What happens if I am unhappy with my compensation offer?

A compensation offer is an offer by the party you are suing (known as the ‘defendant’) to settle your claim for a specific sum of money. Generally speaking, compensation offers are made in ‘full and final settlement’ of a claim.

This means that once you have accepted the offer, you cannot go back to court to claim more.

Before you accept a settlement offer, you should discuss it with your personal injury solicitor, who will consider it and advise whether it is fair. To assist them in assessing the offer, your solicitor will likely consider various matters, including the following:

• Medical evidence: Expert medical evidence plays a critical role in evaluating the suitability of a compensation offer. The expert will provide an opinion on the nature and severity of your injuries, their impact on your life, and your prognosis. Without this information, you may end up accepting a settlement offer that, whilst appearing favourable, does not cover your ongoing and future losses.
• Precedents: Precedents are judgments in previous personal injury cases that involved facts similar to yours. Your personal injury solicitor will review any relevant precedents to ascertain the level of compensation awarded by judges in those cases because you might expect something similar.
• Judicial College Guidelines: The Judicial College Guidelines assist judges and personal injury solicitors in evaluating the level of compensation that might be appropriate for specific injuries. However, since the severity of a particular injury can vary significantly, the ranges provided are fairly broad. Furthermore, the nuances of your case may warrant a different sum from that suggested by the guidelines. Nevertheless, they are a helpful reference tool when assessing the adequacy of a compensation offer.
• Your financial losses: You should not be out of pocket as a result of your personal injury, so you are entitled to compensation for the financial losses, such as loss of earnings, medical expenses, and travel costs, that stem from your accident. Your personal injury solicitor will calculate your economic losses, including predicting any that you will likely sustain in the future, and assess the adequacy of the offer accordingly.
• Settlement offers: Settlement offers made early in settlement negotiations often do not reflect the true value of a claim but are simply an attempt by the defendant or their insurers to dispose of the issue on the most advantageous terms possible. Your personal injury solicitor will likely advise you to reject any offer that does not adequately compensate you and may advise you to put forward a counteroffer.

However, if a compensation offer appears fair and reasonable in the circumstances, your personal injury solicitor may advise you to accept, even if you are unhappy with it. This is because failing to accept a reasonable compensation offer can have severe cost consequences, as we explain below.

If you refuse a compensation offer and go on to win a higher level of compensation at trial, the offer will have little practical consequence for you. 

However, if you reject a settlement offer and go on to be awarded less compensation than the defendant had offered, your refusal can have far-reaching consequences, particularly if the offer was made in the form of a ‘Part 36 Offer’.

Part 36 offers are compensation offers made on a ‘without prejudice’ basis. ‘Without prejudice’ means they cannot be referred to by the parties during the litigation, so the judge will be unaware that a part 36 offer has been made when making their decision and cannot be swayed by it.

However, once the case has been resolved and the issue of legal costs comes into play, the part 36 offer kicks in. 

If you refused a part 36 offer for an amount higher than that which the judge eventually awards, you will likely have to pay the defendant’s costs from the date on which you could have accepted the offer onwards, even though you have won the case. You may be protected from this liability if you funded your case with a no win, no fee agreement and your solicitors and insurers agreed that you should refuse the offer.

No win, no fee agreements are a great way of ensuring that everyone who has been injured in a no-fault accident has access to justice, regardless of their financial situation.

Many personal injury solicitors represent their clients on a no win, no fee basis. 

However, most no win, no fee agreements permit the solicitors to terminate the arrangement in specific circumstances. These circumstances might include:

• When the defendant has made a fair compensation offer, which the solicitor advises you to accept but which, against their advice, you refuse.
• If your solicitor terminates the no win, no fee agreement in such circumstances, they may be at liberty to bill you for the costs they have incurred to date, provided their advice to accept the offer was reasonable. 
• Furthermore, if you proceed with your claim without their assistance and go on to win at trial, they may be able to claim their success fee under your agreement. 

The vast majority of personal injury solicitors develop strong working relationships with their clients and are committed to acting in their best interests and securing the highest level of compensation possible on their behalf.

Accordingly, situations like the one mentioned above are rare. However, to minimise the risks, it’s important to use a personal injury solicitor whose advice you trust, and to take the time to understand the terms of your no win, no fee agreement before you sign. 

If you’ve been offered compensation for your personal injury claim and are unsure about accepting it, don’t leave your future to chance.

Consulting with a knowledgeable personal injury solicitor can make all the difference in securing the compensation you deserve. Understand your rights, evaluate your options, and make informed decisions to avoid costly mistakes.

Seek expert guidance to navigate the complexities of your compensation claim. Contact a trained legal advisor for free on 0800 234 6438. They will offer free, impartial advice to help you decide how to proceed.