Can Medical Malpractice Claims Be Settled Out of Court?

Can medical malpractice claims be settled out of court? Almost any type of legal issue can be resolved without going through the court system. This includes medical malpractice claims, where your lawyer can help to negotiate a settlement for compensation. If you are dealing with the consequences of improper medical care, it may be challenging to figure out your next steps. Your primary focus is likely on recovering your health, returning to work, and managing your expenses.

Doctors looking tired and sad. Can medical malpractice claims be settled out of court

If you have experienced harm due to medical malpractice, reach out to Chute, O’Malley, Knobloch, and Turcy, LLC at (312) 775-0042 to explore your options.

How Medical Malpractice Claims Can Be Settled Without Going to Court

A medical malpractice settlement is a deal made between a plaintiff (the patient or their family) and the defendant (the healthcare provider or institution) to resolve a claim without going to court. Typically, the defendant agrees to pay a certain amount of money to the plaintiff in return for the plaintiff dropping the lawsuit and not seeking further legal action. Settlements can occur at any point in the legal process, even before a lawsuit is officially filed.

Though a settlement can happen at various stages, the medical malpractice case timeline for settling without going to court will generally include these steps:

Write a Demand Letter

To start settling a medical malpractice case, the first step is sending a demand letter. This letter outlines your injuries and why you should receive compensation. It should summarize your experience with the healthcare provider, describe your injuries, and explain their impact on your life. Be sure to state the compensation amount you’re seeking, as you’ll be negotiating with the physician’s insurer.

Before writing the demand letter, be sure to gather all necessary information and supporting documents. Start with collecting medical records that detail tests, treatments, and diagnoses to establish a clear timeline of events. Next, gather invoices and receipts to document medical expenses, which include costs from hospitals and prescriptions. Make sure to obtain witness statements; these should be written accounts from those who observed the misconduct or its effects on you. It may also be beneficial to consult with other medical professionals to get expert opinions that highlight the inadequacy of the treatment you received. Finally, keep a record of physical and mental discomfort resulting from the malpractice, as this personal documentation can support your case.

Elements of a Demand Letter

Here are the essential components of a malpractice demand letter:

  • Incident Overview: Start with a straightforward account of the medical situation or treatment that led to the injury, noting the treatment date(s), the healthcare providers involved, and the location of the incident.
  • Negligence: A critical part of the letter is detailing how the healthcare provider acted negligently. This could involve failing to identify a condition, mishandling a surgical procedure, prescribing incorrect medications, or not providing adequate follow-up care.
  • Description of Injuries and Damages: It’s vital to thoroughly outline the injuries and damages suffered by the patient as a result of the malpractice. This can include physical injuries, emotional distress, lost wages, or reduced quality of life. Mentioning medical records and assessments can help support these claims.
  • Demand for Compensation: Clearly state the amount of compensation sought, which should cover medical expenses, lost income, future care needs, and other damages linked to the malpractice. This sum might also encompass compensation for pain and suffering.
  • Deadline: To promote a prompt resolution, include a deadline for the healthcare provider or their insurance to reply. Setting a timeline indicates that the injured party is ready to pursue legal action if a settlement isn’t achieved.

Response

When a demand letter is received, the defendant’s insurance or legal team typically investigates by requesting records or interviewing the plaintiff. They may respond in one of four ways: accept the demand and settle, make a counteroffer, deny the claim, or not respond at all.

If an offer is accepted, the matter is resolved. If negotiations take place, both sides can agree on a settlement. If no agreement is reached, or if the claim is denied, legal proceedings may start. Often, the standard initial response is either a total denial or a low settlement offer.

Negotiations

After you get the reply to your demand letter, it’s time to start negotiations. This stage involves a back-and-forth discussion between the parties involved—both plaintiff and defendant representatives.

During this process, each side will lay out their points, responses, and justifications for their positions. The goal is to reach a settlement agreement. This part can be lengthy and demands both patience and effective negotiation skills. Keep a few things in mind when you negotiate. Know your medical malpractice case value. Be aware of your case’s weaknesses to strengthen your negotiating stance. Practice patience. Negotiating is often a drawn-out process; avoiding haste can lead to better outcomes. Finally, be open to compromise. While it’s important to hold your ground on key issues, flexibility can help facilitate resolution.

Mediation

When negotiations reach an impasse, mediation can be a helpful alternative. This process brings in a neutral third party to help facilitate discussions and steer both sides toward a solution. Unlike a courtroom trial, mediation isn’t legally binding, so the mediator doesn’t make decisions for the parties involved. The goal is simply to find a mutually acceptable resolution.

Settlement Agreement

After both parties come to an agreement, they will create a settlement agreement that specifies the amount settled upon. This document will detail the terms of the settlement, including the agreed payment and conditions or confidentiality agreements. Both sides are required to sign this document. Usually, the plaintiff will absolve the defendant of any liability related to the malpractice case.

Receiving Compensation

Once the agreement is completed, the insurance provider for the defendant will handle the payment. The attorney for the plaintiff will oversee the distribution of the funds, making sure that medical expenses, legal fees, and other charges are settled first before providing the remainder to the plaintiff.

Advantages and Disadvantages of Settling a Medical Malpractice Case Outside of Court

Coming to an out-of-court resolution in Illinois can result in quicker, cheaper resolutions and less stress, but it might also mean lower compensation, restricted legal options, and less accountability for the negligent party. Settlements offer a guaranteed outcome, allowing both sides to agree without the unpredictability of a trial.

Advantages

  • Control Over Results: The success rate in medical malpractice lawsuits varies, with about 30% to 40% resulting in favorable outcomes for plaintiffs. Reaching a settlement allows both parties to have more influence over the outcome, as opposed to leaving the decision in the hands of a judge or jury. A settlement ensures a specific compensation amount for the plaintiff, while trial results can be unpredictable.
  • Cost Savings: Going to trial can be costly and lengthy. An agreement to settle can help bypass the high expenses associated with court fees, attorney fees, expert witness fees, and other costs related to litigation, leading to a quicker resolution.
  • Confidentiality: Settling usually involves confidential terms, meaning the specifics of the case and the settlement figure remain private.
  • Emotional Relief: The legal process can take an emotional toll. Settling allows plaintiffs to skip the stress and strain that often comes with a trial.

Disadvantages

Disadvantages of out-of-court settlements include:

Lower Compensation

Settling often leads to compensation that is lower than what a jury might award in court, which could result in victims not getting enough reimbursement for medical costs, lost wages, and emotional distress.

Limited Legal Recourse

After a settlement is achieved, the victim usually cannot take further legal action, even if they later realize the settlement wasn’t sufficient.

Lack of Accountability

Opting for a settlement may not fully hold healthcare professionals responsible for their actions, as it fails to send a strong enough message to deter similar incidents in the future.

Why You Need a Medical Malpractice Lawyer to Negotiate a Settlement

A medical malpractice lawyer is essential for negotiating a settlement. They offer the legal and medical knowledge needed to handle complex cases, and know how to avoid common mistakes after a medical malpractice case, ensuring you understand your rights and receive fair compensation.

These lawyers collaborate with medical professionals to grasp the details of your injury and its treatment, which strengthens your case. Their negotiation skills are vital when dealing with insurance companies and defendants, ensuring your interests are prioritized.

Medical malpractice attorneys can help clarify which damages you can claim, including medical costs, lost wages, and pain and suffering. Choosing the right medical malpractice lawyer can impact your chances of maximizing compensation after suffering harm from medical malpractice. Without legal representation, many victims settle for less than they should due to pressure from insurance companies.

If you or a loved one has experienced medical malpractice in Illinois, contact us at Chute, O’Malley, Knobloch, and Turcy, LLC for assistance negotiating to maximize your compensation.

Tom Chute is a 1993 graduate of DePaul University College of Law in Chicago, Illinois. With over 30 years of experience in personal injury law, Tom has obtained millions of dollars in settlements and jury awards on behalf of injured clients.

Tom has earned a reputation as a leading trial lawyer in the Chicago area, and he is frequently appointed by his fellow trial lawyers to serve as an Arbitrator.

A member of the Illinois Trial Lawyers Association and The Society of Trial Lawyers, Tom is a frequent speaker at a number of professional organizations, law schools, and seminars in Illinois.

Experience: Over 30 years
Illiois Registration Status: Active

Naperville Attorney Tom Chute