Can You Reopen a Personal Injury Case in California After It’s Settled?

Key Takeaways:

• Most personal injury cases in California cannot be reopened after settlement.

  • Once a settlement agreement is signed, including a release of liability, it is considered legally binding and final under California law, even if new injuries are discovered later.

• There are limited exceptions that may allow a case to be reopened.

  • Rare situations such as fraud, misrepresentation, bad faith by an insurance company, or a serious legal or clerical mistake in the agreement may provide grounds to challenge a settlement.

• Consulting a lawyer before settling is the best way to protect your rights.

  • Most post-settlement disputes stem from overlooked injuries or rushed agreements. Getting legal advice upfront ensures you understand the full value of your claim and the long-term impact of signing a release.

• A personal injury lawyer can evaluate whether your case qualifies for an exception.

  • An experienced California injury lawyer can review your signed settlement, investigate for legal violations, and help determine whether you have a valid path to reopen or contest the agreement.

Finalized Your Personal Injury Case…What if There Was a Mistake?

Settling a personal injury case in California can feel like crossing the finish line. After weeks or even months of negotiation, paperwork, and uncertainty, you finally receive a check and move on with your life. But what happens if new injuries surface after the fact? Or if you later realize the insurance company wasn’t being entirely truthful? Can you go back and ask for more money?

This is a question many people in California ask after signing a settlement agreement—especially if they later discover unforeseen medical complications, feel they were rushed into an unfair deal, or suspect the other side concealed important facts. Once you’ve settled a personal injury case, does the law allow you to reopen it?

The short answer is usually no…but there are exceptions. California law is very clear about the finality of settlements, especially in personal injury claims. However, situations involving fraud, misrepresentation, bad faith by an insurance company, or significant mistakes in the agreement may open the door—at least a crack. Additionally, the statute of limitations may prevent you from reopening a case if the legal deadline for taking action has already passed.

In this blog, we’ll break down everything you need to know about reopening a California personal injury case, including:

• Why cases are generally considered closed once settled

• What legal challenges make reopening difficult

• The rare exceptions that might allow you to revisit a claim

• How an experienced California personal injury attorney can help assess your options

Whether you’ve already settled or are considering a settlement soon, understanding your rights can help protect your future, especially when it comes to long-term medical costs or dealing with an uncooperative insurer.

Let’s take a closer look at the law, your rights, and the realistic options available if you’re thinking about reopening a personal injury claim in California.

But First, What is a Personal Injury?

California personal injury law is designed to protect people who have suffered harm (physically, emotionally, or financially) because of someone else’s negligence or wrongful actions. If you’re an injured person in California, understanding your rights under personal injury law is the first step toward seeking compensation for your losses. A personal injury claim allows you to pursue damages for a wide range of injuries, whether they stem from a car accident, medical malpractice, or another type of incident.

When you file a personal injury claim, you may be entitled to recover compensation for medical expenses, lost wages, and pain and suffering damages. These damages are meant to help you get your life back on track after an injury disrupts your daily life. The personal injury claim process in California can be complex, involving negotiations with insurance companies, gathering evidence, and sometimes even going to court. That’s why it’s crucial to consult with an experienced personal injury lawyer who understands California law and can guide you through your legal options.

Whether your injury was caused by a careless driver, a negligent property owner, or a medical professional’s mistake, California’s personal injury laws are there to ensure you have a fair chance to recover what you’ve lost. If you’re unsure about your rights or how much compensation you may be entitled to, a knowledgeable lawyer can help you navigate the process and advocate for your best interests.

Types of Personal Injury Cases in California

Personal injury cases in California cover a broad spectrum of incidents, each with its own legal requirements and challenges. Some of the most common types of personal injury cases include car accidents, medical malpractice lawsuits, slip and fall accidents, and dog bite injuries. Each type of case requires a different approach to proving liability and damages.

For example, in medical malpractice cases, the injured person (plaintiff) must show that a healthcare provider failed to meet the accepted standard of care, directly causing injury or harm. Medical malpractice lawsuits often involve complex medical evidence and expert testimony. In car accident cases, the focus is on proving that the defendant’s negligence, such as distracted driving or violating traffic laws, led to the accident and the resulting injuries.

California personal injury law also recognizes strict liability in certain situations, such as dog bites or defective products. In these cases, the injured person does not have to prove negligence; it’s enough to show that the injury occurred as a direct result of the defendant’s actions or product.

A personal injury attorney plays a vital role in helping injured individuals understand the specific laws and regulations that apply to their case. They can explain the nuances of California law, gather evidence, and build a strong case to pursue fair compensation for medical expenses, lost wages, and other damages. By understanding the different types of personal injury cases and how liability is established, you can make informed decisions about your legal options and increase your chances of a successful outcome.

Once Settled, The Claim is (Usually) Final in California

In most cases, you cannot reopen a personal injury claim in California once settled. When you settle, you sign a settlement agreement and release of liability that legally closes the case. This contract between you and the defendant or their insurance company means you accept a sum of money in exchange for giving up future claims related to that injury. California courts favor finality, considering settlements “presumptively valid” and binding. Once signed and paid, you forgo the right to sue again for that incident.

It doesn’t matter if your injuries worsen or you feel the settlement was too low. The vast majority of personal injury claims end in settlement, not trial, and the legal system enforces these agreements strictly to maintain trust. According to statistics, about 95% of lawsuits (including injury cases) end in a pre-trial settlement, meaning only 1 in 20 ever get resolved in court. Once a settlement is reached and the agreement is signed, the legal obligation the defendant owed to the plaintiff, such as the duty of care in negligence cases, is considered satisfied and closed.

Settlement agreements often include a “release of all claims” clause, waiving rights even to unknown or later-discovered injuries under California Civil Code §1542. This means you assume the risk of new problems not known at settlement. For example, settling a car accident claim for minor whiplash typically waives your right to seek more money if a serious spinal injury later emerges.

Why You Usually Can’t Reopen a Settled Case

Reopening a settled personal injury case is generally not allowed because of the settlement agreement and release. A settlement is a binding contract, and California law treats it as such. The courts want to uphold contracts that parties enter into freely. As the California Supreme Court has noted, once a settlement is reached, plaintiffs are bound by that agreement unless and until it is rescinded (voided) through proper legal steps. These legal steps constitute a legal action, such as filing a motion or lawsuit to challenge the settlement. You can’t simply ignore a settlement because you regret it later – it’s presumed valid and enforceable.

Here are a few key reasons why you usually can’t undo a settlement:

• Release of Liability: By signing a release, you explicitly agree not to pursue any further claims. This extinguishes your legal claim as if the case had gone to judgment. The release applies to all claims arising from the accident (even things you might not yet know about, thanks to that §1542 waiver in California). Since you’ve given up your claim in exchange for the settlement money, there’s nothing left to “reopen” – the claim no longer exists as a live controversy.

• Finality is Public Policy: California courts have a public policy interest in finalizing disputes. Allowing cases to be reopened willy-nilly would undermine the incentive to settle at all. Both parties rely on the settlement being final – the defendant pays money for peace of mind that the litigation is over. Courts generally will not disturb a settlement except in extraordinary circumstances. In fact, it’s often said that courts favor settlements and will enforce them like any other contract, absent a very good reason not to.

• Res Judicata (Claim Preclusion): If your case was filed in court and then settled (with a dismissal entered), the principle of res judicata may also prevent re-litigation of the same claim. Once a claim is resolved (by judgment or by a dismissal following settlement), you usually cannot sue again over the same incident. The settlement and resulting dismissal act as a final resolution.

• You Got Compensation for “Unknowns”: In California, because of the common inclusion of that 1542 waiver, you effectively agreed that even if new injuries or damages show up later, the settlement money is meant to cover those too. For example, if you settle a slip-and-fall case and later develop complications, you likely already waived your right to claim those complications. This is why settlement agreements often recite that you understand you could have unknown injuries but are still releasing all claims.

Once you settle and sign a release in a personal injury claim in California, you usually cannot reopen the case or make another claim for that same injury. The default rule: settlement = case closed.

Why It’s So Difficult to “Undo” a Settlement

Given the strong finality of settlements, trying to undo one is an uphill battle. You can’t reopen a case just because you feel the outcome was unfair or your injuries turned out worse than expected. To even attempt reopening, you must have grounds to challenge the validity of the settlement itself – essentially, you’d be arguing that the settlement contract should be voided or rescinded. And that’s only possible in very limited scenarios.

Challenging a settlement is basically asking a court to throw out the contract you signed. California law does allow contracts (including settlement agreements) to be rescinded in certain cases – but the bar is high. You must fit into a legal ground for rescission such as fraud, mistake, duress, or undue influence. In other words, you have to show something went fundamentally wrong in the making of the agreement.

If the case proceeds to litigation, a lawyer prepares the necessary legal documents and represents your interests in court. We’ll discuss these in the next section on exceptions. If you can prove one of those exceptions, the remedy is to rescind (cancel) the settlement contract and essentially start over. But proving it is not easy.

Here are some reasons it’s so challenging to undo a settlement:

• Burden of Proof: The person trying to set aside the settlement (that would be you, the plaintiff, in most cases) has the burden to prove a legal reason for undoing the deal. If you claim there was fraud or misrepresentation, for example, you need strong evidence of that. Courts require clear and convincing proof for allegations like fraud. It’s not enough to have buyer’s remorse or a hunch; you need solid facts.

• Rescission Requires Giving Back the Money: Under California law, if you want to rescind a settlement, you typically must return any settlement money you received (or at least offer to return it) as part of undoing the contract. In a practical sense, this can be very difficult, especially if you’ve already spent the funds on medical bills or other needs. (There are some exceptions where the court may allow delaying the return of funds until after a fraud case is resolved, but the general principle is you must restore what you got if the deal is undone.)

• Timing and Procedure: Trying to set aside a settlement usually requires prompt action. If you discovered the issue (say, fraud) and then sat on your rights for too long, a court may refuse to reopen the case. You’d typically have to file a motion in court or a new lawsuit alleging the settlement should be voided, and do so within a reasonable time. The legal procedures can be complex, and any delays can hurt your chances.

• Court Skepticism: Judges are naturally skeptical of reopening cases because it opens the floodgates for litigation to never end. They will scrutinize your reasons carefully. The default stance is that a deal is a deal. Unless you have a very compelling legal reason, the court will hold both parties to the settlement agreement’s terms.

Undoing a settlement is possible only in rare circumstances and with considerable legal hurdles. You must effectively prove the settlement was not a fair and valid deal in the first place (due to something like fraud, mistake, etc.). We’ll cover those exceptions next.

Exceptions: When Can a Settled Case Be Reopened?

Although it’s extremely uncommon, there are a few exceptions where reopening a personal injury case after settlement might be possible. Before considering these exceptions, it’s important to understand the basic terms that must be met, such as fraud, mistake, or bad faith, which form the foundation for an exception to apply.

These revolve around situations where the settlement itself was flawed or undermined by wrongful conduct. Below are the main exceptions in California:

Fraud or Misrepresentation

Fraud is a key exception that may allow reopening a settled personal injury claim. If the other side intentionally misled you about important facts – such as hiding assets, misrepresenting policy limits, or providing false accident details – a court may rescind the settlement under California Civil Code §1689(b)(1).

Proving fraud requires strong evidence and often involves filing a new lawsuit or motion. Keep in mind, you may need to return the settlement money to undo the agreement. Consulting an experienced personal injury lawyer is crucial if you suspect fraud.

Unforeseen Medical Complications or Injuries

Typically, settlements include a waiver (Civil Code 1542) that bars reopening a case due to new or hidden injuries discovered after settlement. However, in rare cases where a serious latent injury was genuinely unforeseen and not contemplated in the agreement, a mutual mistake claim might be possible under Civil Code §1689(b)(1).

If serious injuries were genuinely unforeseen at the time of settlement, this may sometimes provide grounds for reopening a case, though such situations are rare. Still, courts are reluctant to reopen settled cases for unforeseen medical complications unless linked to fraud or bad faith by the insurer. It’s vital to fully understand your medical condition and potential future medical treatments before settling.

Bad Faith by the Insurance Company

If an insurance company acted in bad faith – misleading you, unreasonably delaying payment, or offering unfairly low settlements – you may have grounds for a separate bad faith lawsuit. The goal of such legal action is to ensure the injured party receives a fair settlement that accurately reflects their damages.

While this usually does not reopen the original personal injury claim, it can lead to additional compensation. Proving insurer bad faith is complex, and legal representation is essential to pursue fair compensation and hold insurers accountable.

Serious Mistake or Error in the Settlement Agreement

A fundamental mistake affecting the settlement’s validity may justify rescinding the agreement under Civil Code §1689. This can include mutual misunderstanding of key facts, clerical errors, or omissions. Minor errors or buyer’s remorse are insufficient. If the mistake significantly alters the contract’s basis, a court might void or reform the settlement. An experienced personal injury lawyer can help evaluate if your case qualifies for this exception.

Other Rare Scenarios

Aside from the big four above, there are a couple of other rare situations to mention:

• Duress/Coercion: If you were forced or threatened into signing the settlement (e.g., signing under extreme pressure, or perhaps a vulnerable plaintiff being taken advantage of), that could void the agreement. This is very fact-specific and uncommon in a personal injury context, but not impossible (e.g., an adjuster says “sign this now or you get nothing and I’ll make sure you go bankrupt” – extreme tactics could qualify as duress).

• Capacity Issues: If the person who settled didn’t have legal capacity to do so (for instance, a minor whose settlement wasn’t court-approved, or someone mentally incapacitated at the time), the settlement can be invalidated. California law requires court approval for settlements involving minors or incompetents; without it, those can often be revisited.

• Multiple Defendants/Parties: This isn’t “reopening” the same case, but worth noting: if you settled with one liable party, you can’t reopen against them, but if another liable party was not part of the settlement, you might still pursue a claim against that other party. If your injury was caused by someone else’s negligence who was not included in the original settlement, you may still have the right to seek compensation from that party. (For example, you settle with a driver but later evidence shows a vehicle manufacturer was also at fault – you could possibly sue the manufacturer since your release was only as to the driver.) This isn’t overturning the settlement, just pursuing a different defendant.

How a Personal Injury Attorney Can Help You Evaluate Your Options

If you’re reading this and thinking, “My case was settled but one of those exceptions might apply to me,” your next step should be to consult an experienced California personal injury attorney. Why? Because as we’ve emphasized, reopening a case is legally complex and rarely granted. A knowledgeable lawyer can review the facts of your settlement and determine if there are any grounds to challenge it.

Here are ways a personal injury lawyer can assist in this situation:

• Case Evaluation: A lawyer will thoroughly examine your settlement agreement, the circumstances under which you signed it, and any new evidence or issues. They know what red flags to look for (e.g., signs of insurer misrepresentation, clauses in the contract, etc.). This expert review is crucial to realistically assess if you have a case for reopening. Often, people might feel something was “off” about their settlement, but a lawyer can tell you if that legally translates to fraud, mistake, or another actionable issue. Consulting a personal injury lawyer can also give you a better idea of the legal process, estimated timeline, and potential outcomes based on your specific situation.

• Explaining Your Rights and Options: You’ll get clear advice on what your options are. In most cases, the advice might be that unfortunately you are bound by the settlement. But if there is a potential exception, the attorney will explain the process, likelihood of success, and potential consequences (for instance, having to return the settlement money if you proceed to challenge it).

• Navigating the Legal Process: Should there be valid grounds to move forward, your attorney can take the necessary legal steps, such as filing a petition or lawsuit to rescind the settlement. This involves drafting legal pleadings that articulate why the settlement should be voided (citing the fraud, mistake, etc. with supporting evidence). Your attorney would handle court hearings, negotiate with the opposing side, and advocate on your behalf. Without a lawyer, it would be extremely daunting to try this on your own – the legal standards are nuanced, and the other side (likely an insurance company with its own lawyers) will certainly push back.

• Pursuing Alternative Remedies: If reopening the case isn’t feasible, a good attorney may spot other remedies. For example, if the problem was your prior lawyer mishandling the case (legal malpractice), you might have a claim against that attorney for the difference in what you should have gotten. Or if it’s insurer bad faith, as discussed, the remedy might be a separate bad faith lawsuit. These are distinct from reopening the original case, but they could help you recover compensation in a roundabout way. An attorney can identify these angles and help you pursue them if appropriate.

• Negotiating a Post-Settlement Resolution: In some instances, just the act of your attorney investigating or challenging the settlement might bring the other side to the table to quietly resolve the issue. For instance, if there truly was undisclosed evidence or insurer misconduct, the defense might prefer to pay something additional rather than litigate the fraud claim publicly. Your lawyer can engage in these discussions and try to obtain a fair outcome for you without a protracted court battle, if possible.

Most importantly, a personal injury attorney can give you peace of mind. If you’re worrying “Did I sign away my rights unfairly?” or “Am I stuck with this low settlement even after what happened?”, getting a legal opinion can settle those questions.

Having experienced personal injury attorneys on your side can make a significant difference in the outcome of your case. Sometimes the answer might be tough to hear, but at least you’ll know where you stand and can move forward accordingly. Personal injury victims should consider taking advantage of a free consultation offered by RMD Law to discuss their case with no obligation.

Before Settlement – Prevention

It’s worth noting, for others out there who haven’t settled yet: involve a lawyer before you settle! A seasoned personal injury lawyer will help ensure you don’t accept a premature or inadequate settlement. They will calculate your damages (including future medical needs) and understand the implications of that 1542 waiver and release language.

A lawyer will also advise you on damage caps in California, and help you understand the difference between economic damages (like medical expenses and lost wages) and non economic damages (such as pain and suffering) that may affect your compensation. As the saying goes, an ounce of prevention is worth a pound of cure. Once you sign, it’s often too late – so having legal counsel from the start can prevent the regret of an unfair settlement.

Know Your Rights Before – and After – You Settle

In California, reopening a personal injury case after settlement is very difficult. Generally, the settlement agreement and release bar further claims, ensuring finality in the legal process. Exceptions exist for rare cases involving fraud, misrepresentation, coercion, mutual mistake, or insurer bad faith, but these are hard to prove. Exceptions may also arise in the context of a personal injury lawsuit involving issues like pure comparative negligence or wrongful death claims, each of which has its own legal rules and limitations.

For most, the answer to if you can reopen a personal injury claim in California after it’s settled is no. Settlements are final, so it’s vital to negotiate carefully and understand the rights you waive before signing. Always have a lawyer review your release to know exactly what claims you give up. If you are unsure about your settlement, seek legal advice to protect your rights and financial future before signing any agreement.

If you suspect your settlement falls under these exceptions, such as being misled or pressured, contact RMD Law today at (949) 828-0015. A personal injury lawyer can evaluate your case during a free consultation, advise on challenging the settlement, or suggest alternative legal remedies.