Please note: nothing in this discussion constitutes legal advice. For assistance with your individual case, you should consult with an attorney.
A settlement resolves a dispute through an agreement between the parties, while a trial asks a judge or jury to decide the dispute based on the evidence and applicable law. Both can resolve a civil dispute, but they differ in procedure, control, time, cost, risk, privacy, and finality.
What Is a Legal Settlement?
A legal settlement is an binding agreement between parties to resolve usually all issues in a dispute through a private agreement and without going to trial. The parties negotiate settlement terms and decide whether to accept them. A settlement may happen before a lawsuit is filed (such as pre-suit negotiation or mediation), during pending litigation, or before going to trial. A few cases settle during trial.
Once properly documented agreed to, and signed, a settlement provides a clear and final resolution. The terms and legal effect depend on the agreement and applicable law. Case settlements almost always involve a release, where one or all parties give up the right to future suits over the same legal issues.
What Happens at a Civil Trial?
A civil trial is a formal court proceeding under established rules and procedures where the parties present evidence and legal arguments. The judgepresides over the proceeding and applies the applicable law. In cases involving a jury, jurors consider all the evidence and reach a verdict.
A trial almost always involves witnesses, expert testimony, documents, exhibits, objections to evidence, motions, and arguments from the attorneys. The trial ends with a final decision from the judge if there is no jury, or a jury verdict.
Settlement vs. Trial: Key Differences
| Factor | Settlement | Trial |
| Decision-maker | The parties | Judge or jury |
| Control | Parties have greater control over terms | Court determines the outcome |
| Certainty | Agreed terms provide greater certainty | Verdict or judge’s is final unless changed on appeal |
| Time | May resolve a case without completing a trial | Requires trial preparation and court proceedings |
| Cost | Eliminates future litigation costs | Can involve substantial legal and court costs |
| Risk | Parties accept mutually agreed terms | Parties face the risk of an unfavorable verdict or decision |
| Privacy | Can offer greater privacy, depending on circumstances | Court proceedings and records almost always public |
| Finality | Properly documented terms resolve the dispute by binding contract | Judgment may be subject to available post-trial procedures or appeals |
How Does the Settlement Process Work?
Negotiating the Terms
The parties, often through their attorneys, discuss the claim, evidence, liability, damages, and possible settlement offers. Negotiations may happen directly or with help from a neutral third party, such as a mediator.
Reviewing the Agreement
Before accepting a settlement, the parties and their attorneys should review the proposed terms. The agreement should clearly state what each party is agreeing to and how the dispute will be resolved. Settlement agreements generally include a release.
Finalising the Settlement
After the parties agree, the settlement is documented and finalized according to the applicable requirements. A properly completed agreement is binding and brings the dispute to an end.
How Does the Trial Process Work?
Preparing the Case
Attorneys prepare evidence, witnesses, exhibits, legal arguments with motions and briefs, and other materials needed for the court proceeding. Trial preparation can involve substantial time and expense. Witnesses are generally subject to a deposition (sworn testimony outside of court) before trial.
Presenting Evidence
The parties present evidence and testimony according to standard court procedures. Witnesses and expert witnesses may be called when relevant to the case. The rules of evidence apply to all documents and witnesses.
Judge or Jury Decision
The judge or jury considers the evidence and legal arguments. The resulting verdict and judgment determine the outcome, subject to applicable post-trial procedures and appeal rights.
What Are the Benefits of Settling a Civil Dispute?
Settlement can give parties greater control over the terms of resolution. It may also avoid starting litigation or going to trial and reduce litigation expenses. Depending on the circumstances, settlement discussions and agreements may provide greater privacy than formal court proceedings. Court filings and proceedings in court are public records.
Settlement also removes the uncertainty of waiting for a judge or jury to hear and decide the dispute. However, accepting a settlement means giving up the opportunity to pursue a different result at trial.
As a general rule, criminal cases take priority in scheduling civil trials because of the right to a speedy trial.
When Might a Case Need to Go to Trial?
Trial may become necessary when the parties cannot reach acceptable settlement terms or when a disputed issue,such as liability, requires a court decision. The strength of the evidence, liability, damages, settlement offers, insurance coverage, costs, and goals of the parties can all affect this decision.
How Mediation Can Help Before Trial
Mediation gives parties another opportunity to resolve a civil dispute through negotiation. A neutral mediator helps the parties communicate, identify areas of disagreement, and consider possible settlement terms.
Mediation can take place before or during litigation. If an agreement is reached, the case would be resolved without starting or completing a trial. If no agreement is reached, the parties may continue with the litigation process.
How Harold Paddock Supports Civil Mediation and Settlement
With more than 53 years of legal and litigation experience, the practice brings extensive court and mediation experience to civil disputes. His background includes serving as a Magistrate, Settlement Week Coordinator, Court Mediator, and Senior Magistrate. His mediation experience includes personal injury, wrongful death, contracts, foreclosure, workers’ compensation, land use, eminent domain, consumer sales practices, and business litigation.
Final Thoughts
A settlement allows parties to agree on how to resolve a dispute, while a trial places the decision with a judge or jury. Settlement may provide greater control and certainty, while trial provides a formal court determination,which could be subject to an appeal. The appropriate approach depends on the facts, evidence, costs, risks, goals, and applicable law. Mediation can provide another opportunity to reach a settlement before a case proceeds to trial.
Frequently Asked Questions
What is the difference between a settlement and a trial?
A settlement is an agreement reached by the parties. At trial, a judge or jury decides the disputed issues based on the evidence and applicable law.
Is it better to settle or go to trial?
It depends. Neither option is better in every case. The appropriate choice depends on factors such as evidence, liability, damages, insurance coverage, costs, risk, timing, and the parties’ goals.
Is a settlement faster than a trial?
A settlement may resolve a case without starting or continuing litigation, or completing a trial, but the time required for negotiations varies from case to case.
Is a settlement confidential?
Settlement discussions or agreements may have privacy or confidentiality protections, but not every settlement is automatically confidential. Mediation conferences in Ohio are governed by the Uniform Mediation Act, which protects most mediation discussions from later disclosure.
What happens if settlement negotiations fail?
If the parties cannot reach an acceptable agreement, the case may negotiate further, have a second mediation, continue through litigation and potentially proceed to trial.
Can mediation help a case settle before trial?
Yes. Mediation can give parties a structured opportunity to negotiate a settlement before suit is filed or during litigation.
Please note: nothing in this discussion constitutes legal advice. For assistance with your individual case, you should consult with an attorney.