Most civil cases settle well before reaching the trial stage of a lawsuit. Particularly when it comes to business disputes, the parties typically choose to settle their case rather than leave the fates of their respective businesses in the hands of an unpredictable jury or an unpredictable judge. Settlement can happen at any point in a lawsuit. It can even occur before the plaintiff files a lawsuit at all, if the parties can come together and reach a fair agreement soon after the dispute arises.
But is settlement always more beneficial? Let’s look at some of the key pros and cons of settling a case, and a few more issues to keep in mind when you’re deciding on the best path toward resolution of your case.
Benefits of Settling a Case
- Expense. Trials involve attorneys, expert witnesses, extensive depositions during the discovery process, travel, and time. If a case settles before going to trial, many of these expenses can be significantly reduced or eliminated altogether.
- Stress and Morale. Settlement may reduce some of the stress that a trial can bring on. Besides the anticipation of the unknown result, both sides of a lawsuit might fear getting on the witness stand and telling their story to a judge and jury, then being subject to cross-examination by the other side’s attorney. It also can affect employee morale and the overall workplace environment if contentious litigation is at the forefront of everyone’s minds.
- Privacy. Details of a civil case can be kept private when settled. When you take a case to trial, the court documents become a public record, and anyone can look at them, unless the judge orders the records sealed. When you settle a case, most of the details are kept out of the court documents, and aren’t a public record. Many settlement agreements also incorporate a confidentiality clause.
- Predictability. Any trial lawyer will tell you that a jury’s decision (and even a Judge’s) isn’t the easiest thing in the world to predict. By contrast, you can dictate the terms of your settlement agreement, or at least work with the other side to come up with a deal you can both live with.
- Finality. The losing party can appeal a court judgment, dragging out the process even longer. Settlements can’t usually be appealed.
Benefits of Going to Trial
- Impact: Sometimes a lawsuit involves a very personal or profound sense of right and wrong, or the results of the lawsuit can make an important point that impacts more than just the parties in the case
- Precedent: Sometimes settling would set a bad precedent for your business because of what the settlement might imply about your company’s principles or practices.
- Facts and Law: When the facts and law are very obviously on your side (as determined by a competent attorney), it might be best to take the case to trial because of your likelihood of success.
- Bad Settlement: Many people say there is no “bad” settlement, but if you have good facts and law on your side like mentioned above, then you may want to take the issue to trial if you simply cannot get the other side to make a reasonable settlement. In fact, being prepared to go “all the way” can put you in a better settlement position with the other side because they will be more inclined to compromise with the fear of an unknown trial.
Should you have any questions about potential business litigation and the implications of settlement or trial on your business, or would like to schedule a free initial consultation, please contact Waltz, Palmer & Dawson, LLC at (847)253-8800 or contact us online.
Waltz, Palmer & Dawson, LLC is a full-service law firm with various areas of service to assist your business, including: Employment Law, Intellectual Property, Commercial Real Estate, Business Immigration, Litigation and general Business Law services. Individual services include Estate Planning, Wills and Trusts, Probate, Guardianship, Divorce and Family Law.
This article constitutes attorney advertising. The material is for informational purposes only and does not constitute legal advice.
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