In as much as many people will desire to have their day in court because they have a strong case and are confident that their legal team will tear the opposition team apart, an out of court settlement may actually be a better option for you. When seeking from advice from your lawyer as to whether to take a case to trial or reach an out of court settlement, it’s always a good idea for you to have an idea of the pros and cons of both so that as your lawyer advises you, you are in a position to make a decision from a point of knowledge.
In this article, we are going to look at 4 benefits of out of court settlements.
1 Such settlements are less costly
It’s no secret that court cases are expensive. It becomes even worse when a case gets drawn out because of appeals or even counter suits. At the end of the day, both parties are looking at a significant financial drain and it can even get worse for the losing party if they are ordered to pay for the legal costs of their opponent. Taking the option of an out of court settlement will therefore save both parties of such costs.
2 Settlements always guarantee an outcome
Most out of court settlements are characterized by both parties reaching an amicable resolution in which both parties are satisfied. The parties will always strive to reach an agreement that is fair to both of them. The same can’t be said of a trial in open court because you can never predict what the judge or jury will decide. Both parties may end up with a ruling that doesn’t favor them.
3 Settlements are much quicker
Parties negotiating an out of court settlement will seldom drag the process because the negotiations will be dispensed with quickly so that the parties can move on to other things. The same can’t be said about a trial in open court because it can end up dragging for months or even years.
4 Settlements allow for privacy
The good thing about out of court settlements is that they can be done privately and even include non-disclosure agreements therefore barring any of the parties involved from publicly revealing details about the settlement. The same does not apply to a trial in open court because everything will be done in the public eye.
You should always be cognizant of the fact that out of court settlements are binding therefore before you agree to one, always ensure that it has been done after receiving sound legal advice or even in the presence of your legal counsel.