timing, control, and risk.
What is a settlement in a personal injury claim?
A settlement is an agreement between the injured person (the claimant) and the other party (the defendant, often represented by an insurer) to resolve the case without going to court. In exchange for a financial payment, the claimant agrees not to pursue the case further.
Settlements can be:
- Pre-litigation – reached before court proceedings are issued.
- During litigation – agreed after proceedings have started but before trial.
- Trial – finalised just before the trial is due to begin.
In the UK, most personal injury claims settle out of court—often upwards of 95%—because both parties usually prefer to avoid the cost and uncertainty of a trial.
What is a trial?
A trial takes place when a settlement cannot be reached and the case proceeds to a court hearing. A judge will hear the evidence, evaluate witness and expert evidence, and will make a legally binding decision.
At trial, the judge decides:
- Whether the defendant is legally responsible (liability) and/or
- How much compensation the claimant should receive (quantum).
Trials are governed by the Civil Procedure Rules (CPR) and involve formal case management, witness statements, expert evidence, and court hearings.
Key differences between a settlement and a trial
Control and Certainty
- Settlement: The claimant and defendant have control over the outcome. Both must agree to the terms. This provides a degree of certainty, as the claimant knows exactly how much they will receive.
- Trial: The outcome is determined by a judge. There’s no guarantee the claimant will win or be awarded the amount they believe they deserve.
Time and Cost
- Settlement: Usually quicker and more cost-effective. It avoids the additional legal fees, court costs, and delays associated with a full trial.
- Trial: Can be lengthy and expensive, particularly for complex cases involving expert witnesses. Legal costs increase significantly the further a case progresses. There can also be various time delays with the court.
Risk and Stress
- Settlement: Both sides can walk away with a known outcome from a settlement. It can also be less stressful for claimants, avoiding the pressure of giving evidence in court.
- Trial: Higher risk. There’s always the chance of losing, receiving less than expected, or incurring costs if the claim is unsuccessful or previous offers not beaten. However, there is also then the possibility of receiving more than expected but this would come with the same risk.
Finality and Appeals
- Settlement: Final and binding once agreed. There would usually also be an agreement of no future claims related to the injury.
- Trial: The losing party may appeal, leading to further delays and uncertainty.
When might a personal injury case go to trial?
Although most claims settle, a trial may be necessary when:
- Liability is denied and the parties cannot agree on who is at fault.
- The value of the claim (quantum) is in dispute.
- The defendant offers an unreasonably low settlement.
- There are complex legal issues requiring judicial interpretation.
Approval hearings
Even if a settlement has been reached by the parties, there are circumstances that would require the settlement to be approved by a judge in an Approval Hearing.
This is the case when the claimant is either a child or someone who lacks capacity (a protected party). This is to ensure that a fair and just settlement has been reached for the Claimant.
Should you settle or go to trial?
The decision depends on the strength of your case, the offers made, and your personal priorities. Your legal team will advise you on the merits of any settlement offer and whether it is in your best interests to accept or proceed to trial, but the final decision will always be with the client.
Under the Civil Procedure Rules, parties are encouraged to explore settlement early, often through Alternative Dispute Resolution (ADR) such as negotiation or mediation, to avoid unnecessary court time and costs.
How Moore Barlow can help
Whether you’re seeking a fair settlement or preparing for court, it’s essential to have experienced legal advice to ensure your rights are protected and your compensation is maximised.
Caprice Kent is a Solicitor within the Moore Barlow Serious Injury team who specialises in accessing rehabilitation, securing interim payments and recovering compensation for those who have suffered serious injury to help them rebuild their lives. Contact our Serious Injury Team on Freephone 0800 157 7611 or by email claim@moorebarlow.com.
Moore Barlow Serious Injury Team are ranked as a top Tier 1 team by Legal 500 and top Band 1 by Chambers & Partners for personal injury. They are also accredited by leading brain injury charities Headway, UKABIF, and Child Brain Injury Trust. As well as being a legal panel member of RoadPeace the national charity for those killed or seriously injured on our roads.
