When a person sues a company or another person in a civil lawsuit, they are usually seeking damages. In the US, damages are assigned a monetary value. When the person suing, usually called the plaintiff, wins the case, they are paid money by the defendant. Sometimes the judge or jury will award the amount requested by the plaintiff. Other times, they will be given less. If the plaintiff does not win the case, they receive nothing. Not all cases go to trial. Sometimes the parties will agree to settle the case before it goes to trial. This can be done for a number of reasons.
One is that the parties want the case to end. Often the subject of financial or emotional distress, a lawsuit can drag on for months or even years. After a while, it may be easier to end the case than to continue on through the many lengthy steps involved. There is usually a degree of what some may consider to be an invasion of privacy.
A civil case usually requires answering written questions called interrogatories. Although the lawyers involved in the case will help their clients with the phrasing, it still means disclosing and rehashing details and information some people would rather not divulge. Another process in the case is called a deposition. This is when the other side's lawyer
asks questions of each witness during a formal session with a court reporter present. Most witnesses do not enjoy the tedious process. Some cases will settle before it gets to this point.
Another reason cases settle is financial. Lawsuits cost money for both the plaintiff and defendant. It is often difficult for plaintiffs to come up with lawsuit funding. Lawyers must be paid a retainer fee in advance. They also charge hourly for their time. This includes preparation of answers to interrogatories, questions for depositions and learning as much information as possible about the case. Court reporters and expert witnesses must also be paid for their time. Sometimes it is just cheaper for the defendant and plaintiff to come to a lawsuit settlement agreement rather than pay all of the expenses necessary to go to trial.
Sometimes when a case settles or is planning to settle, the plaintiff may not receive their money right away. If they are in financial need, the plaintiff may receive pre-settlement funding from an independent financing company. While the firm takes a certain percentage from the amount, the rest of the money is usually given to the plaintiff with 48 hours of the advance payment approval. The settlement payment is then directed to the financing company and the plaintiff can move on with their life, as the case is concluded.
![[Valid RSS feed]](http://cdnimages.articlefriendly.net/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
