What is the difference between a claim and a lawsuit?

The difference between a claim and a lawsuit involves a civil dispute between two parties and the resolution of that dispute. A claim is the initial filing by one party against another in an attempt to settle a dispute without resorting to a trial. The person filing the claim is usually the party who feels they are entitled to compensation or a specific remedy in the dispute. The person receiving the claim is often the one who owes the filing party the money or other remedy. A lawsuit is when a dispute cannot be resolved through a claim, and instead progresses to a trial. Usually, both parties agree to take a case to trial in a lawsuit, as that is the only way to get a ruling on the matter and have it enforced by the court. A lawsuit can involve a jury or a judge, depending on the issue at hand. In California, insurance claims law requires the filing of a claim in most cases before the insurer pays the claim. If either party is unsatisfied with the resolution of the claim, they may opt to take the dispute to the court system and file a lawsuit. However, in the insurance claims context, a good faith negotiation effort must take place before filing a lawsuit. In California, you need a lawyer to help you navigate the claims and lawsuit process.

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