Can Someone Sue You after Insurance Pays?

The accident world can be a slippery slope to navigate. Typically, when an insurance company pays a settlement, the receiving party is not eligible for any further compensation. In fact, you may find that this is even a condition of accepting the payment.

However, some victims may wish to further sue a negligent party after the settlement has been paid. Is this even allowed? As it turns out, there are a few instances in which it may be viable for such a course of action to take place. These are as follows.

Fraudulent Behavior

A car accident settlement does not come out of thin air. Typically, there is a thorough review of the specific parameters surrounding the accident that leads to the figure established. For example, if you hit someone's vehicle, the settlement your insurance company pays is likely going to factor in established expenses, such as medical bills and vehicular damage.

Depending on how the events leading to the settlement unfolded, there may even have been a trial in the mix. Even if you did settle before things got to trial, St Louis accident lawyers were likely involved.

Following the settlement, information may have come to light that indicated that you or your attorney acted fraudulently during the proceedings. Beyond that, there must be solid proof beyond the shadow of a doubt that the said actions affected the outcome of the settlement.

If fraud is at the center of the suit, the case is highly likely to be thrown out if this relationship between cause and effect cannot be established.

Additional At-fault Party

You are likely sensing a theme here, where missing information is concerned. Many post-settlement suits revolve around exactly that. As indicated before, for the parties in the equation to reach a satisfactory settlement, certain information would have been available that would be the basis for whatever decision was taken.

However, what if the victim were not aware that there was further involvement by another party that led to the incident? This constitutes a viable reason to bring a post-settlement lawsuit forward. Imagine that the actions of both you and one of your friends caused an accident in which someone was injured.

Following the occurrence, the victim was compensated by your friend's insurance company. The settlement was accepted, and all seemed to be right with the world. However, the victim only knew that your friend was involved, as there was no mention of you previously. Alternatively, you and your friend may genuinely not have realized your contribution to the incident.

Either way, information has now come to light that indicated you were at fault as well. In this instance, there would be a subsequent suit after the accident settlement has taken place. Again, the relationship between your actions and the accident would have to be established for this suit to stand.

Unhappiness with the Previous Settlement

This is one of the most basic reasons why someone would attempt to sue you post-settlement. The victim in the equation may simply not feel as if what was obtained before was enough. For example, a figure may have been awarded to cover what would have been deemed as the full extent of expenses.

However, after a good settlement has been paid, new, unaccounted-for expenses may have shown up. Alternatively, the calculations made may have been off, and the medical bills are more than the figure previously thought to be accurate.

Note that it is incredibly difficult for the victim to win such a suit. As indicated before, settlement agreements often include a clause that prevents the recipient from seeking further compensation. It's not out of the realm of possibility for the presiding judge to award a second settlement, but it is incredibly rare.

Allow Powell Law Firm to Assist You

It's hard to beat the combined value of immense knowledge and years of experience. This is the kind of value that the team at Powell Law Firm brings to you. These are people who have seen a variety of events unfold as they helped clients navigate thousands of personal injury cases with the utmost care and professionalism.

The approach taken aims to ensure that the client understands all the applicable implications and rights in whatever unique situation presents itself. Of course, free consultations with no obligation are available to help with initial understanding.