Another Reason to Settle
Plaintiffs that turn down a settlement tend to win less at trial than if they’d settled. This, is the conclusion of a recent study according to a post (“Go for That Settlement Study Says”) by Robert J. Ambroji on Legal Blog Watch, citing a story in the New York Times.
We tend to believe the conclusions despite our skepticism regarding most conclusions based on a single study. Why, do we give this particular study credibility? We concur with the LBW post:
Because a settlement is a product of mutual agreement. Both sides walk away from the table having made a bargain they both agree they can live with. By contrast, litigation is a crap shoot. Let someone else decide your fate, and more often than not you'll be unhappy with the outcome -- even if you "prevail."
Thus, even if the study statistically is wrong, there are other good reasons to reach a settlement. And, if the study, in fact, reflects the statistical reality, there is a substantial risk of ending up with less by going to trial.
The Times article is slanted so as to blame bad advice by lawyers for the study results. In my experience, the problem is much more often an emotional attachment to “the fight” by the clients. After all, even the Times notes that 80 to 92 percent of cases actually settle. Within the small minority of cases that go to trial, there are additional plaintiffs who should have settled.
As the LBW post says: Go for it.
