Every year, people file tens of millions of lawsuits. Many of these lawsuits involve businesses suing other businesses or individuals suing each other. Yet, in many cases, taking the suit all the way to a verdict isn’t necessarily ideal for anyone.
Sometimes, the best outcome for everyone is for the parties to settle a lawsuit instead. You might wonder why anyone would prefer a lawsuit settlement. Why settle out of court when huge jury awards dangle over the horizon?
Keep reading, and we’ll dig into five reasons to settle a lawsuit out of court.
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1. It’s Not Clear Who Will Win
In some cases, it’s pretty clear who will win. In other cases, either party might win, or both might come out of it looking bad. Sometimes the facts don’t point at an obvious victim or bad guy.
When cases get into ambiguous territory like that, both sides might decide that a settlement works best for everyone. It avoids a long, expensive trial and spares everyone the press coverage.
2. It’s Very Clear Who Will Win
In the lawsuit vs. settlement game, sometimes an obvious winner emerges. The facts support the person who filed the lawsuit. The person comes across as sympathetic.
In those situations, the person or business getting sued will often offer a settlement. The threat of a much bigger jury award and endless bad press about the company bullying its victim makes the lawsuit settlement attractive.
3. It’s a Quicker Path to Money
Some people file lawsuits because of an injury. They fell in a store and hurt their back. A company’s product contained a toxin that left someone ill.
In these scenarios, the person filing the suit often needs the money for medical bills or medical care. Reaching an agreement out of court is often the fastest route to obtaining a cash settlement they need.
4. Limit Expenses
Full-blown trials cost a lot of money. Any expert witnesses you call will likely charge for their travel and services. On top of this, the judge may make you pay fees to the other side’s lawyer if you lose.
5. Make Them Go Away
More than a few people file lawsuits that don’t have any real merit. This kind of frivolous lawsuit frustrates judges and the people getting sued. Yet, sometimes, paying a quick settlement beats the hassle of going through the work and expense of getting the lawsuit thrown out.
There Are Advantages When You Settle a Lawsuit
Sometimes a defendant will settle a lawsuit because it’s the most advantageous thing to do. The same goes for a plaintiff.
Settling a lawsuit can spare everyone the stress and expense of a long trial. It can spare sick people countless hours in court. Settlements can put money into the hands of people who need it a little sooner.
As a bonus, settling often makes the court happy because it clears up time for other cases.
Interested in more information about legal issues? Check out our business section for law-focused posts.