Detailed answer — What happens if you don’t settle a personal injury claim before the statute of limitations in Texas?
In Texas, most personal injury claims must be filed in court within two years after the date the injury occurred. If you do not resolve (settle) the claim and you also do not file a lawsuit before that two-year deadline passes, the defendant can bar your claim by raising the statute of limitations as a defense. The primary statute is Texas Civil Practice & Remedies Code §16.003: Tex. Civ. Prac. & Rem. Code §16.003.
What “barred” means in practice
- If the statute of limitations expires, a court will generally dismiss your lawsuit if the defendant timely asserts the defense. A dismissal on statute grounds normally prevents you from recovering on that claim later.
- The court can dismiss the case with prejudice, meaning you cannot re-file the same claim.
- Even if defendant does not immediately raise the defense, the expired statute can be used later (for example at summary judgment or trial) and will typically end your ability to win money for the injury.
Common exceptions and ways to preserve your claim
There are limited exceptions and tools that can preserve or extend your right to sue. These include:
- Tolling agreements or written extensions: the defendant can agree in writing to extend the time to sue. This is sometimes called a “standstill” or tolling agreement.
- Legal incapacity: some tolling rules apply if the injured person is a minor or is legally incapacitated, which may delay the start of the limitations period (seek counsel to confirm how this applies to your facts).
- Equitable doctrines: in rare cases, courts may allow a suit that would otherwise be time-barred if the defendant fraudulently concealed the harm or took steps to prevent discovery of the claim. These exceptions are fact-specific and strictly applied.
- Filing suit before the deadline: the safest way to preserve a claim is to file a petition in court before the limitation period expires, even if settlement talks continue afterward.
Hypothetical example
Suppose you were hurt in a car crash on January 1, 2023. Under the normal two-year rule, you must file a lawsuit by January 1, 2025. If you negotiate but do not reach a settlement and you do not file a lawsuit or sign a tolling agreement by January 1, 2025, the defendant can ask the court to dismiss your case as time-barred and you will likely lose the right to recover damages.
Practical consequences beyond losing the right to sue
- Insurance companies may refuse to negotiate after the statute runs unless the insurer or defendant agrees to reopen discussions.
- You may lose leverage; defendants have stronger settlement positions when the lawsuit is time-barred.
- Important evidence (witness memories, surveillance footage, records) can degrade over time, hurting the strength of any later attempt to obtain relief.
Recommended steps if you are negotiating and the deadline approaches
- Check the deadline: calculate the limitations deadline from the date of injury and confirm whether any tolling events apply.
- File suit if needed: if settlement talks are ongoing but the deadline is near, file a lawsuit to preserve your claim and continue negotiating.
- Request a tolling agreement: ask the defendant to sign a written tolling or standstill agreement to extend the negotiation period and avoid filing suit immediately.
- Preserve evidence: keep medical records, bills, photos, and witness contact information safe and organized.
- Talk to a personal injury attorney: a lawyer can identify applicable exceptions, calculate deadlines precisely, prepare a petition, or draft a tolling agreement.
Helpful Hints
- Do not rely solely on settlement talks to protect your claim. Negotiations do not stop the clock unless you have a written tolling agreement.
- Always verify the governing statute: most personal injury claims in Texas are governed by Tex. Civ. Prac. & Rem. Code §16.003 (two-year limitation).
- If you are a minor or believe the defendant concealed the injury, consult a lawyer quickly—special rules may apply that alter the deadline.
- Filing a timely suit preserves your claim, but it also starts the litigation clock and may create immediate filing costs—ask your attorney about costs and case strategy.
- Keep clear written records of all communications with insurers and the defendant; these records can matter if a limitations dispute arises.
Disclaimer: This article explains general principles under Texas law and provides educational information only. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, contact a licensed Texas attorney promptly.