In the American justice system, litigants in civil cases always have an option of whether to settle their cases in court or out of court. In many occasions, regardless of the severity of the case, as long as parties can reach a mutual agreement, they don’t have to go to court to settle an issue before a judge and/or jury, they can reach an out of court settlement which will then be filled in the court before a judge, and such a settlement becomes final.
Before litigants can get in a long drawn out court battle, it’s always a good idea to consult their lawyers on whether it would be more advantageous to settle out of court.
We are going to look at the 4 advantages of settling your case out of court.
An out of court settlement is less costly
Going through a drawn out court battle will definitely be expensive for all the parties involved because court cases cost money. You have to pay your lawyers as well as other related legal and court fees for the duration of the trial, not to mention the punitive damages that the losing party may end up being slapped with. Reaching for an out of court settlement will save both parties these extra costs.
An out of court settlement will guarantee a mutual outcome
Reaching an out of court settlement will enable both parties agree on a win-win outcome for both sides. This is because they will be able to negotiate and agree on a solution that benefits both the wronged party and the liable party. If this process is left to a judge and/or jury, it’s often unpredictable because they are likely to come up with a ruling that will not be satisfactory to both parties.
An out of court settlement is concluded with much quicker
One of the key things when it comes to reaching an out of court settlement is that the parties involved will often conduct the negotiations quickly and agree provided there are not too many contentious issues. If this disagreement is taken to court, it may end up into a long drawn out court battle for months or even years without a resolution.
An out of court settlements will allow for privacy
Probably the biggest benefit of an out of court settlement is that it remains a private matter between the parties involved in the dispute. However, if the same disagreement is settled in open court, it becomes a matter open to the public therefore there’s no privacy.
Before parties engage in a long and expensive court battle, it’s a good idea for them to first try settling things out court as it has proven to have more advantages than the court process.