FAQ: What happens if I do not settle my personal injury claim before the statute of limitations expires in NJ?

Short answer: If you do not settle and you allow the statute of limitations to expire without filing a lawsuit (or otherwise extending/tolling it), you generally lose the right to sue and recover money for your injury. There are limited exceptions, but courts and defendants commonly dismiss untimely cases as legally barred.

Detailed Answer

1. What is the basic rule in New Jersey?

Most personal injury lawsuits in New Jersey must be started within two years of the date the injury occurred. This limit is set by the New Jersey statute of limitations for personal injury claims (N.J.S.A. 2A:14-2). If you wait longer than that without filing a complaint, the defendant can move to dismiss the case and the court will typically bar your claim.

Reference: N.J.S.A. 2A:14-2. (See the New Jersey Legislature website for statutory text: https://www.njleg.state.nj.us/.)

2. What does “settle” mean vs. “file a lawsuit”?

To settle means you and the other side agree on money (or another resolution) and you sign a release ending the claim. Filing a lawsuit means you start a court case before the statute of limitations runs. You preserve your right to pursue a judgment even if negotiations continue after filing.

3. What happens if the statute runs before I settle and I have not filed?

• You generally cannot bring the claim in court anymore. A defendant will raise the statute-of-limitations defense and the court will likely dismiss your lawsuit if you try to file late.
• If you try to litigate after the deadline, a settlement you strike later is voluntary; the deadline prevents forced recovery through the courts.
• Some jurisdictions and situations allow equitable tolling or other exceptions (see next section), but those are limited and fact-specific.

4. Are there exceptions or ways to preserve rights after the clock runs?

Yes, but they are narrow and fact-specific. Common possibilities include:

• Tolling for minors or incompetents: If the injured person is a minor, the limitations period may be tolled until they reach majority under NJ law. Specific tolling rules and periods depend on statutory and case law.
• Discovery rule: If an injury was not and could not reasonably have been discovered right away (for example, certain latent medical injuries), the limitations period may run from the date of discovery. New Jersey applies the discovery rule in appropriate cases.
• Fraud or concealment: If the defendant hid facts that prevented you from discovering the injury, courts may toll the statute while the concealment continued.
• Written tolling agreement: You and the defendant can sign a written agreement that extends the time to sue (a tolling or extension agreement). This is a common practice when parties continue negotiations but the filing deadline is near.
• Claims against government entities: If your claim is against a public entity, the New Jersey Tort Claims Act imposes short notice requirements (and different deadlines) that are stricter than the ordinary two-year rule. For example, you often must file a notice of claim within a short period (commonly 90 days) before you can sue. See N.J.S.A. 59:8-8 and related provisions on the New Jersey Legislature site: https://www.njleg.state.nj.us/.

5. Practical illustration (hypothetical)

Imagine you slipped at a store on January 1, 2023, and suffered a broken wrist. The store’s insurer offers a settlement on December 1, 2024 that you think is low. The two-year statute would expire on January 1, 2025. If you do not accept the offer and you also do not file a complaint by January 1, 2025 (or obtain a written tolling agreement), you will likely be barred from suing the store after that date.

6. Why filing before the deadline matters

Filing a timely complaint preserves your legal rights and pressure-points in negotiations. You can often continue settlement talks after filing. Filing also avoids reliance on uncertain exceptions and gives you the option of asking a court for damages if negotiations fail.

Helpful Hints

• Note the basic rule: typical personal injury SOL in New Jersey = 2 years from the injury (N.J.S.A. 2A:14-2). Confirm the accrual date for your case — sometimes the discovery rule applies.
• If the defendant is a public entity, check government-claim notice deadlines (Tort Claims Act — see N.J.S.A. chapter 59).
• If settlement talks are ongoing and the deadline is near, ask the other side to sign a written tolling or extension agreement so you do not have to file immediately.
• Preserve evidence now: medical records, photos, witness names, incident reports. Evidence becomes harder to collect over time.
• Do not sign a general release or accept money without understanding that it may waive your right to sue. Consider consulting an attorney before signing any release.
• Consult a New Jersey personal injury attorney early — even just to calendar the statute and advise on tolling options or whether you should file now.
• Avoid posting details about your injury on social media; insurers and defense lawyers use those posts to dispute claims.

Where to read the statutes and learn more: New Jersey Legislature website (statutes): https://www.njleg.state.nj.us/ and New Jersey Courts information pages: https://www.njcourts.gov/.

Disclaimer: This article provides general information about New Jersey law and is not legal advice. It does not create an attorney-client relationship. For advice about a specific case, talk with a licensed New Jersey attorney.