Is There Pressure to Settle Cases Out of Court?

When litigation arises in business, parties turn to the courts to resolve disputes. While theoretically this should involve a judge or a jury making decisions on the issues, this rarely happens. Instead, the vast majority of lawsuits settle outside of court. The mere filing of the suit is sufficient to get parties to the bargaining table where they can come to an agreement regarding how differences should be resolved.

The court system is, in many ways, designed to impose pressure to settle cases out of court. Settling can be much less costly for all parties and allows for disputes to be kept private. Judges can encourage settlement talks to occur, and in some cases may even mandate pretrial mediation to facilitate settlement. When business litigation arises, company stakeholders may also impose pressure to settle cases outside of court.

While this pressure to settle cases out of court exists, this does not mean that it always makes sense to give into it. A settlement agreement cannot be reversed, so it must be carefully reviewed to determine if the outcome is a reasonable and appropriate one given the nature of the dispute. A Las Vegas business litigation lawyer can provide advice and information on whether a settlement offer is a reasonable one. Attorneys at Pintar Albiston LLP can also represent your business interests to try to negotiate a more favorable settlement or may litigate in court on your company’s behalf.

Is There Pressure to Settle Cases Outside of Court?

There are myriad reasons why there is frequently pressure to settle cases outside of court. Pressure to settle can come from judges who have overloaded dockets and who do not want public resources expended on an unnecessary trial.  Pressure to settle can come from shareholders and company executives who know that mounting a full court case can be extremely costly because of court expenses, legal fees, expert witness fees, and a host of other expenditures.   Keeping news of lawsuits out of the headlights, controlling risk, and keeping company affairs private are also reasons to settle.

Pressure to settle cases outside of court can be a good thing when it forces compromise.  Companies and individuals know their goals when going into litigation and can often come up with a solution to a disagreement that is better for all parties.  Judges and juries, of course, have less specific industry knowledge when business disputes arise and do not have a full understanding of the interests of each business, so an outcome in court may leave all parties worse off. Third party mediators can help to facilitate discussion to maximize the chances of a desirable settlement being reached.

In some cases, however, pressure to settle can be a bad thing. For example, a more powerful party to the disagreement may try to coerce a settlement deal that is not reasonable or fair.  A signed settlement agreement comes with a liability release, so a damaged party has no further legal recourse.

Before settling any case, it is advisable to talk to a lawyer. The Las Vegas business lawyers at Pintar Albiston LLP have negotiation experience to help with settlement talks. If settling is not right for your interests, our experienced attorneys can also litigate your case. Call today to learn more.