Medical Malpractice Verdicts vs. Settlements

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Medical malpractice verdicts--what are they? After all, sometimes we hear about a “settlement” in a malpractice case; other times, we hear about a “verdict.” Are they the same thing?

Yes and no: how a settlement and a verdict come about are different, but at the end of the day, they mean essentially the same thing—the case's outcome.

Settlements are Negotiated Between the Parties

A settlement is an agreement between two parties, the plaintiff (injured patient) and the defendant (doctor, hospital, etc.). When a case is settled, the defendant offers something, almost always a sum of money, to the plaintiff, who agrees to take the offer and stop the lawsuit. The plaintiff gives up the right to sue in exchange for receiving the settlement.

A Verdict is the Decision of a Court

If a lawsuit goes to trial and the court decides it, the decision is called a verdict. A verdict in favor of the plaintiff results in the defendant being ordered to pay some sum of money and possibly take additional actions as well. A verdict in favor of the defendant means the plaintiff does not recover anything. Unlike a settlement, which is voluntary, the verdict is imposed by the court.

You Can Appeal a Verdict, But Only Rarely a Settlement

Since a verdict is a court adjudication, the losing party can appeal it to a higher court. However, the mere fact that a party doesn’t like an outcome does not give it the right to appeal. Instead, there has to be some potential mistake, such a misapplication of law, which the losing party can point to as the reason for the appeal.

Settlements, on the other hand, are voluntary. Since the two parties agree to a settlement, it is very hard to set one aside—it would take some showing of fraud, deception, or significant factual error to do so.

A Difference That Makes No Difference

Most appeals are unsuccessful, which means that the fact that verdicts are more readily appealable makes little difference in most cases. As a result, the distinction between settlements and verdicts is largely a technical one. In the real world, both represent the same thing: the outcome of a case.

How an Attorney Can Help

Verdicts tend to be more “all or nothing”—either a party wins or it doesn’t. Settlements are negotiated, and like any other negotiation, usually mean each party gets less than it ideally would like (but avoids a potential big loss). A lawyer can help a party understand when it is better to negotiate a settlement that gives both sides something…and when it’s better to roll the dice and try to win it all.

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