In legal contexts, a claim refers to a formal assertion of a right, demand, or entitlement. Whether used in a courtroom, insurance office, or business transaction, a claim represents one party’s effort to obtain compensation, enforce a right, or seek a remedy due to a perceived loss, injury, or breach.
Understanding what a claim is—and how it functions across different legal and financial systems—is essential for navigating disputes, agreements, and liability.
What is the Legal Definition Of a Claim?
In legal terms, a claim is a legal declaration or demand someone makes seeking compensation or alleging an owed payment for loss caused to them. A claim is usually based on asserting loss from a contract or negligent tort. A person or entity can make a legal demand against another party, which can be a person or entity, for the claimed wrongdoing.
What Are the Types of Claims?
There are several types of claims a person can make when filing a lawsuit. Here are some of the common types:
- Contract Claims: Claims that arise from a breach of contract. This type of claim may involve the failure to perform a contractual obligation or the improper performance of a contractual obligation.
- Tort Claims: These Claims arising from civil wrongs do not include contractual claims such as breach of contract. Tort claims may include allegations of negligence, intentional torts, product liability, or other types of injury.
- Constitutional Claims: Claims that allege a violation of an individual’s constitutional rights, such as violating one’s freedom of speech or a lack of equality under the law.
- Statutory Claims: Claims asserting a legislative statute violation or other law enacted by a government body.
- Property Claims: Claims that involve disputes over the ownership or use of real estate (land or buildings) or personal property.
- Equitable Claims: Claims that involve the application of equitable remedies, including injunctions, specific performance, or rescission.
- Declaratory Judgment Claims: Claims that seek a declaration from the court to define the parties’ rights and legal obligations to one another in regard to their legal relationship.
What Makes a Claim Valid?
In order to be a valid claim, it must have merit, be based on provable facts, and be supported by the law. The assertations must be factual, complete, and have evidence or other forms of proof. When a claim is invalid due to a lack of merit, it is called an unreasonable claim.
What Is the Process to File a Claim?
Filing a legal claim varies based on the type of claim and the jurisdiction. Filing a claim typically involves several key steps:
- Identify the Basis: Determine the reason for your claim, such as an injury, property damage, breach of contract, or legal wrongdoing.
- Gather Evidence: Collect supporting documentation—photos, medical records, receipts, or witness statements—to prove your claim.
- Notify the Other Party: Provide written notice to the responsible party or their insurer, often required before formal legal action.
- Complete Necessary Forms: Submit the appropriate claim forms. This may be with an insurance company, court, or government agency, depending on the type of claim.
- File the Claim: Officially submit the claim within the required deadline (statute of limitations), either informally (e.g., insurance) or through court by filing a complaint or petition.
- Await Response or Proceed Legally: The other party may accept, deny, or negotiate the claim. If unresolved, you may need to escalate to mediation, arbitration, or litigation.
Tip: Consult an attorney if your claim involves legal complexity, injuries, or high-value disputes to ensure it’s filed correctly and on time.
Can Closed Claims Be Reopened?
Yes, it is possible to reopen claims, depending on the circumstances and the applicable laws. However, it is exceptionally rare for a case to be reopened after a settlement agreement is signed.
Generally speaking, the typical reason a claim could be reopened is if the settlement agreement is invalidated, which makes the terms null and void. It takes significant situations to invalidate a settlement contract, such as the claimant being under duress when signing or acts of fraud. Ultimately, it should not be expected that a claim be reopened based on a less-than-satisfactory case outcome.
What is the Limitation Period to File a Claim?
The limitation period—also known as the statute of limitations—is the legally defined time limit within which a claim must be filed. It varies based on:
- Type of claim: Personal injury, breach of contract, property damage, etc.
- Jurisdiction: Each state or country has its own laws and deadlines.
- Discovery rule: In some cases, the clock starts when the harm is discovered, not when it occurred.
Failing to file within this period may result in your claim being permanently barred. It’s crucial to check the specific deadline for your situation or consult a lawyer.
What is the Difference Between Litigation and a Claim?
While related, a claim and litigation are distinct legal concepts:
- Claim: A claim is the initial demand or assertion of a legal right. It may be informal (like a complaint to an insurer) or formal (like filing a lawsuit). A claim can exist without court involvement.
- Litigation: Litigation refers to the legal process of resolving a dispute in court. It begins when a lawsuit is filed based on a claim that wasn’t resolved through negotiation or settlement.
Key Difference: A claim starts the dispute, while litigation is the formal legal action that may follow if the claim is denied or unresolved.
How Do Personal Injury Claims Work?
A Personal injury claim works like most civil suits, except the claim is not filed until after an injured victim finishes medical treatment and sends the demand letter to the liable party.
The personal injury claim itself begins with the injured person filing a complaint with the court and naming the responsible party as the defendant. The complaint outlines the facts and circumstances of the case and the damages and losses the injured person has suffered. The defendant then has to respond to the filed complaint.
One response can be to request the court’s permission to file a counterclaim against the injured person. Insurance companies will do this if they believe the injured person who filed the claim is, in fact, responsible for the accident. Even after the suit is filed, most personal injury claims resolve before they enter a courtroom for trial.
At the trial, each side can present its case, and a judge or a jury will decide who was at fault and what compensation and damages should be awarded to the injured person.
