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If you are dealing with a legal issue, the matter can be resolved in a variety of ways.
Sometimes, you might litigate all the way until a jury reaches a verdict. Other times, you might litigate for a period of time and come to a resolution. And still, there are other times where the parties settle soon after the lawsuit is filed.
Lawyers love to settle out of court. In fact, nearly all legal cases settle before going to trial. But there are out-of-court settlement disadvantages that you should be aware of.
What are these disadvantages? That’s a great question. And we have the answers that you’re looking for.
So keep on reading and we’ll take you through the main disadvantages of out-of-court settlements that you need to know about.
An Imbalanced Power Dynamic
In some instances, the two parties just aren’t suited to work together toward a settlement. One party might feel coerced, manipulated, or intimated by the other party and feel like they are getting a bad deal in a settlement.
It is very important that you are honest with your lawyer if you feel like you are getting a bad deal. While your lawyer can advise, they can’t stop you from taking your case to trial if you feel that would bring you the best outcome.
Sometimes, people just need a more formal setting to resolve their legal issues.
A Greater Purpose
Sometimes, a lawsuit isn’t just filed in order to win money. Instead, a person might file a lawsuit for personal reasons. Someone might be trying to feel whole after a negative event.
Lawsuits can also be filed for the greater good. Good examples include constitutional law and civil rights cases. These cases can be brought to trial as a way to bring attention to a particular issue.
If a plaintiff wins, it can inspire other people to file similar lawsuits too.
This can be one of the benefits of going to court. Here, you will get to make a public showing of the case and let other people that they can win these kinds of cases too.
If you are deciding whether to settle or go to trial, you’ll need to think about why you are taking legal action in the first place.
Cannot Make Defendant Pay Compensation
When you settle a case, the other party will not need to pay compensation if they are being difficult during the negotiations. If you take them to court then the defendant is going to have to pay compensation if the jury sides with you.
The Importance of Knowing the Out-of-Court Settlement Disadvantages
Hopefully, after reading the above article, you now understand what the different out-of-court settlement disadvantages are. As we can see, settling isn’t always going to be in someone’s best interest. This is why you need to consider why you are filing a lawsuit and what you expect to get out of it.
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