Lawsuit Settlement – Simplified
Through this article we will firstly try and understand the term ‘lawsuit settlement’, the later part of the article will take you through the major intricacies of the settlement.
Understanding the term ‘Lawsuit settlement’:
In law attorney personal injury, when the disputing parties usually reach an agreement either before or after the court action begins, it is termed as ‘settlement’.
The settlement offers an option to the disputing parties to end the dispute without any court trial. The option of settlement arises when the disputing parties sue each other in civil proceedings. Certain conditions/amount, etc is included as a part of the contract and as per this settlement contract, the disputing party forgoes its ability to sue the opposite party in return for the settlement terms and conditions.
However, the settlement requires some legalities from the disputing parties and thus is conducted by the order of the court and this happens only through the joint stipulation of the parties.
There are lawsuit settlement contracts wherein the settlement involves monetary provisions. In this case, the plaintiff and the defendant can just enter into a settlement by simply furnishing a notice document to the legal authorities.
Benefits of lawsuit settlement to the disputing parties:
Lawsuit settlement is beneficial to both the parties as it results into a lot of savings in terms of costs involved ( cost of fees, finding expert witnesses, etc) time spent, stress and more. The major benefit involved is in terms of avoiding mental stress that a lawsuit causes. This results into a majority of the cases being solved by contract
There are a lot of controversial cases involving high media glare that appear for lawsuit settlement. It is mandatory for both the disputing parties in this case to keep the case and all other relevant information to the case secret and confidential from the public scrutiny. This can result in the best interest for both the disputing parties.
Countries and their specific jurisdictions:
Different countries observe difference in their jurisdictions. For e. g, the confidentiality issue mentioned above is observed in England and Wales in a form of an order known as Tomlin Order. Tomlin order is nothing but a standardized procedure consent order. The order contains an agreement wherein once the agreement has been reached, it is stayed by a court order, so that the disputing parties cannot take any further action on the opposite party.
Another such example is that of Israel. In Israel almost all lawsuit settlement agreements or contracts are sent to the court. There is a purpose behind sending these agreements to the court. First reason is to control on the payments terms and to check out what the court will order in such case. This helps to first decide based on the judgment of the court wherein either one or both the parties will be asked to pay.
Lawsuit settlement in criminal cases:
As far as criminal cases are concerned plea bargain is the closest way of lawsuit settlement.