Quick answer: A claim is a demand for compensation made to the party responsible, usually resolved by negotiation. A lawsuit is a court case that begins when a complaint is filed. Bureau of Justice Statistics data show that most tort cases it studied were resolved before trial, and a settlement can end a lawsuit as well, so filing suit does not mean you will go to trial.
On this page:
- What a claim is
- What a lawsuit is
- Claim and lawsuit side by side
- Most cases are resolved before trial
- When filing a lawsuit becomes necessary
- Next steps
What a claim is
In everyday use, a personal injury claim is your demand for compensation from the party you say is responsible for your injury. It is usually pursued by negotiation, often starting with a demand letter. The Legal Information Institute describes a demand letter as a letter that outlines the dispute and begins a negotiation process meant to resolve it without filing a claim in court, if that is possible. Nothing has been filed with a court at this stage. We walk through the whole path in how a personal injury claim works, step by step.
What a lawsuit is
A lawsuit is a case in court. In federal court, a civil action is commenced by filing a complaint with the court, and state courts have their own rules. The complaint states the basis for the court's power, the claim and the relief the plaintiff wants, and the defendant must answer it. From then on the case is handled by a court, with formal steps such as exchanging information before trial.
A lawsuit does not replace negotiation. The sides can keep talking, or bring in a neutral mediator; mediation is non-binding, and if no agreement is reached the parties may still pursue their claims.
Claim and lawsuit side by side
| Claim | Lawsuit | |
|---|---|---|
| What it is | A demand for compensation made to the party responsible | A civil case brought in a court |
| How it starts | Usually a demand and negotiation | Filing a complaint with the court |
| Who can resolve it | The sides, by agreement | The sides by settlement, or a judge or jury if it is tried |
| How it can end | A settlement agreement | A settlement, which dismisses the case, or a decision after trial |
Most cases are resolved before trial
The Bureau of Justice Statistics, which surveys civil cases in state courts, reports that a majority of tort, contract and real property cases are resolved before trial, and that only a small percentage, about 3% in the studies it cites, are actually decided by a jury or bench verdict. Those figures come from state courts in the nation's most populous counties, so they describe a pattern rather than a rule for every court. An earlier BJS report reached the same conclusion.
It also helps to separate two ideas. Filing a lawsuit is not the same as going to trial: a settlement is an agreement that ends a dispute and results in the voluntary dismissal of related litigation, so a filed case can still settle. What the claim is likely to be worth is a separate question, and the Settlement Value Calculator estimates it by state.
When filing a lawsuit becomes necessary
- The sides cannot agree. If negotiation, and mediation if it is tried, do not produce a settlement, filing a complaint is how the injured person takes the dispute to a court.
- The deadline is approaching. A statute of limitations bars claims after a set period, which varies by jurisdiction and type of claim. Keep your state's deadline in view while you negotiate; the Statute of Limitations Calculator shows it.
- The law calls for a court. In some situations, such as a settlement for an injured child, state law may require a judge to approve the deal. The Minor's Settlement Calculator shows how that works by state.
Costs can also change once a case is filed. Some fee agreements, and some state fee rules, can treat the period before and after a lawsuit is filed differently, so check how yours works with the Attorney Fee Calculator.
Next steps
If you are wondering how long each path can take, read how long a personal injury case takes to settle. The personal injury calculators cover every state, and our methodology page explains how each figure is verified. For advice on your own case, talk to a licensed attorney in your state.