{"id":369048,"date":"2016-04-04T10:47:07","date_gmt":"2016-04-04T15:47:07","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/litigation\/legal-system\/what-does-it-mean-to-settle-a-case.html"},"modified":"2024-05-14T15:10:08","modified_gmt":"2024-05-14T20:10:08","slug":"what-does-it-mean-to-settle-a-case","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/litigation\/legal-system\/what-does-it-mean-to-settle-a-case.html","title":{"rendered":"What Does it Mean to Settle a Case?"},"content":{"rendered":"\n
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What Does it Mean to Settle a Case?<\/h1>\n
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\n By Lyle Therese A. Hilotin-Lee, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Settling a case means ending a dispute before the end of a trial. Although popular media often makes it seem like significant cases get resolved quickly, a case can meander through the court system for years.<\/p>\r\n

This article examines an alternative to traditional courtroom litigation: settling cases out of court. This approach is often less costly and time-consuming than the usual litigation proceedings.<\/p>\r\n

Understanding Out-of-Court Settlement<\/h2>\r\n

An out-of-court settlement happens when the parties to a case resolve the legal issues without going to trial. It is when the parties negotiate a fair settlement agreement that is acceptable to both parties. There are various means to settle a dispute out of court. These processes are collectively called Alternative Dispute Resolution (ADR)<\/a>.<\/p>\r\n

The most common types of ADR are arbitration and mediation<\/a>. In an arbitration, the resolution process resembles litigation in some ways. But a neutral third party hears the case instead of a judge or jury. The parties pick the neutral third party who acts as the sole arbitrator.<\/p>\r\n

Depending on the legal case, this agreement may include a settlement offer such as financial compensation, punitive damages<\/a>, or other terms. For instance, parties may agree on non-monetary remedies such as contract modification or an apology.<\/p>\r\n

An important disclaimer is that not all legal issues are suitable for ADR or settlement negotiation. For instance, some personal injury cases are too complicated for an out-of-court settlement.<\/p>\r\n

Why Settle a Case?<\/h2>\r\n

A trial is a long, expensive process. Most people do not file a suit simply for the thrill of the courtroom experience. Instead, people file suit because they feel someone has wronged them and can’t find a suitable solution. Settling a case may offer a way to avoid the expense of trial while still getting some compensation for the wrong committed against them. It can save both parties time and money compared with formal litigation.<\/p>\r\n

Although settlement can be a great alternative to save time and avoid litigation costs, there are some things you should consider when deciding whether settlement is the best option for you.<\/p>\r\n

Advantages of Settling Out of Court<\/h3>\r\n

The following are some of the advantages<\/a> of settling out of court:<\/p>\r\n