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Damages and the business decision of potential settlement

On Behalf of | Jul 26, 2023 | Business Disputes

Business leaders in the San Francisco Bay Area probably go straight to the heart of the matter when litigation arises: What damages are being sought?

Of course, the alleged damages in any given lawsuit can vary widely, oftentimes depending on the type of lawsuit and the claims involved.

For example, contract disputes will usually involve different types of damages than insurance claims.

What is the business decision?

The types of damages and the amounts sought can be crucial factors when decision-makers are trying to make the business decision of whether or not to settle a case.

Our readers may know that a very high percentage of civil lawsuits are settled out of court, sometimes through direct negotiations or even through mediation, among other potential methods. These days, only a small percentage of civil lawsuits actually go to trial.

When the potential for a settlement comes up in litigation, the idea of making a business decision about the case and the damages is usually a topic of discussion.

What does that mean? Typically, it means: Is the cost of settlement going to be less than the cost of continuing in litigation?

Litigation oftentimes moves towards a rather uncertain end, for both parties. In essence, is it better for business to just settle the case and move on?

That decision will be unique for any given company or organization in California, depending on the case. But, as you weigh that decision, hopefully you are receiving the best information about your litigation options. Without the right information, it is hard for business leaders to make the right decision.