Why do companies settle out of court?

Many companies would prefer to stay out of court proceedings because of the potential legal costs, uncertainty and potential harm to their brand that could result. Companies often reach a court settlement to avoid lengthy litigation, lengthy attorney fees, or resolve counterclaims. Resolving a lawsuit can also help prevent your company from receiving negative publicity or attention, which can sometimes cause more harm than the lawsuit itself. Out-of-court settlements are a great way to settle a case and move on.

They can save time and money and provide results that would be impossible in a trial. However, they're not for every dispute, and it's important to weigh the strength of a case against the possibility of reaching a settlement. When parties want to reach an agreement, there are a variety of options to choose from, each with its strengths and weaknesses. Knowing how and why to resolve a case is important and can save time and money in the long run.

While it may seem more appropriate to settle a case before trial, unfortunately, personal injury cases seem to be resolved less and less before litigation.