When you are injured in an accident, dealing with a legal battle is the last thing you want. But unfortunately, a settlement is not enough, and you may want to take further action. But what if you’ve already agreed to a settlement with the insurance company? Can you still file a lawsuit? The answer is yes, but suing them is more complex than if you had never agreed to anything.
What Is A Settlement?
A settlement is a resolution between the insurance company and the policyholder, typically reached outside of court. The insurance company agrees to pay the policyholder an agreed sum to release them from liability. Often, settlements are reached before a case goes to trial. Settlements offer both parties a way to avoid the expense of a trial.
Scenarios Where You Can Sue After Agreeing On A Settlement
The circumstances surrounding your case will determine whether you sue after a settlement. You can sue the insurance company if you have a valid reason to believe they acted in bad faith. Bad faith includes;
- If the insurance company breaches the terms of the settlement
- If you later discovered that the settlement was procured through fraud or duress
- If new reports come to light that was not previously disclosed.
Scenarios Where You Cannot Sue After Agreeing On A Settlement
There are some scenarios where you cannot sue after a settlement. These includes:
- If you have signed a release of liability form, then you have essentially agreed to accept the settlement amount and forego any further legal action
- If your insurance policy has a clause limiting your right to sue.
So it’s best to consult an attorney to understand your rights and options before you sign anything or agree to a settlement.