A personal injury settlement agreement is a legally binding contract between an injured party (the plaintiff) and the at-fault party or their insurance company (the defendant). In exchange for receiving payment, the injured person agrees to release the other party from any further liability for the accident. Once you sign the agreement, you cannot pursue additional compensation for the same personal injury.
In Oklahoma, settlement agreements are common in personal injury cases because they allow both sides to resolve disputes without going to trial. However, understanding what’s included in the agreement is crucial before you sign. If you’re unsure how these terms apply to your case, a personal injury lawyer in Tulsa can help you understand what to look for in an agreement.
How a Personal Injury Settlement Works in Oklahoma
Most personal injury cases in Oklahoma are resolved through settlements rather than jury verdicts. Once liability is established and the value of damages is negotiated, both parties will draft a written agreement that outlines the payment terms and legal release language.
Under Oklahoma law, a settlement becomes enforceable once it’s signed by all of the parties and consideration (the payment) is exchanged. The agreement typically includes:
- The total amount of compensation
- The date and method of payment (lump sum or installments)
- A full release of future claims related to the same incident
- Confidentiality terms (if applicable)
- A clause confirming that the settlement does not admit fault
Since some types of compensation may be treated differently under state and federal law, it’s also important to understand whether personal injury settlements are taxable in Oklahoma before agreeing to final terms.
Once executed, the settlement is final. The case is then dismissed, and neither party can reopen it later on.
What Damages Are Covered in a Settlement?
A personal injury settlement agreement can include economic and non-economic damages, depending on the case. Common examples include:
- Medical bills (current and future)
- Lost wages and reduced earning capacity
- Property damage
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
Oklahoma also allows for punitive damages in rare cases involving egregious wrongdoing. However, these are typically only awarded by a court and are not part of most settlements.
Mistakes To Avoid When Signing a Settlement Agreement
Since a settlement agreement closes your case permanently, it’s essential to review every term carefully. Common mistakes that can hurt your recovery include:
- Accepting a quick offer: Insurance companies often make early settlement offers that undervalue your claim. Once you sign, you can’t ask for more.
- Failing to understand the release language: The release may cover not just the at-fault party but also other potential defendants.
- Overlooking future medical costs: Some injuries require long-term care. Signing too early can leave you responsible for future bills.
- Not addressing prior injuries early in the process: Insurance companies closely review your medical history and failing to disclose pre-existing conditions could lead to disputes about causation.
Consulting with an Oklahoma personal injury lawyer before finalizing your settlement ensures you fully understand your rights and the value of your claim.
Contact an Oklahoma Personal Injury Lawyer Before Signing a Settlement
A personal injury settlement agreement can bring closure to your case, but only if it truly reflects the full amount of compensation you’re entitled to under the law. Before you sign anything, reach out to an experienced personal injury lawyer who can review your agreement and ensure your future needs are covered.
Most attorneys in this area of the law, including ours with Gorospe Law Group, offer free consultations and work on a contingency fee basis, meaning you pay nothing unless we recover money for you. Contact us today to get started.