The Pros and Cons of Settlement vs.Trial

Our team at Shannon Law Group, P.C. is working hard to prepare for upcoming trials. Preparation for trial begins the day a client hires us to represent them.  From day one, our job as trial lawyers is to compile evidence to support a jury verdict in favor of our clients.

Between that day and the trial date, a large amount of investigation occurs.  The parties depose liability witnesses and damage witnesses, as well as experts for both sides. By doing so, each side evaluates the strengths and weaknesses of their cases.

At our firm, we try civil cases on the behalf of people who seek compensation for damages they sustained as a result of the negligence of a corporation or individual.

However, trials are not the only way to resolve a case and receive compensation for personal injury. The plaintiff may also accept a settlement offered by the insurance company before trial. If an offer is accepted, the plaintiff forgoes their right to a trial by jury, and the case is subsequently closed.

If you have a personal injury lawsuit, you may be wondering, “When is it the best time to settle? Or should I go to trial?”

In this article, we discuss the pros and cons of both settlements and trials. There is no right answer, and every case is different. If you are currently represented by an attorney, it’s best if you speak with them about your options.

Why do most civil cases settle before they go to trial?

Before we get started, you should know that most personal injury cases will settle before they reach trial. Why is that?

Trials are expensive and come with risks. Once it begins, you have no control over the jury’s decisions. As a result, defendants often try to mitigate this risk by offering to settle with plaintiffs before trial.

A civil lawsuit can settle at any moment throughout the case. As trial lawyers who represent people with catastrophic injuries, we’ve found that defendants and insurance companies are often don’t make a fair settlement offer until trial approaches.

What is a trial?

In Illinois, civil trials occur every day. It’s a formal hearing of evidence before a judge and jury in order to determine fault in civil cases. For personal injury lawsuits, the jury will ultimately decide how much compensation the plaintiff should be awarded for the damages they sustained.

In the last few years, we have had a number of trials where the jury award exceeded policy limits of the defendants’ insurance policy.  That is the climate of litigation.  Insurance companies will force folks to try legitimate cases before juries, even though it means exposing their insured party to excess exposure.  In those cases, the insurance company should have settled the case before trial.

What are the advantages and disadvantages of trial?

Here are some benefits of a jury trial to consider:

• You get your day in court. The experience of testifying before a judge and jury about what happened to you and how it impacted your life may be cathartic.
• A jury may award a larger sum of compensation compared to what the defendants may offer to settle your personal injury lawsuit. In a trial, a jury can award non-economic damages for pain and suffering, loss of a normal life, and disfigurement. Non-economic damages are often the largest parts of jury awards.
• Trials are public and recorded. If the defendants are found negligent, they will be held accountable for their actions.

On the other hand, the cons of going to trial include:

• Trials are risky. If the jury finds you over 50% at fault, you may walk away with nothing. You never know how a jury will decide your case.
• Trials can be time-consuming and expensive.

What is a settlement?

Simply put, a settlement occurs when both the defendant and plaintiff resolve the case before it goes to trial. In personal injury lawsuits, this is often achieved by monetary settlement.

What are the advantages and disadvantages of out-of-court settlement? 

Most cases will settle because both sides understand the risk of placing the decision of who wins and who loses in the hands of a jury.  The plaintiff understands that he or she may lose and the insurance company understands that the jury may award damages to the plaintiff far in excess of what they want to offer.

Here are some advantages to settling out-of-court:

• You know how much compensation you will be receiving.
• Your lawsuit may be resolved sooner than if it proceeded to trial (although this is not always the case).
• Your case costs may be reduced by not proceeding to trial.

While settlement may seem like the safer option, there are disadvantages to consider:

• The monetary awards may be smaller than what a jury would award you.
• You may sign a confidentiality agreement, which will bar you from discussing your case with others.
• The defendant will not be found negligent.

Although attorneys make recommendations, the decision to settle or go to trial ultimately rests with the client.