Most legal claims arising from accidents or injuries do not reach a civil court trial; they are resolved earlier through a negotiated settlement among the parties. An informal settlement can even take place before any lawsuit is filed. Through settlement, the plaintiff in a personal injury case agrees to give up the right to pursue any further legal action in connection with the accident or injury, in exchange for the payment of an agreed-upon sum of money from the defendant or an insurance company. Rarely, instead of paying money the defendant will agree to perform (or cease performing) a certain action.

If you are considering settling a legal claim after an accident or injury, or if you have received a settlement offer, you should talk to your attorney and receive his or her thorough assessment of the case and the prospects for settlement. Consider the following points: