When you’re injured in an accident, one of the most important decisions you make is whether to settle your personal injury claim. But what happens if you realize, after signing on the dotted line, that the settlement didn’t cover everything? Or maybe new information has surfaced that changes everything—prompting the question: Can You Reopen a Personal Injury Case under these circumstances?
Can you reopen a personal injury case in California? It’s a common question, and the answer is: it depends. At Henderson Law, we’ve seen too many clients come to us after a rushed settlement, not realizing what their case was truly worth until it was too late. Don’t let that happen to you. In this blog, we’ll walk you through when you might be able to reopen a claim, what hurdles you’ll face, and how to protect yourself before it’s too late.
Don’t Settle for Less Than You Deserve
You’re dealing with pain, paperwork, and possibly pressure from an insurance company that wants to close your case fast. That’s no accident. Insurers know that it becomes incredibly difficult to reopen your case once you sign a Release of Liability. They bank on your lack of legal knowledge, hoping you’ll settle for less than your claim is worth.
That’s where we come in. We’ve been helping California clients get what they deserve for over 20 years. Our lawyers are here to make sure no one takes advantage of you, especially not when you’re at your most vulnerable.
The Big Question: Can You Reopen a Personal Injury Case?
Let’s get right to it: Can you reopen a personal injury case in California? Usually, no. Once you finalize a settlement and you’ve signed a Release of Liability, your case is legally closed. You’ve given up the right to pursue any further compensation related to that injury.
However, there are exceptions. If your situation falls into one of them, reopening your case may be possible, but time is of the essence.
What Is a Release of Liability?
A Release of Liability is a binding legal contract that typically comes with every personal injury settlement. By signing it, you agree not to sue or seek additional compensation from the defendant, even if new injuries or complications arise later.
Understanding the full extent of your injuries and damages is critical before agreeing to any settlement. Once you sign the release, your legal options narrow dramatically.
Exceptions That Might Allow You to Reopen a Case
Although rare, certain circumstances can override a signed settlement or a dismissed claim. Here are the most common exceptions
1. Fraud or Misrepresentation
You may have legal grounds to reopen your case if you were tricked, deceived, or deliberately misled during your settlement process. This includes situations where:
- The other party concealed evidence,
- The insurance company acted in bad faith, or
- Your attorney committed professional malpractice.
California law defines actual fraud and lays the groundwork for potentially voiding contracts under fraudulent circumstances.
2. Breach of Settlement Agreement
Did the other party fail to pay what they promised? If the defendant or insurer didn’t follow through on the terms of the settlement, the court may allow you to reinitiate the claim or compel enforcement. This is especially relevant if your settlement was structured over time (e.g., monthly payments) and the defendant defaulted.
3. Clerical or Contractual Errors
If the settlement agreement contains a material error, such as the wrong amount, the wrong party’s name, or incorrect facts, you may be able to argue that the contract is void. A judge may consider the agreement legally unenforceable, which allows rescission of a contract under certain conditions.
4. You Haven’t Signed Yet
An agreement does not bind you until it’s signed. You may still have room to negotiate or withdraw entirely if you’ve verbally agreed to a settlement but haven’t put ink to paper.
Remember that verbal agreements can sometimes be enforceable depending on the circumstances, so speak with an attorney immediately if you’re unsure.
Can a Lawsuit Be Reopened After Settlement?
In most cases, you cannot reopen a lawsuit after a settlement. Once the court approves or acknowledges a settlement, especially after a Release of Liability is signed, your legal avenue is closed unless one of the exceptions above applies.
The key takeaway? Don’t settle until you know exactly what your case is worth. At Henderson Law, we’ve spent decades calculating accurate claim values, and we won’t let the insurance company lowball you into a decision you’ll regret.
Can a Closed Insurance Claim Be Reopened?
Sometimes. It depends on whether:
- The claim was denied, and you’re appealing within the appropriate timeframe;
- The claim was closed due to inactivity, but you’re still within the statute of limitations; or
- New evidence has surfaced.
Insurers might reopen a claim if you provide compelling medical updates or documentation showing the initial evaluation missed key facts. That said, they’re not required to reopen it unless there’s a valid legal reason.
If a Case Is Dismissed, Can It Be Reopened?
This is another common question. The answer depends on how the case was dismissed:
- Without prejudice. You can refile the case later, as long as it’s within the statute of limitations.
- With prejudice. You cannot refile since it’s legally closed.
Judges sometimes dismiss cases due to procedural issues, such as missed deadlines or incomplete filings. In limited cases, a motion for relief can be filed, which allows for relief from a judgment due to mistake, inadvertence, surprise, or excusable neglect.
To summarize, can a dismissed case be reopened? It depends on whether the dismissal was with or without prejudice and whether there’s a valid legal reason to request the court’s intervention.
Don’t Wait. Let Henderson Law Protect Your Future.
At Henderson Law, we treat your injury like it’s our own. We’ve spent over 20 years fighting for justice for injured Californians, and we know the tactics insurers use to trap you into an unfair deal. You deserve full and fair compensation, and we won’t stop until you get it.
If you’ve been injured, or have already settled and suspect something went wrong, call us now or contact us online for a free consultation. Let us be your advocate, your guide, and your voice.
Resources:
Motion for relief, Cal. Civ. Proc. Code § 473 (1997), link.