You were injured, filed a claim, accepted a settlement, and tried to move on. But now maybe the medical bills kept growing, your injuries got worse, or you found out the insurance company left out critical coverage, and you’re wondering if you gave up too soon. If you’re asking whether you can still sue after settling, you’re not alone. In Arizona, there are situations where a signed settlement doesn’t have to be the final word, and you may still have legal options.
Can You Sue After a Settlement Is Final in Arizona?
In many cases, no, and once you’ve signed a settlement agreement and a release of liability, that’s the end of the legal road. But not always. If something went wrong in the process, you may still have the right to sue, even after the insurance company cut a check.
It all depends on how the settlement was handled. If you were misled about your rights, pushed to settle too early, or never signed a proper release, the agreement might not be legally binding. And in Arizona, you generally have up to two years from the date of the accident to file a personal injury lawsuit under A.R.S. § 12-542, even if you already received some money.
Another common issue is when a settlement only covers part of the claim. Maybe the insurance company paid for your car repairs but ignored your medical bills. Or maybe a third party was involved, like a rideshare company or commercial driver, and their role was never fully addressed. If your injuries got worse or you found out new information after settling, it could mean the door to legal action is still open.
If something doesn’t feel right about the way your claim was resolved, it’s worth getting a second opinion. To really understand your options, it helps to first break down what a settlement actually means under Arizona law.
What Does It Mean to “Settle” a Claim?
A settlement typically means the injured party accepted payment and signed a release of liability, which legally closes the case. Without that signed release, though, the claim may still be open, and under Arizona Revised Statutes § 12-542, the other party or you can still file a lawsuit within two years of the accident.
This often happens when only part of the claim is resolved. For example, your insurance might’ve paid for property damage but never reached an agreement on injuries. Then you may still have a valid legal claim. That’s why it’s important to understand the full scope of what the settlement actually covered.
But just because a settlement was reached doesn’t always mean your case is fully closed. There are warning signs that your agreement may not be as final as you think.
Signs Your Settlement Might Not Be Final Or Fair
Not every settlement is airtight. If you’ve accepted payment from the insurance company but still feel like something’s off, like medical bills piling up or new injuries surfacing, it’s possible the agreement didn’t fully close your case. Let’s look at the signs when your settlements might still be overturned:
No Signed Release of Liability
Without a signed release, the insurance payment alone doesn’t end your legal rights. If you never signed that document, or weren’t fully informed when you did, you may still be able to file a claim.
It Only Covered Property Damage
Many accident victims don’t realize their payout only covers car repairs. If you never received a separate injury settlement and didn’t sign a release for bodily injury, that part of your claim could still be open.
You Discovered New Injuries Later
If you settled quickly and later found out your injuries were worse than you thought, reopening the claim is hard, but not always impossible. This is especially true for concussions, back issues, or nerve damage that wasn’t diagnosed early.
The Wrong People Were Held Liable
If a rideshare driver, commercial vehicle, or another third party was involved but never included in the original claim, you might still have the right to file against them as long as you didn’t sign a release for those parties.
If any of these situations sound familiar, the next question is whether you can still take legal action. Arizona law allows lawsuits after settlement in limited but important circumstances.
When Can You Sue After Settling?
Once you sign a release of liability, your options narrow, but they don’t disappear completely. Some cases deserve a second look, especially if you were misled, pressured, or left in the dark during the settlement process.
Fraud or Misrepresentation
If your insurer or the other party withheld critical information like hidden coverage or accident details, your settlement might not hold up. Arizona law allows victims to challenge releases signed under fraudulent circumstances.
Example: if you were told the at-fault driver only carried minimum coverage, but later discovered they had a much larger policy, you may have grounds to challenge the agreement.
Breach of Settlement Terms
If the other side agreed to cover future care or pay a set amount, and then didn’t, it may be grounds for legal action. This isn’t reopening the injury claim; it’s enforcing what was promised.
Example: if your settlement included payment for physical therapy sessions, but the insurer never issued those funds, you could sue to enforce the agreement.
New Liable Parties Come to Light
You might’ve settled with the driver, but if another party, like a vehicle manufacturer or road contractor, played a role and wasn’t included in the release, you may still be able to pursue a separate claim.
Example: if a defective airbag worsened your injuries and the manufacturer wasn’t part of the original settlement, you could bring a new claim against them.
Even if one of these situations applies, remember that Arizona law generally gives you two years from the date of the accident to file a lawsuit. And one of the biggest reasons victims return to court is because of how their insurance company handled the claim in the first place, which is worth discussing in more detail.
When Insurance Companies Mishandle Your Claim
Not every settlement is fair, especially when the insurance company controls the process. We’ve worked with clients who accepted low offers because they were in pain, out of work, and just needed something to get by. But under Arizona law, insurance companies are legally required to act in good faith when handling injury claims. That means they must evaluate your case honestly, consider all medical evidence, and communicate clearly about your rights and options.
When they don’t, that’s where bad faith comes in, and it can open the door to legal action, even after you’ve accepted a settlement.
You might have a case if the insurer:
- Rushed you to settle before your medical treatment was finished
- Ignored or downplayed serious injuries to reduce their payout
- Hid available coverage or misrepresented the policy limits
- Pressured you into signing a release without explaining your rights
Bad faith doesn’t always look like fraud. Sometimes it’s just the insurer refusing to take your situation seriously. But if you settled a claim and later realized the payout didn’t come close to covering your losses, it’s worth having a lawyer review what happened. You may be able to file a new claim based on how your original case was handled.
This kind of legal action is complex, but in Arizona, it’s possible when the insurance company failed to treat you fairly the first time around. Lastly, let’s look at how to avoid problems with reopening a settlement if you’re still at the start of the personal injury claim process.
How to Protect Yourself from Future Legal Trouble
Making the right choices early can save you from years of stress, missed compensation, and legal battles later. Be sure to consider the points below before signing a release.
- Don’t settle too quickly. If you accepted a payout before finishing treatment or before doctors understood the full impact of your injuries, you may have given up more than you realized. Once a release is signed, your options shrink dramatically.
- Check the release of liability. This document decides whether your case is truly closed. If it wasn’t signed or didn’t clearly include all injury claims, you may still have legal options.
- Make sure all damages are included. Some settlements only cover property damage, like car repairs, while leaving out medical costs or lost wages. If your injuries weren’t part of the deal, you may be underpaid from the start.
- Get confirmation in writing. If you’re unsure about what your settlement actually covered, request documentation. Knowing exactly what was resolved is the first step in deciding if another claim is possible.
Of course, knowing your rights is one thing, and enforcing them is another. This is where having the right lawyer on your side can make all the difference.
Do You Need a Lawyer If You Want to Sue After Settling?
If you’re questioning whether your settlement was fair, or if you’re about to sign one, it’s worth speaking with a lawyer first. Once you accept, your options narrow fast, and it can be difficult to undo mistakes later.
You should get legal advice if:
- You were pressured into accepting a quick payout before finishing treatment.
- The insurer ignored or hid coverage that could have applied to your case.
- Another party who may share responsibility was left out of the claim.
- You signed paperwork without fully understanding what rights you were giving up.
Even if you haven’t signed yet, getting a lawyer’s input before you do can prevent you from being shortchanged.
At Esquire Law, we can evaluate whether your settlement has legal grounds to be reopened, and if it does, our team can take on the entire process for you. From investigating what went wrong to negotiating or litigating for a truly fair outcome, our personal injury attorneys handle the heavy lifting so you can focus on healing.
And if you’re still one step away from signing a settlement, don’t go it alone. Getting our team’s input before you agree can make the difference between being stuck with a low offer and securing the full compensation you deserve.