Settling A Claim?
Settling
By: Stephen P. Horner, Esq.
Question:
What are the various “pros and cons” involved in deciding to settle an employment lawsuit or not?
[Art M., Darien)
Answer:
Well, Art, this is a good question. I frequently refer to the phrase “high stakes poker” when my clients are considering whether to settle a case or not. I characterize it in that way because frequently there are substantial sums of money at stake and one runs a substantial risk of winning or losing a lot of money [depending on whether you are the plaintiff or the defendant] if you allow the case to go to trial rather than settling. Before we discuss the “pros and cons”, let me briefly mention the most frequent times when one’s claim is settled:
1. Before a lawsuit is commenced [most claims are usually not settled at this time unless the plaintiff is willing to take a rather nominal settlement amount].
2. Shortly after litigation is commenced [some cases are settled at this time prior to either party spending a great deal of time and/or money which translates out to mean attorney’s fees on the case].
3. After the plaintiff’s deposition [some cases are settled at this time since the defendant is now more fully aware of how good or how bad the plaintiff’s case really is].
4. “On the Court House steps” … or close to the steps [unfortunantly, all too many cases do come down to the wire before the parties seriously discuss and reach a settlement of the lawsuit].
Pros For Settling
1. Eliminates any further legal expense in handling the case.
2. “A bird in the hand is worth two in the bush”—-this perspective applies to both the plaintiff and the defendant because the plaintiff frequently prefers some monetary recovery rather than running the risk of no monetary recovery. From the employer’s viewpoint a known settlement amount is frequently better than a unknown jury verdict which could far exceed the settlement costs.
3. Saves the client time and effort. This again is applicable to both plaintiffs and defendants because continued litigation certainly involves a great deal of effort to prepare for a trial.
4. Enables the plaintiff to put his/her claim against the Company “behind him” and to then focus on the rest of his life.
Cons For Settling
1. Some plaintiffs are anxious to “have their day in court” so that they can vent their feelings about the way that they were treated. Such opportunity is lost if the case settles without a trial.
2. Proceeding to a trial without settling the case means that you might “hit the lottery” and win a large award from the jury. Settling means that you won’t be able to see if your “lottery ticket” was a winner or not.
It should be noted that the vast majority of cases filed in court are resolved without a trial. Such cases are either settled or dismissed by the court for legal reasons.
As a practical matter, settlements are compromises that are accepted by both parties. “Bearable unhappiness” is a term that is frequently used to describe how parties feel when their claims are settled for less than they feel it is worth…which is usually the case.
Contact Steve Horner at shorner@horner-law.com
