Many personal injury cases end with private settlement agreements rather than trials and jury verdicts. Even so, defendants who agreed to settlements do not always comply with them, and you may need to take further legal action. Your attorney can help you return to court to hopefully compel the defendant to abide by the settlement agreement.
Your attorney can help you file a motion with the court to enforce the settlement. We may need evidence of the settlement itself and how the defendant has breached the agreement. If the defendant still refuses to comply, courts can seize the defendant’s assets or garnish their wages to ensure that you get the compensation you are owed. If a defendant refuses to pay because they cannot afford it, we may consider working out a payment arrangement they can afford.
Get a free review of your case from our NY personal injury attorneys by calling The Carrion Law Firm at (718) 841-0083.
What to Do if the Defendant Refuses to Abide by the Settlement?
Settlement agreements, once signed and presented to a court, are legally binding contracts. If you sue a defendant only to settle out of court, the defendant is required to abide by the terms of the settlement to which they agreed.
If the defendant refuses to abide by the settlement, our Albany, NY personal injury attorneys can file a motion with the courts to enforce the settlement. When we file the motion, we should have evidence of the defendant’s breach of the settlement agreement. Have they refused to pay? Or have they breached some other terms of the agreement?
Next, we should wait for the court to compel the defendant to comply with the settlement agreement. The court might admonish the defendant and threaten serious consequences. If they still refuse to cooperate, we may need to take further legal action.
How Someone Might Refuse to Comply with a NYC Injury Settlement
Settlements often contain various terms that apply to more than just payment and compensation. It is possible that the defendant in your case refuses to comply with one or several of these terms.
One possibility, and perhaps the most common, is the refusal to pay. Many defendants are reluctant to admit defeat, even after they have signed a legally binding settlement agreement. They might refuse to pay or delay payment as a way of retaliating. Your attorney can help you enforce the settlement and make the defendant pay what is owed.
It is also possible that the defendant refuses to keep the terms of the settlement private. Terms related to confidentiality are often included in settlements to prevent the parties from publicly disclosing the settlement amount or other details. If the defendant discloses information you wanted to remain private, your attorney should intervene.
How to Compel Payment According to an Injury Settlement in NYC
If the defendant refuses to pay you according to the settlement terms, we can file a motion with the court to enforce the settlement. At that point, once we prove that the defendant refuses to comply, we should wait to see what the court does.
The defendant may be fined if they do not pay. The court might use this to pressure the defendant into complying. If they continue to refuse, heavy fines might be in order in addition to the money they owe you, according to the settlement.
If the defendant still refuses to pay, the court can seize property or garnish wages to compel payment. This is less than ideal, but it might incentivize defendants to comply and get it over with. Otherwise, they might lose income or valuable property.
What Happens if a Defendant Cannot Afford to Pay a Settlement?
If a defendant does not pay a settlement because they cannot afford it, you may consider re-negotiating, but both you and the defendant must agree to this. If the defendant wants to re-negotiate after signing a settlement contract, you can refuse.
You might instead work out a payment plan with the defendant. It is common for defendants to be unable to afford large settlements all at once. You might negotiate for a large sum up front, followed by monthly installments.
You might accept whatever the defendant is capable of paying right now and move on. This may not cover everything you are entitled to, but it may provide sufficient compensation and enable you to move on quickly.
Why Someone Might Refuse to Comply with an Injury Settlement in NYC
Defendants may refuse to comply with a settlement agreement for various reasons. One of the most commonly cited reasons is that the settlement is more than the defendant can afford. They might even try to pay what they can, but they simply do not have enough money. Again, you can try to work with them, or the court could seize assets.
Another common reason is that the defendant does not believe the settlement is fair. They might have agreed to a settlement because they knew they would likely lose a trial, but that does not mean they have accepted the outcome of the case.
Often, no reason is given. Many people who refuse to pay never own up to the truth. They often make excuses in the hope of waiting you out until you give up.
What Happens if a Defendant Cannot Pay a Settlement?
If a defendant cannot afford to pay your settlement, and they have no assets to speak of, you might have a serious problem. Such a defendant may be considered “judgment proof.”
Even when a defendant has no liquid assets with which to pay a settlement, courts may seize properties or garnish wages to make the defendant pay. If the defendant has no money and no assets, there might not be much you can do. As such, we must determine whether the defendant is judgement proof before we enter settlement negotiations.
Contact Our NY Personal Injury Attorneys to Assist in Your Case
Get a free review of your case from our Niagara Falls, NY personal injury attorneys by calling The Carrion Law Firm at (718) 841-0083.