Why do lawyers have a preference to settle out of court instead of going to court?

Is it more profitable to settle out of court?


I remember the day I settled my case. I was at the hearing of the man who sued me. (A lawyer I had never met dragged me into a $10,000,000 case against his former friend who was my former employer. The case was bogus, so I countersued). The case caused me to lose my apartment and did tremendous damage to my professional life. The courts were pressuring me to settle. I didn’t want to. While my lawyer was negotiating I got a phone call from my landlord. I found out my room mate hadn’t paid rent in 5 months. With that new information I settled my case immediately. There was no way I could handle staying in litigation AND finding a new place to live. No way. If it had not been for that phone call, I was ready to take this case all the way to trial.

I basically settled for my legal fees and therapy bills from having to deal with the case, minus what I raised online. Yes, I settled for MUCH less than what I deserved. My lawyer had some great words of wisdom.


1. When litigation ends, everyone is a winner.
2. Everyone should walk away from a settlement a little pissed off.
While I have no problem publicly stating I deserved much more than what I got, there was a huge relief just being out of the court system. My lawyer and others were rightfully concerned that fighting the case was taking a toll on my well-being and mental health. I should mention that I also settled under the terms of a public apology. The man who sued me verbally agreed to it, but never delivered. He apologized to me in private, but I wanted it a public statement in writing.


Litigation is purgatory and trials can go on for years. One side is always going to be at risk for losing big. That includes the lawyer if they are on contingency. Sometimes both sides can lose as the award may get completely eaten up by legal fees. It also costs tax payer money and the court systems are way too clogged as it is.


So to answer your question, while it could end up being less profitable from the winner’s standpoint…. the financial risk is much lower if parties settle.


Source: https://www.quora.com/Why-do-lawyers-have-a-preference-to-settle-out-of-court-instead-of-going-to-court

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