When resolving personal injury claims, a verbal settlement agreement is an important yet often misunderstood concept. Simply put, it is an oral agreement between the injured party and the insurance company or opposing party to settle the claim without going to court. These agreements usually occur during negotiations and aim to provide compensation for medical bills, lost wages, and other damages related to the injury. While a verbal settlement can sometimes expedite resolution, it is crucial to understand the terms clearly before agreeing, as these agreements can be legally binding even without a written contract.
At Chaz Roberts Law, we are committed to supporting you through every step after a personal injury. We help you navigate negotiations and investigate your case thoroughly to secure the maximum compensation you deserve. Our experienced personal injury attorneys handle all legal complexities and advocate fiercely on your behalf, allowing you to focus on your recovery. If you or a loved one has been injured, we encourage you to contact us for a free consultation to discuss your claim, understand your rights, and develop a strategy to achieve a fair settlement.
Understanding Verbal Settlement Agreements in Personal Injury Cases
Verbal settlement agreements after a personal injury often occur when property owners or the responsible parties promise to compensate the injured person for their damages without putting the agreement in writing. For example, after an accident, a property owner might say they will pay medical bills or cover losses as a form of informal compensation.
How Verbal Agreements Compare to Written Settlements
While these verbal agreements can seem straightforward and quick, they differ significantly from written settlements, which are formal, documented contracts signed by both parties. Written settlements clearly outline all terms and conditions, including compensation amounts and timelines, offering stronger legal protection and reducing the risk of misunderstandings. Verbal agreements, although potentially legally binding, are more difficult to prove and enforce, especially if the details are vague or if disputes arise later.
In Louisiana, settlement agreements are governed by the Louisiana Civil Code Article 3071 which provides that litigation can be resolved via settlement or compromise. The only two ways you can settle a case is through recitation in open court, or via written documents. However, this does not stop the insurance company from trying to settle your case orally.
Real-World Settlement Dispute
Chaz Roberts Law handled a dispute where the opposing party was recorded agreeing to settle. The insurance company and defense counsel insisted this recording was enough to finalize the agreement. However, Chaz successfully demonstrated that the alleged settlement did not meet the legal requirement that agreements be either in writing or expressly stated in open court. The judge agreed, finding that the plaintiff did not fully understand that she was settling her case at that moment.
Insurance adjusters are known to use tactics that pressure victims into verbal agreements, but without the required written documentation or court record, these agreements can and should be challenged. When you reach out to Chaz Roberts Law, we handle all negotiations with insurers to ensure your rights are protected.
Can You Back Out of a Verbal Settlement Agreement?
Calling off a verbal settlement agreement can be complicated, as these oral agreements can carry legal weight. Unlike written settlements that are formalized with signatures and detailed terms, verbal agreements can often be disputed due to a lack of clear evidence about what was actually agreed upon. While it might be possible to back out before signing any formal release, doing so requires quick action and clear communication, usually in writing, to avoid unintended consequences.
Risks and Potential Issues with Verbal Settlements
Some of the risks and potential issues with verbal settlements include:
- Difficulty proving the exact terms and conditions of the agreement
- Misunderstandings about compensation amounts or payment timelines
- Lack of documentation, which can lead to disputes or non-payment
- Possible pressure or coercion during negotiations that invalidates true consent
- Limited legal protections compared to written contracts
- Challenges enforcing the agreement if the other party reneges
Because of these risks, challenging, changing, or backing out of a verbal settlement is often complex. An experienced attorney can help navigate these difficulties by reviewing the details, advising on legal rights, and negotiating on your behalf to either enforce a fair agreement or resolve disputes. Having professional support increases the chance of protecting your interests and achieving the compensation you deserve.
Steps to Take If You Want to Withdraw or Challenge a Settlement Agreement
If you want to withdraw or challenge a verbal or written settlement agreement, the process can be complex and requires careful attention. Whether you are the one seeking to change the settlement or facing someone trying to back out, you can expect legal negotiations and scrutiny of the terms involved. The first step is usually to consult with an experienced attorney who can assess your situation and advise you on the strength of your case. If there are valid reasons, such as fraud, coercion, misrepresentation, or a significant mistake, the settlement may be challenged legally.
The process to change or withdraw a settlement often involves:
- Consulting a qualified personal injury attorney for legal advice
- Gathering all relevant communications, documents, and evidence related to the settlement
- Preparing a formal request or filing a motion with the court to rescind or modify the agreement
- Attending hearings or negotiations where both sides present their case
- Considering alternative dispute resolution methods like mediation or arbitration if litigation becomes difficult
- Communicating clearly and promptly to document your intent and protect your rights
Having an attorney by your side is critical throughout this process. They help verify that any grounds for challenging the settlement are legally sound, prepare necessary legal filings, and represent you in court or settlement discussions. An attorney’s involvement improves your chances of reaching a fair resolution while protecting your rights and interests during what can be a complicated and stressful situation.
How Chaz Roberts Law Supports Clients Through Settlement Negotiations
At Chaz Roberts Law, we provide clear guidance and practical support throughout your personal injury claim and settlement process. Our team carefully reviews the details of your case, communicating every step clearly so you understand your options. We focus on securing fair compensation by handling negotiations with insurance companies and opposing parties professionally and efficiently, allowing you to prioritize your recovery. With a deep understanding of Louisiana personal injury law, we identify potential pitfalls and advocate tenaciously on your behalf. If you have been injured, reach out to Chaz Roberts Law today to start your journey to compensation.
