Settlement vs. Verdict

A settlement and a verdict are two different ways to end a legal dispute. A settlement happens when both sides agree on a solution. This can occur before a case is filed in court or anytime during the process of resolving a court case. A verdict is the decision a judge or jury makes after hearing evidence and arguments at trial. Understanding the difference between them can help people choose the best way to resolve their case.

What’s the difference between a settlement and a verdict?

A settlement agreement ends a legal case without going to trial. The parties involved decide on the outcome themselves, often with help from their lawyers. Sometimes, they ask a neutral, outside party (called a mediator) to help them resolve their issues. They prepare an agreement that includes terms that are acceptable to everyone.

A verdict is a decision made by a judge or jury after the parties present their evidence and arguments at trial. The verdict includes a summary of each party's legal claims and how they should be resolved. A favorable verdict for a plaintiff may order a defendant to pay money, take specific actions or stop doing something. A verdict favorable to a defendant may simply dismiss the case.

Pros and cons of settlements vs. verdicts

Both settlements and verdicts can provide an outcome the plaintiff wants. How do you know whether it’s worth going to trial to get a verdict vs. taking a settlement from the defendant?

Settlement

Settling a case allows the parties to avoid going to trial and risking an unfavorable verdict. Its other advantages include:

• Faster resolution: Litigation can take many months or years and be extremely expensive. Settlement is a cheaper, easier way to resolve disputes.
• Available remedies: A settlement agreement can include things that a verdict can't address, such as an apology or agreement to give someone a good reference.
• Confidentiality: Many settlements prevent the parties from discussing their terms or payments. This can help protect a company from additional lawsuits or damage to its reputation.

However, settling a case can also have disadvantages. These include:

• Lower payouts for plaintiffs: A plaintiff may win a much higher amount in a verdict than most defendants will offer in a settlement.
• Potential for unjust results: A defendant may settle a case even if they believe they would win, because of the cost, hassle and negative publicity of going to trial. A settlement may not include non-monetary factors such as stopping the production of a harmful product.
• Secrecy: Confidentiality agreements can prevent a plaintiff from protecting potential victims. This may allow companies or organizations to continue harming others.

Verdict

At the end of the trial, a judge or jury makes a legally binding decision, known as a verdict. It explains the outcome of a trial and may require one party to pay money, take an action or stop doing something.

Some advantages of going to trial to get a verdict include:

• Potentially more fair: A jury may be more willing to award an injured plaintiff more money than a defendant offers to settle the case. If a defendant denies responsibility or is uncooperative, a trial may be the best choice.
• Public interest: A verdict against a company or organization can attract publicity. This may help improve their future behavior and protect the public from similar harm.
• Personal justice: A trial allows the parties to "have their day in court," defend their reputations and fully explain their grievances.

Taking a case to trial for a verdict can also have some disadvantages. These include:

• Unpredictable: Juries are made up of ordinary people. Although the court instructs them to follow the law, they may not understand it. They may make decisions based on their emotions or be unable to make a decision at all.
• Cost and delay: Preparing for and trying a case can be very expensive and time-consuming. It can take many months or years to reach a verdict.
• Publicity: Most trials are public proceedings. They may expose personal matters to public opinion, which can be embarrassing and disruptive.

Settlement or jury verdict: Which is right for you?

Choosing between a settlement and a verdict depends on your goals, case and situation.

If your case is strong and you're able to endure the time and cost of it, a trial may be a better option. A verdict is usually better if you want to make a public point, like changing a policy or helping others stay safe. A trial can help bring attention to an issue through the media—even if you lose, taking your case to a jury can help bring about social change or improve public safety.

However, trials take more time and can cost a lot more money than initially assumed. You also risk losing if the judge or jury decides against you.

A settlement gives you more control over the outcome of your case. It can be faster, less stressful and more private than a trial. If you’re worried about legal fees or don't want to wait a long time for a decision, settling might make more sense.

In the end, your choice depends on how strong your case is, how quickly you want to move on and what your priorities are in pursuing the case. A lawyer can help you weigh your options and make the right decision.