What is the Difference Between Out-of-Court Settlements and Court-Ordered Judgments?
If you are wronged by an individual or corporation, filing a lawsuit may be the only way to achieve justice. However, there may come a point when you have to choose between accepting an out-of-court settlement and taking the matter to trial. Here’s a brief discussion of the differences between out-of-court settlements and court-ordered judgments:
Out-of-Court Settlements
Out-of-court settlements are fairly self-explanatory. They usually involve an amount paid from one person or organization to another outside of a legal framework. The vast majority of personal injury cases end with an out-of-court settlement, as it saves a great deal of the time and money that would be spent during court proceedings. It’s especially advantageous for high-profile companies to settle out of court, as it keeps media coverage to a minimum.
Court-Ordered Judgment
If both parties fail to agree on a suitable settlement, the case will then go to trial, where a judge will listen carefully to both sides and make a judgment. The result of a trial is legally binding. If one party refuses to pay the other, the trial process may begin all over again. In addition, a court has the authority to bring about punitive damages to the guilty party, which is meant to discourage similar behavior in the future.
End Result
Once you accept an out-of-court settlement, you forfeit your right to press charges against the guilty party. In addition, the settlement amount will typically be lower than the amount that you stand to gain from a court-ordered judgment. Still, taking the settlement money and getting on with your life is less of a risk, and often the better choice.
Do you believe you or a loved one have a personal injury case or a product liability case in the Orlando area? Contact Greg Smith from Oldham & Smith Attorneys at Law at (352) 508-4661.
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