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Claim & Lawsuit: What Is The Difference?

When it comes to administration and terminology, it is pretty easy to get confused in the sea of information pretty quickly.

That being said, claims and lawsuits are two terms that can easily be mixed up if you are not so familiar with them. But don’t worry – in this article, we are going to explain to you the differences between the claims and lawsuits as well as the basics of what you need to know about them.

A Claim Precedes a Lawsuit

Generally speaking, a claim is filed first before going for a lawsuit. In most cases, unless the dispute is more complicated, the problem can be resolved by filing a claim. If that’s not the case and the claim can’t be easily resolved, then the claim can result in a lawsuit.

First Step: Filing a Claim

There are many situations in which you could file a claim – a personal injury claim, an insurance claim, or pretty much any other situation where one party believes it has been wronged by another. Let’s explain the process in more detail by providing an example. If you have entered into a contract with an insurance company, it is of utmost importance that you know what is an insurance claim and what steps should be made if there is a problem.

The claim arises when the insurance company fails to do what is stated on the contract. Depending on the contract, you may need to do certain things to have a good claim, but the claim is nevertheless going to be valid when the assignments of the insurance company aren’t done or aren’t done right.

Going to Court

If the claim didn’t get you properly compensated, the next step is the lawsuit, which is then followed by going to court. As far as the terminology goes, the party who filed a lawsuit is called the plaintiff, while the other party, the one being sued, is called the defendant. A lawsuit is sometimes also referred to as a case, so, a case or a lawsuit is both conceptually and terminologically different from a claim.

Who Oversees the Claim or a Lawsuit?

This is also an important aspect that draws a line between the claim and a lawsuit. So, in a lawsuit, a judge is the one that oversees the case, and if the issue is important enough, a jury might be involved in it is well. On the other hand, when it comes to claims, there is no judge or jury to oversee the process – it’s pretty much between parties and their lawyers.

The Length of the Process

Claims are resolved a lot faster than in the case of a lawsuit, especially because a lawsuit can result in an appeal. The appeal is basically a process of evaluation of the decision, so if any party isn’t satisfied with the result, it can be done, but this often means a new trial and can take several years before the case is settled.

So basically, what comes first is the claim, and if the problem is not resolved, then it’s time to claim a lawsuit. When it comes to things like this, the most important thing is to do your research before acting. So, be sure to do that, consult with a lawyer, know your rights, and the dispute is going to be resolved in no time.

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    Claim & Lawsuit…

    by Tanya Shaw Time to read this article: 8 min
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