You’ve settled your personal injury case, only to discover that your injuries are worse than you initially thought. Maybe you’re facing some unexpected medical complications. Either way, it means you need more money for more medical bills, and your settlement won’t cover it all. Can you reopen your case in New Jersey? The short answer to that question is probably not. The real answer is longer and more complicated, but understanding the finality of settlements, the grounds for and challenges of reopening a case, and the steps to take if you think your case should be reopened is critical to ensuring you don’t waste precious time or resources as well as preventing you from settling your claim too quickly.
Impact of Signing a Release of Liability
Personal injury law helps protect individuals who are harmed by another person’s negligence, recklessness, or intentional actions. Personal injury settlements are common in car accidents, slips and falls, and medical malpractice cases, among others. Settlements often close with the injured party signing a release of liability, which makes the settlement final. That finality protects the liable party from being held responsible for the injured party’s injuries indefinitely. However, that same finality also means that if the injured party later discovers their injuries are more serious or other complications arise, they are unlikely to be able to get more money to cover those expenses.
There are many reasons why both parties often prefer to settle a personal injury claim. Ultimately, the settling of such a claim happens when the injured person signs a release of liability, which states that upon receipt of the money the parties have agreed on, the injured party cannot try to get more money from the liable party. This release of liability is a final and legally binding agreement between the parties. It prevents the injured party from being able to demand more money from the liable party while also allowing the liable party to pay the agreed-upon amount and not have to worry about whether they will need to pay more later.
Assessing the Strategic Value of Settling
While people might assume that settlements are just a way for liable parties to avoid paying more money or avoiding negative attention, there are several purposes behind settlements, many of which are beneficial to both the liable and injured parties. One of the biggest reasons to settle a case is to avoid a lengthy trial. If the parties do not settle, the case must go to court. This requires being put on the docket, which can take weeks, months, or even years if the court is busy. Then, the trial itself can take days, weeks, or months as both sides present their evidence and make their case and then wait for the judge or jury to make a decision. Finally, once a judgment is ordered, if the injured party is entitled to any money, they must wait for the liable party to pay, which may also take some time. A settlement allows the parties to agree that the liable party was responsible, and the injured party will take a set amount of money, and the entire matter is settled. Even with negotiations, most cases can settle much more quickly than a trial would be.
Another purpose of settlements is the certainty they provide both parties. Even when a case seems to be a “sure thing” for either side, a judge or jury can view the evidence differently and result in an unexpected outcome. From ordering more or less money than expected to deciding that the liable party isn’t liable or the injured party isn’t injured, the unpredictable possibilities of a trial can leave both parties feeling anxious and uncertain. With a settlement, the parties agree to all the details, including how much money will be paid and when it will be paid so that both sides feel assured of what to expect.
Challenging a Settlement: Extraordinary Reasons for Reopening a Case Once it is Closed
Generally, once a case is settled and closed, it cannot be reopened. However, certain circumstances do warrant reopening a settled case. These circumstances are called grounds, and when they occur, they may allow the injured party to reopen the settled case.
Misrepresentation or Fraud
In cases of fraud or misrepresentation by the defendant or their insurance company, it may be possible to reopen the case. Fraud occurs when the defendant or their insurance company intentionally deceives the plaintiff. Fraud can include coercing the plaintiff into signing the wrong paperwork or withholding critical information that might have changed the plaintiff’s decision to settle the case. Misrepresentation might include misleading the plaintiff by telling them that the insurance policy covers less than it actually does or claiming that no prior accidents occurred when they did. For both fraud and misrepresentation, it may be required to prove that the fraud or misrepresentation impacted the settlement’s terms or processes to be able to reopen it. Individuals who believe that fraud or misrepresentation may apply to their closed settlement may wish to consult with an attorney to learn more about what rights they may have.
Mistake of Material Fact
A mutual mistake about a material fact could be grounds for reopening a settled case. A mutual mistake means that both parties were mistaken, and a material fact means that it must be a fact that has an impact on the settlement. A material fact might be the severity of the individual’s injuries. If both parties were mistaken about the severity of the injured party’s injuries, and they are more severe than previously believed, the case may be reopened. Demonstration of a mistake, in fact, may also be grounds to reopen a settlement. However, this may not apply in every case. For example, a broken bone that takes two or three extra weeks to heal may not be grounds to reopen the settlement. However, a broken bone that should have healed but needs to be surgically repaired because it did not heal properly may be grounds to reopen the settlement.
Unforeseen Circumstances
Sometimes, unforeseen circumstances that significantly worsen the plaintiff’s condition may allow the settlement to be reopened. An example of these unforeseen circumstances might be a latent injury that manifests later. These types of injuries could include certain types of brain injuries, some spinal cord injuries, stress fractures (tiny cracks in the bones that do not present a problem until significant activity is resumed), and other injuries that may be masked by adrenaline initially or whose symptoms get progressively worse. Plaintiffs who are hospitalized or ordered to recuperate by staying off their feet may discover these latent injuries after they have settled the claim. Individuals should be aware that if the unforeseen circumstances are a latent injury, the defendant is likely to argue that the injury did not result from their case. It will be critical to have evidence that indicates the injury did result from that case. Other unforeseen circumstances are also likely to result in the defendant attempting to argue the circumstance unrelated to the case but it may be easier to prove that it is.
Lack of Capacity or Duress
There are several other potential legal grounds that may allow for reopening a settled case. Lack of capacity, such as when the plaintiff is a minor or mentally incapacitated, can be grounds for reopening a case. Duress, or the use of coercion, force, threats, or psychological pressure to get the plaintiff to settle the claim when the plaintiff did not want to, is also grounds for reopening a case.
Changes Involving Marital Status
If the plaintiff is married, marriage and settlement rights may also be grounds for reopening the case. An injured party’s spouse may have rights for claiming loss of consortium, and if they were not given a chance to do so or they did not understand the implications of the settlement, the case may be reopened.
Confidentiality Breaches
Privacy and confidentiality issues may also be grounds to reopen a case. Breaches of confidentiality by the defendant or their insurance company or legal counsel, including the disclosure of private settlement discussions or sensitive information about the plaintiff, may allow the injured party to reopen the case or take other legal actions. If strong privacy protections are not implemented after the case is allegedly closed, this can also be grounds to reopen the settlement.
A consultation with an experienced personal injury attorney to review the settlement and all the facts and circumstances surrounding it can help an individual determine if they have a legal ground to reopen their settlement.
Surmounting the Obstacles to Overturn Your Injury Settlement
Even when an individual has grounds to reopen their personal injury settlement claim, they still face several challenges to doing so, including proving that they have grounds to reopen the claim. Therefore, individuals should carefully consider these challenges and may want to speak with an attorney to learn how they might overcome them.
High Burden of Proof
There are limited grounds for reopening a case. Even when a case does have grounds for reopening, it can be challenging to do so. It is rare that the grounds to reopen a case will be clearcut and obvious. If they were, there would likely be questions regarding why the settlement was closed with such obvious problems.
This means that there must be strong evidence backing up the particular ground that applies to the case. Finding this evidence can be difficult. Even if the individual can find strong evidence to prove the case should be reopened, this does not guarantee a different outcome or any changes to the settlement.
Time Limits
The statute of limitations on filing an initial personal injury claim in New Jersey is two years from the date of the injury or the date the injured person should have known they were injured. While this generally applies only to filing the initial claim, it may impact the ability to reopen a claim. Additionally, there may be other strict time limits that restrict an individual’s ability to challenge a settlement.
Court Approval
One of the purposes of a settlement is to avoid a lengthy trial in court. However, even though a settlement may avoid court if the plaintiff wishes to reopen the case, they will likely need to get court approval to do so. Most New Jersey personal injury cases will typically require this court approval. This approval will require the court to review the case, the settlement terms, and the grounds for reopening the case, which can take time that the court could spend on other cases. Because both parties agreed to the terms of the settlement, it may be difficult to get the court to take the time to approve reopening the settlement.
Roadmap to a Settled Case You Believe Should Be Reopened
If an individual believes their case should be reopened, there are some steps they should take. First, they should consult with an attorney to determine what grounds they have for reopening the case. Next, they should gather as much evidence as they can to back up the grounds for reopening the case. This may include medical records, settlement documents, or proof of mutual mistakes.
Once the individual has done all this, they can make the request to reopen the case. They will likely need to submit the request, along with their evidence, to the court to get court approval. If they are given approval, they will then be able to engage in additional negotiations. If the court does not approve reopening the claim, the plaintiff will not be able to move forward with additional negotiations.
Rely on Our Attorneys To Know When Can You Revisit a Settled Personal Injury Case
You may believe there are grounds to reopen your personal injury case after reaching a settlement in New Jersey, but there are limited grounds that would allow this reopening. To know whether you are actually eligible to reopen your case, it is critical that you consult with an experienced personal injury attorney. At Cohen & Riechelson, our accomplished legal team can review your case and determine your eligibility. If you do have grounds, our NJ injury lawyers can help to ensure you follow the legal process meticulously, which will be critical to have the best chance to reopen the case, as well as making persuasive arguments to support reopening the case. Our experienced attorneys serve clients throughout New Jersey, and we are prepared to assist you with reaching, evaluating, or potentially even reversing your personal injury settlement. Contact us at (609) 528-2596 for a free consultation today.
