Settlement vs. Trial

Settlement vs. Trial in Civil Cases 

Civil lawsuits do not always have to go to trial; instead, the parties might agree to settle the lawsuit outside of court. Deciding whether to accept a settlement or take the case to trial is one of the most important decisions a plaintiff might make. Although it is more common for civil lawsuits to be settled outside of court, this decision will depend on the individual circumstances surrounding the lawsuit. Knowing the advantages and disadvantages of each option can help civil plaintiffs make the right choice. 

Settlement 

A settlement is an agreement which ends a legal dispute and results in voluntary dismissal of any related litigation. In civil cases, this typically involves a defendant paying an agreed-upon sum to an injured party. A legal settlement can occur at any stage of a lawsuit, even before a claim is filed or during an ongoing trial. 

There are many advantages to opting for settlement: 

• Faster resolution: Settlements are typically much faster than trials. A settlement may provide compensation to the plaintiff within months of reaching an agreement, while trials are generally time-consuming and often take a year or longer to reach a resolution. 
• Lower costs: Settlement allows parties to avoid the significant expenses of a trial, including court fees, expert witnesses, and
• additional attorneys’ fees. 
• Predictability: Settlement gives both parties more control over the outcome. The parties will negotiate terms and agree on a desired outcome, and the injured party is guaranteed at least some amount of compensation.
• Privacy: Settlement details can remain confidential, unlike trial proceedings, which are typically public.
• Stress reduction: Settlement can allow injured parties to avoid the stress and emotional strain of recounting traumatic events in court.

Trial 

At trial, a judge or jury will hear evidence and testimony from both sides and will make a legally binding decision about liability and compensation. Although less common than settlement, there are certain advantages to taking a case to trial: 

• Potential for higher compensation: Parties typically compromise on compensation during settlement negotiations, meaning a plaintiff may have been able to receive a higher amount. At trial, a plaintiff will have the opportunity to seek full compensation without compromise.
• Accountability: Beyond compensation, an injured party may also wish to hold a negligent party publicly accountable, rather than allow the injury to be privately remedied.
• Bad faith or complex circumstances: Parties to a dispute may disagree about liability or may be unable to negotiate in good faith. A trial allows the parties to place the burden of the decision on the jury instead of negotiating an outcome themselves.
• Precedent: Trials can sometimes lay the groundwork for legal precedents that willbenefitindividuals facing similar situations in the future. 

Choosing to settle or go to trial will affect how long your case lasts, how much money you ultimately recover, how much stress you endure, and how much control you have over your compensation. An experienced attorney can help evaluate the potential advantages or disadvantages of either option and recommend the best course of action for the particular circumstances. 

If you have any questions or need help protecting navigating civil settlement or trial, please contact McNeelyLaw LLP by calling (317) 825-5110. 

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.