Settlement or Trial? Pros and Cons - A Lawyer's Perspective
Some of the Main Pros and Cons of Settling Vs. Litigation from the Eye of a Lawyer
Sebastian Ungulaar, Yahoo Contributor Network
Apr 9, 2012 "Share your voice on Yahoo websites. Start Here."
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Post a commentIn almost every lawsuit there will come a time when you'll be presented with a settlement offer and have to decide whether or not to take the offer or proceed to trial. Settlements, in general, are the ending of a lawsuit without going to the end of trial. This could mean arbitration, mediation, or simply meeting face-to-face with the person you're suing. Settlement offers can come at any point in a lawsuit, especially before expensive undertakings, such as depositions or the eve of a trial. So what's your best option? There really no best answer and your choice should be determined based on the facts of your case and your own personal needs. Here are some of the pros and cons to help you decide.

SETTLEMENTS

PROS

1. You'll be paid quicker. One of the biggest reasons clients choose to settle a case instead of taking it to trial is they'll receive the settlement money much quicker. Trials can take a long time, one to three years isn't uncommon, depending on the case and even if you do end up winning your case there is always the chance of an appeal which will delay any money coming your way even longer or worse yet a hung jury.

2. You know what you're getting. Along with getting paid earlier, you also know the exact amount you're going to receive for your claim. If you take the claim to trial there's no way of knowing how much a jury will award you and there's always the chance of losing the case and getting nothing at all. Also there's no telling how long a trial will last or if it'll be appealed, depending on how you're paying for your lawyer, seeing a case to its end can really rack of the attorney's fees.

3. The lawsuit is over. Lawsuits aren't fun and are extremely stressful for all those involved. If you settle the case it's over. Taking a case to trial can be one of the most stressful events for a client between the formalities of the court room, frustration of turning the facts of a case into legal issues, and the risk of getting nothing at the end. All this can be spared by settling early on instead.

4. It's cheaper to settle. As noted above, trial costs can get extremely expensive. Even if your lawyer is taking the case on a percentage fee instead of an hourly rate, they'll charge you for the expenses of the trial. If your case uses experts or lengthy depositions are required costs can quickly escalate. And there's always the chance that the jury will award you less than you expected or nothing at all. Settling upfront or easier on will minimize all the fees and expenses that come with litigation.

5. Your privacy is protected. Most discussions that occur during a settlement agreement and even most of the terms of the agreement itself will be kept from the public eye. So if you value your privacy settling may be your best option. Trials are public affairs and everything that is said or entered into court during your trial will become public record. So if your case involves sensitive issues you may not want the world knowing, settlement would be a better option.

CONS

1. You're settlement is discounted. Sure if you settle you're getting your money quicker, it's guaranteed, and you avoid all the costs of litigation, but you're paying for those conveniences. For example, say you have a claim that the average lawyer thinks is worth $10,000. But the costs of taking the case to trial would run $1,800 and there's a good chance you wouldn't see any money from the trial for at least a year and inflation is running at 2 percent a year. The person you're suing may only offer you $7,000 give or take because they're discounting for the costs of the trial you'd be paying, inflation on that money ($10 today is worth more than $10 a year from now), and the removal of the risk of uncertainly that's inherent in jury trials. So while it's "discounted" it may still be a fair offer.

2. They didn't do anything wrong. Most settlements will require that you accept that the party paying you will not have to admit any wrongdoing, liability, or guilt. And will usually require silence from the complaining party about the terms of the deal and such. Depending on your values this may not fall in line with your views of justice. While most clients are happy to "take the money and run" some are offended by the idea that they're just being "paid off" to remain silent and go away.

3. Settlements are private. While this is sometimes a plus, depending on the purpose of your suit you may want the world to know what this person/company has done to you. If you chose to settle the case your "story" will most likely never see the light of day.