Detailed answer: What happens if you don’t settle a personal injury claim before Michigan’s statute of limitations?

Short answer: In most Michigan personal injury cases you have three years from the date the injury occurred to file a lawsuit. If you let that time expire without filing suit or otherwise preserving your claim, the defendant can ask the court to dismiss the case as time-barred and you will likely lose the right to recover money for your injury. Special rules and limited exceptions can extend or pause that deadline in some situations.

How the time limit works (plain language)

Michigan law generally requires an injured person to file a civil lawsuit within three years after the cause of action accrues. See Michigan Compiled Laws, MCL § 600.5805. “Cause of action accrues” usually means the date the injury happened or the day the injured person discovered (or reasonably should have discovered) the harm that gives rise to the claim.

What happens if you don’t settle before that deadline?

• If you file a lawsuit before the deadline: Settlement remains possible at any stage. Filing a complaint simply preserves your right to pursue money in court if negotiations fail.
• If you do not file a lawsuit and you do not reach a settlement or sign a tolling agreement before the deadline: The claim becomes time-barred in most cases. A time-barred claim usually cannot be enforced in court, meaning you will likely be unable to collect compensation from the person or company who injured you.
• If the defendant raises the statute-of-limitations defense and the court agrees, the case will be dismissed (usually with prejudice), and you generally will not be able to refile the same claim.

Common exceptions that can preserve or extend the deadline

Even if you miss the initial filing deadline, Michigan law and court decisions recognize several limited exceptions that may toll or pause the statute of limitations. Examples include:

• Minor plaintiffs: If the injured person is a minor, the limitations period may be tolled until the minor reaches the age of majority.
• Incapacity or disability: If the injured person was legally incapacitated (for example, mentally incompetent) at the time, the clock may not start running until incapacity ends.
• Fraudulent concealment: If the defendant took active steps to hide the cause of injury, courts may apply equitable tolling so the plaintiff can bring the claim after discovery.
• Tolling by written agreement: The parties can sign a written tolling agreement to pause the limitations period while they negotiate a settlement.
• Claims against governmental bodies: Claims against the state or local governments often require different notice rules and shorter deadlines under the Michigan Governmental Liability Act (MCL 691.1401 et seq.). Those statutory notice requirements are strict and different from ordinary tort deadlines. See MCL § 691.1401 et seq..

Practical examples

Example 1 — Car crash: You are injured in a crash on March 1, 2022. Unless an exception applies, you must either settle or file a lawsuit by March 1, 2025, to preserve your right to sue the other driver.

Example 2 — Government defendant: You are injured because of a pothole on a city street. In addition to the ordinary three-year rule, you must follow the city notice and claim procedures found in the Governmental Tort Liability Act—these procedures often require quick written notice to the municipality and can be more restrictive than ordinary tort timelines.

If the statute of limitations already expired — what you can do

• Check for exceptions: Talk to an attorney right away to see if any tolling rules or equitable exceptions apply.
• Look for a written tolling agreement: In negotiation, ask the defendant to sign a tolling agreement if you need more time to investigate or negotiate. A tolling agreement preserves your right to sue while you negotiate.
• Consider filing a complaint before the deadline next time: If your deadline is approaching and settlement talks are ongoing, filing a complaint (or at least a protective claim) preserves your rights while talks continue.
• If time already ran out and no exception applies: Recovery in court will likely be barred. An attorney can review whether any narrow equitable relief may be available, but courts rarely allow lawsuits after the limitations period expires without a recognized exception.

Steps to take now to protect your claim

1. Identify your accrual date. Determine the date the clock started running (often the date of injury or date of discovery).
2. Count the time. For most Michigan personal injury claims the deadline is three years from the accrual date. See MCL § 600.5805.
3. Preserve evidence. Keep medical records, photos, police reports, witness contacts, and receipts for related expenses.
4. Consider a written tolling agreement if negotiations need more time.
5. Talk to an attorney early. A lawyer can confirm deadlines, explain exceptions, and advise whether to file suit to protect your right to recover.

Why filing before the deadline can be a good strategy

Filing a lawsuit before the statute runs protects your right to seek damages while you keep negotiating. It avoids the worst outcome—losing your claim purely because time ran out. Many cases still settle after a complaint is filed, but filing gives you leverage and a backup plan.

Helpful hints

• Don’t assume a settlement deadline is required; you can file a lawsuit anytime before the statute runs.
• Get clear written timelines—either a tolling agreement or a schedule—if negotiations are ongoing and the statute is near.
• If the defendant is a government entity, act fast and check the Governmental Tort Liability Act for special notice rules: MCL § 691.1401 et seq..
• Keep copies of all correspondence and offers during settlement talks; those documents can help show whether the parties agreed to pause the clock.
• If unsure about accrual or tolling rules, speak with a Michigan personal injury attorney promptly—delay can eliminate legal options.

Disclaimer: This article explains general Michigan law and is for educational purposes only. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Michigan attorney promptly.