Resolution Before Trial: Settlement / Alternative Dispute Resolution
Created by FindLaw's team of legal writers and editors | Last reviewed June 20, 2016
This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw’s team of legal writers and attorneys and in accordance with our editorial standards.
The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors. 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.
The majority of legal claims filed in civil court do not reach the trial stage-- most are resolved earlier through a negotiated settlement among the parties. An informal settlement can even take place before any lawsuit is filed. Through settlement, the plaintiff in a civil case agrees to give up the right to pursue any further legal action in connection with his or her case, in exchange for the payment of an agreed-upon sum of money from the defendant (or the defendant's insurer). In rare cases, instead of paying money the defendant will agree to perform (or cease performing) a certain action.
If you are considering settling a legal claim in your civil case, or if you have received a settlement offer, you should talk to your attorney and receive his or her thorough assessment of the case and the prospects for settlement. Consider the following points:
- Amount he or she thinks the case is worth in a range of dollar amounts.
- Verdicts and settlements in similar cases.
- Chances of winning at trial.
- Unfavorable publicity for either side (civil court trials are open to the public and media scrutiny).
- Amount of personal information that could be revealed at trial or through further discovery.
- Possible disclosure of business information or trade secrets.
- When the case is likely to be called for trial.
- Practical difficulties in trying the case.
- Weaknesses in your evidence.
- Weaknesses in your opponent's evidence.
- The amount of the defendant's insurance coverage.
- The defendant's own monetary resources.
- The defendant's lawyer's negotiation tactics (your lawyer may have negotiated with the lawyer before, or has talked to other lawyers to get an idea of what to expect).
- The extent to which your opponent is likely to play "hardball."
- If you are the plaintiff, ask how much of the settlement proceeds will be applied to your lawyer's fee and your expenses.
- If you are the plaintiff, ask how the settlement payments will affect your federal and state income taxes.
- Talk about what you're willing to concede in order to get the case settled.
- Discuss the minimum amount you will accept.
- Consider the possibility of a partial settlement, that is, settling the easy issues first while you continue to negotiate the more contentious issues.
- If you are the plaintiff, consider accepting a remedy other than money.
Next Steps
Contact a qualified attorney to help you navigate the challenges presented by litigation.