Settlement

Settlements are common in a court of law and refer to the resolution between two or more disputing parties. A settlement can involve various parties and has a wide range of contributing aspects. In most instances, a settlement has been reached either before or after the court actions have commenced.

Legal Definition of a Settlement

The term settlement can vary from the situation, but in most common uses it can refer to the dismantling of litigation, payment, and closing of an account, to complete execution of an estate and the distribution of the property of interest to beneficiaries.

To resolve any disputes between involved parties, and before a settlement can be agreed upon – fair and transparent negotiations will be conducted.

Settlement Versus Lawsuit

  • Settlement: In a court of law, a settlement can be considered in favor of both the plaintiff and the defendant. A lot of court cases will negotiate for a settlement agreement, as it requires fewer resources and time to resolve. This is dependent on each case, and settlements can vary across the board.
  • Lawsuit: If an individual has sustained injury and no settlement can be agreed upon, or the defendant refuses to accept the desired settlement – plaintiffs can pursue a lawsuit. This form of legal action will require more physical time of parties involved, and extend the negotiation period.

Once a plaintiff has entered a lawsuit with additional parties, the case may then be considered to go to trial where an additional jury will oversee the negotiations by the attorney. Only once a lawsuit has ended, both the plaintiff and defendant will be informed of the resolution thereof.

The Outcomes of a Settlement

The outcomes of a settlement will solely depend on the factors involved in each case. Certain evidence, facts, documents, and testimonials can be used to strengthen a settlement case.

Read more: How pre- and post-settlement financing works.

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