Legal Blogs

Is There Pressure to Settle Cases Outside of Court?

If your business becomes involved in a dispute, you will need to decide whether to resolve it through litigation, alternative dispute resolution or the negotiation of a settlement. Settling cases is often beneficial for the business. However, you need to make an informed choice about whether settlement is the right option since the decision to settle becomes final once you have signed a settlement agreement. Is There Pressure to Settle Cases Outside of Court?

In some cases, there may be pressure to settle cases outside of court. This pressure can come from business executives, shareholders or a board of directors who want to avoid the costs and uncertainty of litigation. Your attorney should not pressure you to settle, but should give you advice about all of your options and help you to choose the approach that is right for your company.

It is important to be represented by an experienced negotiator as well as an experienced litigator so that your attorney can provide you with top-quality representation whether your claim settles or is decided by a judge or jury. An Irvine, CA business lawyer at Brown & Charbonneau, LLP can represent you in settlement negotiations and assist you in taking your claim to court if you need to prove your case in trial.

Is There Pressure to Settle Cases Outside of Court?

Sometimes, there will be pressure to settle cases outside of court from those in charge of a company involved in a business dispute. Settlement may be preferred because:

  • It can keep a dispute from becoming public. When a lawsuit is filed and a case proceeds to court, the disagreement may become public and the evidence presented will become court record. Companies may not want the bad publicity that could be associated with a lawsuit and may want to negotiate a settlement that includes a gag order guaranteeing privacy.
  • It can result in lower costs. Litigating a dispute can be very expensive as you may need to pay court costs and fees; legal expenses; and the costs of expert witnesses and investigators. Sometimes, it is cheaper to just settle a case rather than go to trial.
  • It can result in a better outcome. If you are able to negotiate a settlement, the agreement may provide a better result for all parties involved. A judge or a jury may not understand the industry or the nuances of your dispute and the decision that is made in a court trial could leave everyone worse of. It can be preferable to try to compromise and agree, especially if you want to try to preserve the business relationship for the future.
  • It provides more certainty. When you settle, you know exactly what you will end up receiving or what you will end up paying out to resolve the legal dispute. If your case goes to court, then you are at the mercy of what the judge or the jury decides. You could end up getting nothing or having to pay much more than you had expected.

These are all valid reasons why there is often pressure to settle cases outside of court. It is important to understand your legal options and to ensure that you make informed choices about whether settling is right for you. Contact an Irvine, CA business lawyer at Brown & Charbonneau, LLP for help deciding how to resolve your case.