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.