Why you should settle the dispute?
A few good reasons
If you settle your dispute in a settlement conference, you’ll feel that you were truly heard and that justice was done in a more personalized way. It will give you greater confidence in the justice system and its players, including judges and lawyers. There’s also a good chance that your relations with the other party will be more cordial in the future, because you were able to reach an agreement.
Settling a dispute through negotiation and reaching a mutual agreement can offer several advantages and benefits, making it a favorable option for the parties involved. Here are some key reasons why settling a dispute is often preferred:
Control over the Outcome: When parties settle a dispute, they retain control over the outcome. They have the opportunity to actively participate in the decision-making process and shape the terms of the settlement, rather than leaving the resolution in the hands of a third-party decision-maker like a judge or arbitrator.
Time and Cost Savings: Settling a dispute can be a faster and more cost-effective option compared to traditional litigation. Legal proceedings can be time-consuming, expensive, and unpredictable. By avoiding lengthy court processes and associated legal fees, parties can save time, money, and resources.
Preservation of Relationships: Disputes often arise between parties who have an ongoing or future relationship, such as business partners, neighbors, or family members. By settling the dispute amicably, parties can preserve or even strengthen their relationships. This can be especially beneficial in business contexts, as maintaining positive relationships can lead to future collaborations and opportunities.
Privacy and Confidentiality: Settlement negotiations and agreements can be kept confidential, ensuring that sensitive information or potentially damaging details do not become public record. This can be particularly important for businesses that want to protect their reputation or individuals seeking to maintain their privacy.
Flexibility and Creativity: Settlements offer parties the flexibility to craft unique and tailored solutions that suit their specific needs and interests. They are not bound by the constraints of legal precedent or rigid rules applied in a courtroom. Parties can explore innovative resolutions that may not be available through litigation, allowing for more creative problem-solving.
Emotional and Psychological Benefits: Resolving a dispute through settlement can bring emotional relief and closure, reducing stress, anxiety, and the emotional toll associated with contentious legal battles. It provides a sense of closure and allows parties to move forward with their lives, free from the burden of ongoing disputes.
Certainty and Finality: Settlement agreements provide a clear and final resolution to the dispute. Once the settlement is reached and documented, parties can have confidence in the outcome and avoid the uncertainty and risk associated with trial outcomes or the appeals process.
While settlement may not always be possible or appropriate in every situation, it offers significant advantages over protracted litigation. It empowers parties to actively participate in finding a mutually agreeable solution, promotes efficiency, preserves relationships, and provides a more satisfactory resolution overall.
Legal Costs
Litigation and even alternative dispute resolution are very costly. In some jurisdictions, the majority of legal costs are recoverable by the successful party against the losing party, but very rarely are all of the legal costs recovered. In some jurisdictions, none of the lawyer’s fees (or only a nominal amount) are recoverable and therefore even if a party succeeds (either in bringing or defending a claim) they are still going to incur legal fees which they cannot hope to recover.
Time
litigation and arbitration are extremely time intensive for the parties, both in terms of the process itself and the disruption it can cause to one’s personal life. It can also be more cost effective to settle a dispute (e.g. if it is a dispute over payment for goods or services) for a lower amount than to face the consequences of months (or even years) of time spent on dealing with a claim in court or through an arbitral tribunal. A party may well be better served on focusing on the core business itself to replace the business/money it has written off, which may well take a fraction of the time that a court/tribunal would take to reach its decision (and any subsequent appeals which may happen).
Maintaining Business Relationships
Even when parties have a dispute it may be that they still want to continue to trade/do business with one another. Therefore, negotiating a settlement and/or compromise is a much better way of preserving the status quo between the parties.
Avoiding uncertainty
If a case goes to court, there’s no guarantee if a plaintiff will be awarded any damages at all and there’s no clear way to predict exactly how much a defendant could have to pay. Plaintiffs benefit from settling because they know they’ll get some kind of remedy and defendants benefit because they can control their costs more and don’t have to agree to a settlement they don’t think is fair or appropriate.
Avoiding court proceedings
Court proceedings can be costly and stressful for all involved parties. Taking a dispute to court can also be damaging to your brand identity. If you are able to negotiate a settlement, you can include a confidentiality agreement to ensure that details about the dispute are kept confidential.
Resolving the legal issues quickly
You may be able to negotiate a settlement quickly and resolve the dispute in a timely manner, rather than waiting months or even years for the dispute to be resolved in court.
Simplicity
All you have to do to take part in a settlement conference is fill out a form. If you are being represented by a lawyer, they will do this for you. Your request for a settlement conference can only be accepted if all the parties involved agree to take part in it. What’s more, you can take advantage of this procedure at any time before the date scheduled for trial.
Take the Growth Path.
Be stress-free and focus on your work.