Settlement Value
The term “settlement value” refers to the estimated worth or amount of money a litigant or legal representative is willing to accept in exchange for ending a dispute or lawsuit. This is usually a negotiated or agreed-upon amount, as opposed to the final judgement or award resulting from adjudication or arbitration.
In the legal world, settlement figures exist everywhere. When a dispute or lawsuit arises over the ownership of property or the interpretation of a contract, a settlement may be reached between the two parties in order to avoid further litigation and the associated costs. Many times the process of reaching a settlement involves the assistance of a third party mediator or arbitrator. These representatives may assist in the negotiation process with each side by offering suggestions for a solution, such as an acceptable range for a settlement figure.
When evaluating a settlement value, there are several areas that must be considered. The first is the legal precedents that exist in the case. An individual’s lawyer may analyze past court decisions and use them as a guide in producing a range for a settlement figure. This provides both parties with an idea as to the potential outcome should the dispute be pursued in court.
Second, the parties must consider the financial cost associated with pursuing a case in court. Here, an understanding of the costs associated with preparing and filing the necessary documents, gathering evidence, involving expert witnesses, and the potential of paying attorney’s fees and court costs must all be taken into account when formulating an offer of settlement.
Third, the parties must consider the time that would be spent arguing the dispute in court. Here, the parties must weigh what would be spent litigating a case in terms of time and resources against the potential benefit or reward that would be obtained by settling the case early.
In some cases, achieving any kind of settlement is difficult. For example, where a case of intentional wrongdoing is present, such as fraud or breach of contract, a settlement may be less likely to occur. One side may be unwilling to offer any amount of money in exchange for not engaging in litigation, believing that they can potentially prevail in court and obtain an even larger award.
At the same time, both parties must keep in mind that there is always the risk of not receiving a favorable outcome in court. As such, the process of negotiating a settlement is often seen as an effective way to avoid the potential consequences of litigation. At the end of the day, the decision of whether or not to accept a settlement figure is always up to the discretion of each party.
