Settlement litigation is the resolution of contentious cases outside of court, often involving personal injury or breach of contract. Plaintiffs seek compensation for damages, while defendants may offer a settlement to limit risk and control the amount paid. Acceptance of a settlement depends on the offer and the plaintiff’s choice.
Settlement litigation refers to the fact that most contentious cases are resolved out of court. A contentious case is a case where one party sues another party privately in a civil suit in order to collect monetary damages. This is distinct from a prosecution, and the purpose of civil litigation is for an injured plaintiff to receive compensation for various torts or breaches of contract. Most often, insurance companies or corporations are the named defendants in litigation, and settlement litigation is a means of limiting risk.
Litigation can take place in many situations, but two of the most common examples stem from personal injury lawsuits and breach of contract cases. An example of a personal injury lawsuit might be a lawsuit in which a plaintiff claims he was harmed by a defective drug manufactured by the defendant, or a lawsuit in which the plaintiff claims he was injured in an automobile accident caused by the defendant. A case of breach of contract, on the other hand, occurs when the plaintiff claims that the defendant did not do what he promised to do in a formal written contract.
In these cases, and in other forms of litigation, the plaintiff is looking for money. In contractual cases, he claims money for damages suffered as a result of breach of promise. In personal injury cases, he seeks money for medical expenses, loss of income, pain and suffering, and emotional damage resulting from the injury.
The defendant in these cases may wish to explore the option of a settlement dispute. Settlement means that instead of taking the case up to the jury and allowing the jury to give the plaintiff the amount of money they deem appropriate, the defendant offers a specific amount of money. If the plaintiff accepts that amount of money offered, then the plaintiff waives all further rights to sue.
Settlement litigation may be a good option for the defendant if they believe they could lose the case, as they may have a greater degree of control over how much money is given to the plaintiff. Settlement litigation can also be a good option for a plaintiff, as the plaintiff receives a guaranteed payment without first having to prove the defendant’s guilt to a jury. Whether the settlement will be a viable alternative to litigation depends on what the defendant offers, if anything, and whether the plaintiff chooses to accept that offer.
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