I tell the kids, ‘somebody’s gotta win, somebody’s gotta lose.
Just don’t fight about it. Try to get better.’
– Yogi Berra, Hall of Fame Baseball Player
Some win. Some lose. That’s typically how it works, isn’t it? Whether it is a business deal, a war, a game, or just life in general, there must be a winner and a loser, right? Or must there be? No one wants to be on the losing side of any effort, and in some realms, this can be altogether avoided. A win-win situation is possible, of course, depending on how the game is played.
In the legal world, one way to create a win-win situation is settling a suit outside of court. Generally, here’s how it works. One party offers a payment or award of some kind to the other party. It is usually less than the amount asked for in the lawsuit, but obviously more than they would get if they were to lose. There are many reasons to settle out of court, and it can often be a benefit to all parties involved. Here are a few reasons.
Money
Trials can be expensive, and the longer the trial goes and the more time put into depositions, research, travel, and preparation, the more costly it can be. When you settle, even though it may be for less than you were asking, once you factor in the cost of the trial it is often worth it for everyone.