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Personal Injury Settlements Are Subject to Court Approval, and They May Be Thrown Out if the Presiding Judge Rejects the Terms

Settlements can be an effective and beneficial way for both parties to resolve a case without having to go through a trial. However, some settlements can be thrown out if they are not approved by a judge, causing the litigation process to continue.

Personal Injury Settlements in Illinois

Although a plaintiff has the freedom to decide whether or not to file a claim, once a claim is filed in Illinois, the plaintiff does not always have the freedom to voluntarily dismiss a case. Some claims, such as class actions and claims by minors, may require court approval.

In Illinois, an approved settlement generally results in a voluntary dismissal of the case for the plaintiff. Generally, such a dismissal is taken “with prejudice,” which means that the claim cannot be brought again. In addition, the court that granted the dismissal generally retains jurisdiction of the case to enforce the terms of the settlement. Finally, it is important to note that if a claim is settled, normally it cannot later be challenged unless there was a mistake or fraud.

$100 Million Uber Settlement Rejected by Judge

According to one news report, a federal judge in San Francisco rejected a settlement agreement between Uber and its drivers. In a three-year-old lawsuit brought by drivers against Uber, Uber and the drivers had come to an agreement to resolve the case without going to trial. However, the judge rejected the case, stating that the deal was unfair. While the judge recognized that proceeding to trial carried a risk for the company and for the drivers, the judge said the agreement was too low, since the amount was small considering potential claims under California law. In addition, the judge said that he was not reassured that a proposed change in the company’s tipping policy would result in “substantially increased income,” as the company promised.

Since the judge rejected the settlement for being too low, it would seem that Uber would increase the settlement to reach an acceptable deal, in terms of money or improved terms. However, some have speculated that this may cause a settlement to be taken off the table completely. An appeals court has hinted that a key ruling made previously in the case might be overturned, which found that drivers should be treated as employees.

If the case proceeded and Uber appealed, the appeals court would hear the case next, which could result in a dismissal of the case, causing the whole case to fall apart. This could result in the case failing to have any significant impact on the company’s business model or compensation for drivers. It would also likely mean that many drivers would remain classified as independent contractors.

Do You Have a Claim to File?

The attorneys at Moll Law Group represent individuals throughout Illinois in personal injury and wrongful death claims, including those involving medical malpractice, transportation accidents, and premises liability. Our attorneys understand how important it is that you obtain compensation for your harm, and we can retain leading experts to present your case in settlement negotiations and at trial. Call us at 312-462-1700 or use our online form to set up a free initial consultation.

See More Posts:

Automated Driving Presents New Risks for Drivers, Illinois Injury Lawyer Blog, August 16, 2016.

Woman Fails to Provide Required Notice in Medical Malpractice Claim, Resulting in Dismissal, Illinois Injury Lawyer Blog, July 23, 2016.

Court Hold Adults Who Serve Alcohol to Minors May Be Liable for Related Injuries, Illinois Injury Lawyer Blog, August 9, 2016.

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