Can You Reopen a Personal Injury Case After a Settlement?

The Concept of a Personal Injury Settlement and Its Finality

When you agree to a personal injury settlement, you are entering into a legally binding contract. In exchange for financial recovery, you agree to release the other party from future liability related to your accident. The settlement release agreement is designed to close the case permanently, giving the insurance company or defendant certainty that they will not face further claims. 

Here’s why reopening injury claim settlement agreements is so challenging:

• Contractual obligations: Once you’ve signed the agreement, settlement terms are enforceable in court.
• Release of rights: You give up your ability to pursue additional personal injury claims tied to the same incident.
• Predictability for both sides: Insurers pay knowing the case is over, and you know what you’ll receive.

As a result, undoing a personal injury settlement is very difficult, even if your medical bills later end up higher than expected. That’s why your legal team must carefully consider factors that affect the value of your personal injury lawsuit before you sign anything. 

The Release of Liability Contract 

At the center of nearly every claims process is the release of liability contracts. Personal injury law in Nevada allows insurance companies to use this document to shield themselves from future lawsuits or claims tied to the same accident. These release agreements are often written broadly, covering:

• Known injuries at the time of settlement.
• Potential future complications.
• Related claims that might arise.

Because of this, courts rarely allow challenges to them. Unless you can prove an extraordinary issue, modification of injury settlements will be incredibly difficult. 

Role of Maximum Medical Improvement (MMI)

One way to avoid settlement regret is to wait until you’ve reached maximum medical improvement (MMI) before finalizing. MMI is one of the many factors that affect the value of your personal injury settlement. 

MMI is the point where your doctor determines that your condition has stabilized and further treatment will not significantly improve your health. Settling before this point can be risky because you may not know:

• The full cost of your ongoing care.
• Whether you’ll need additional surgery or therapy.
• If your injuries will permanently limit your ability to work.

An experienced attorney will strongly advise against accepting any settlement until MMI is reached. By waiting, you ensure that your personal injury settlement accounts for:

• Current and future medical bills.
• Lost wages and diminished earning capacity.
• Non-economic damages in a personal injury lawsuit, such as pain and suffering.

Due to the finality of settlements, personal injury victims should wait until they know the full extent and cost of their injuries. 

Extraordinary Circumstances That May Allow a Case To Be Reopened

Nevada Rules of Civil Procedure Rule 60(b) outlines circumstances when a case can be reopened. Here are scenarios where amending injury complaints may be permissible in Nevada.

Fraud, Misrepresentation, or Duress 

Fraud in personal injury settlements, such as when an insurer intentionally misleads or misrepresents facts of the case, can lead to your agreement being challenged. Reopening cases due to misrepresentation may be possible if your matter involved the following:

• Concealing policy limits to discourage you from seeking full compensation.
• Failing to disclose new evidence after settlement terms are reached.
• Making false statements about the strength of your case.

Similarly, if you signed under duress, the court might consider reopening your case. Coercion or pressure that removes your free will is a type of duress. 

Mutual Mistake

A mutual mistake in injury case settlements occurs when both sides are mistaken about a critical fact. For instance, imagine that both parties believed your injury was a minor fracture. Later, it was discovered to be a severe spinal injury.

The bar for this exception is very high. It must be proven that neither side could have known the truth during the settlement process. The mistake must have also had a central impact on the agreement. If the mistake did not substantially impact the outcome of the claim, the court may deny your request to reopen the claim. 

Undisclosed Injuries or New Evidence 

The impact of undisclosed injuries can be significant and may allow you to reopen the settlement. Discovering new evidence after settlement is another reason why you may be able to reopen a settlement agreement after the fact. However, this can get tricky.

Courts typically uphold the settlement release agreement, which usually includes language covering “known and unknown injuries.” Exceptions may apply if the injury was completely undiscoverable despite reasonable medical diligence or if new evidence emerges after the fact. 

Simply having your injury worsen is not enough. You must show it was a new and previously unknown condition. 

Breach of Settlement Agreement 

A breach of settlement agreement terms occurs when the other party fails to honor the contract they signed. For example, if an insurance company drags its feet when preparing payment or refuses to pay the agreed-upon amount, they are violating the settlement terms. While this is not usually grounds for reopening a personal injury case, it gives you the right to enforce the contract in court. 

Depending on the severity of the breach, you may be able to seek interest, penalties, or even additional legal action to compel compliance. In some cases, the breach can undermine the validity of the agreement altogether, giving you leverage to pursue stronger remedies. 

Keep in mind that the exceptions to personal injury settlements are rare. If you are petitioning the court to reopen a claim that has already been settled, you’ll need strong evidence.

The Process and Challenges of Reopening a Case

The process of setting aside settlement agreements is not simple. First, you or your attorney must file a petition with the court asking that the agreement be set aside. You’ll need to present compelling evidence that one of the limited exceptions applies. Courts apply strict standards to legal grounds, and the burden of proof falls entirely on your shoulders. 

You must also act within the claim reopening time limits set by Nevada law, or your case may be automatically denied. If your case involves a business accident insurance claim, then NRS 616C.390 will apply. In most personal injury cases, NRCP Rule 60(b) applies. Claim reopening time limits under Rule 60 are six months from the date the order was signed/issued.

Don’t wait until the deadline approaches to gather evidence or get legal assistance. You should begin preparing your request to reopen a claim as soon as possible so that your attorney has time to create strong arguments on your behalf. Many judges will be hesitant to reopen a personal injury settlement. 

The Role of Nevada Law in Personal Injury Settlements 

Filing personal injury lawsuits and pursuing compensation is governed by the Nevada Revised Statutes. Nevada law makes it clear that settlements are intended to be final. Courts strictly enforce settlement agreements, viewing them as binding contracts between the parties. 

While legal doctrines such as fraud or misrepresentation can provide grounds to challenge a settlement, these exceptions are narrowly applied under personal injury law. Nevada judges generally discourage reopening a personal injury case unless the evidence is clear and undeniable. That’s why having an attorney familiar with Nevada settlement rules is vital. 

Adam S. Kutner, Injury Attorneys, brings decades of local experience to your case. An experienced attorney from our team will ensure your case is filed within the two-year statute of limitations, as outlined in NRS 11.190. Our team will help you understand your rights and avoid costly mistakes during settlement negotiations. 

Preventing the Need To Reopen: The Right Way To Handle Your Claim

The best way to avoid the regret of signing an undervalued settlement offer is to handle your claim properly from day one. First, do not rush into accepting an insurer’s offer. They are not on your side. Insurance companies are motivated to save money, not to provide you with full and fair compensation. With that in mind, talk to an attorney before you sign anything. 

Second, make sure you receive complete medical care and wait until you reach MMI before agreeing to a settlement. Finally, consult an experienced attorney early in the process. A lawyer can guide you through the process of a personal injury lawsuit, evaluate factors that affect the value of your personal injury settlement, and ensure that the agreement provides for both your current and future needs. 

An experienced attorney can also answer common questions, such as “Can a personal injury settlement be garnished?” and “What are non-economic damages in a personal injury lawsuit?”

Not sure where to start? Adam S. Kutner, Injury Attorneys, is here to help in your time of need. 

Contact an Experienced Attorney for Your Personal Injury Case 

While reopening cases due to misrepresentation or fraud is possible in Nevada, it remains extremely rare. Courts value the finality of settlements in personal injury cases, and undoing a personal injury settlement requires extraordinary proof. The most effective way to protect yourself and your interests is to secure an attorney from the beginning of your claim.At Adam S. Kutner, Injury Attorneys, our team understands the complexities of Nevada law and has helped countless clients secure fair compensation without future regret. Our legal team will be with you every step of the process of a personal injury lawsuit, and will stand up for your rights.

FAQ