The legal system has created a special system for the delivery of money from an insurance company to someone that has won a settlement for a 3rd party claim.
First steps in system
The lawyers report achievement of a settlement; then the court issues an order of settlement. The defense attorney prepares a release form and sends it to the plaintiff’s attorney, along with confirmation of the agreed-upon terms for settling.
The personal injury lawyer in Mississauga for the plaintiff studies the release form. If he/she approves of that form, then it gets sent to the appropriate client. The client signs the received form, so that it can be mailed to the defense attorney.
The significance of the release form
That signed document relieves the insurance company of responsibility for any further medical problems that the claimant might have, as a result of the accident that had caused the recently settled dispute. In other words, if, after signing, the claimant were to learn about a necessary surgery, one that would be used to treat the claimant’s injury, then the insurance would not pay for it.
In a case where the defendant did not have any type of car insurance, the plaintiff’s lawyer would demand delivery of a certified check before agreeing to issue the signed release.
A possible delay in the delivery of money, following a court-awarded judgment
When compared with the post-settlement process, it could take much longer for the plaintiff to receive any court-awarded funds. The opposing party might request an appeal. That request would lead to one of 3 different outcomes:
-The appellate court would uphold the initial verdict.
-The appellate court would reverse the original verdict.
-The appellate court would order a new trial.
Obviously, utilization of the appeal process could lead to a long delay, concerning delivery to the plaintiff of the money that had been promised by issuance of a court’s ruling. That fact underscores one of the chief drawbacks to pursuit of a lawsuit, rather than acceptance of a settlement.
The policy limits on the defendant’s insurance policy might also aid creation of a delay. If the plaintiff has failed to purchase underinsured motorist coverage, then the insurance company might not be required to cover all of the plaintiff’s medical expenses. If that were the case, then the defendant could not honor the terms set-down by the court.
Hence, the plaintiff would have to sue the defendant. That would force a delay in collection of the money that was due the person that had defeated the defendant in court. In fact, the defendant’s attorney would hope to convince an appellate court that his or her client should not be held responsible for compensating the injured party.