When a personal injury case is settled, it means both parties have agreed on a resolution without going to trial. Typically, the defendant or their insurance company agrees to pay a specific amount to the plaintiff, and in return, the plaintiff agrees to release the defendant from further liability related to the claim.
Both parties typically sign a settlement document to formalize the agreement. Once this document is signed, it usually closes the case completely and prevents either side from pursuing further claims arising from the same incident.
If a Case Is Settled, Can It Be Reopened?
You can reopen a case if it is settled, but it can be complicated and requires a careful analysis of many legal factors. Settlements are legally binding agreements between the parties in a case. In some situations, the plaintiff may discover new information after settling that could lead to a settled case being reopened.
Can You Undo a Settlement?
Generally speaking, once both parties sign a settlement agreement, it is extremely difficult to undo it. This can be one of the
disadvantages of out-of-court settlements. Courts are reluctant to reopen settled cases because the purpose of a settlement is to bring finality to the dispute.
That said, courts in Arizona, California and Colorado may consider setting aside a settlement if it was reached under specific circumstances such as fraud, coercion, duress, misrepresentation or mutual mistake. For example:
- In Arizona, a party may ask the court for relief under Rule 60(b) of the Arizona Rules of Civil Procedure if the agreement was based on fraud or newly discovered evidence.
- In California, a similar request can be made under Code of Civil Procedure §473(b) for mistake, inadvertence or fraud.
- In
Colorado, Rule 60(b) of the Colorado Rules of Civil Procedure allows the same type of relief.
These exceptions are limited and require strong proof.
How Do I Reopen a Settlement?
