Did you know that over a million lawsuits are filed every year? Often when we think of court cases in popular culture, we imagine a judge or jury handing down a verdict. However, the reality is that the majority of lawsuits are settled out of court. Whether you’re the defendant or the plaintiff, you will likely reach a point in the trial where reaching a settlement is your best option.
But how do you know for sure when to settle? If you want to know when to settle out of court, then you’re in the right place. In this article, we’ll explore some of the main reasons why parties decide to settle. We’ll also take a look at some of the advantages of settlements. Let’s get started!
When Should You Settle Out of Court?
Deciding to settle out of court is never an easy decision. This is especially true if you’re pursuing your lawsuit for a sense of justice. However, the sad truth is that justice can be expensive.
Not just financially, but also emotionally and mentally. As such, it’s important to recognize the signs that it’s time to give up the struggle. In this section, we’ve organized five of the most common reasons why people decide to settle out of court.
1. The Trial Is Taking Time Away From Your Work
Even if you have an extensive law team, lawsuits will eat up a valuable amount of your personal and professional time. Court appearances require frequent days off that not many jobs can accommodate. If you notice your work-life suffering from your lawsuit, then you might want to consider settling. Especially if you rely on the income to fund your court expenses.
2. The Trial Is Too Expensive
Trials are expensive. Attorney costs, pretrial motions, discovery processes, and depositions all add up to a lot of money. What’s worse these costs can extend onward for months or even years before getting resolved.
If you’ve run out of funds, then you should consider settling out of court. Unfortunately, sometimes you don’t even have enough money to make it to the settlement phase. If you find yourself in this position, then consider the advantages of a lawsuit loan.
3. Jury Trials vs Judge Trials
Jury trials tend to be more unpredictable than judge trials. Juries tend to be more sympathetic with defendants than judges are. As such, if you’re the plaintiff and you’re facing a jury trial, then you might want to consider settling.
4. The Outcome Is Already Certain
No one wants to commit time and money to something if they aren’t sure they’ll win it. The same goes for lawsuits. If you and your lawyer can’t predict the outcome of the trial, then you should probably consider settling.
The alternative is to spend everything you’ve got only on a bet that you might not win. If you lose, then you can appeal the verdict. But most of the time this only prolongs the inevitable.
5. You’re Too Stressed Out
Lawsuits are undoubtedly stressful. In addition to being time-consuming, they can eat into your finances. And that’s not even counting the stress of court appearances, testimonies, and lawyer meetings.
For many people, the stress of a prolonged court case can cause a serious decline in mental and physical health. If you start to experience this, then we recommend settling out of court. It’s usually not worth it to risk your health for the name of justice.
Advantages of Settling Out of Court
Why is it that 80% to 92% of cases settle out of court? It’s because most of the time it’s advantageous for both parties. First, there are the costs to consider. Plaintiffs must sacrifice a large portion of their earnings with their attornies. Defendants, on the other hand, typically have to pay for legal help on an hourly basis.
And that’s not even including the expensive litigation costs. As such, the sooner you decide to settle out of court, the more money you will likely save. It’s not only money you’ll save either. The litigation process can take years, and in some cases, even decades. On top of that, there isn’t even a guarantee that you’ll win the case.
At the end of the day, it could all be a huge waste. As such, settling out of court will save you years of stress. It will also give you an exact amount of money, so there’s no wondering about how much you stand to make. There’s also the public factor to consider. Any details from the lawsuit are on the public record.
In some cases, a judge can have the records sealed, but this doesn’t happen often. Considering how ugly some trials can get, you likely don’t want witnesses and testimonies about your bad character available for all to see. That’s where another big advantage of settling out of court comes into play: you get to determine what is kept private and what becomes public.
Need Help With Your Pre-Settlement Funding? Contact Legal-Bay Lawsuit Funding
We hope this article helped you decide whether or not you should settle out of court. Deciding to go with a settlement is never an easy decision. Often, individuals run out of court cost money before they can even reach the settlement procedures. So what do you do if you’re in this boat? Easy: contact Legal-Bay Lawsuit Funding.
We have over twenty years of experience in lawsuit funding experience. Over this period we’ve worked on funding for nearly every type of lawsuit. We work with your lawyers to ensure that the funding contract is fair for all parties. Best of all, each case evaluation is free. So, if you’re ready to be approved for pre-settlement funding, then get in touch with us today.