LogFAQs > #951736864

Revelation34 posted...

What? Out of court settlements exist because the party that pays out knows they would lose badly otherwise.

As much as I wish this was the case it's not true. The reality is that the settlement usually happens when, say, the cost for the settlement is lower than the cost of court proceedings, the court proceeding would generate bad press regardless of the outcome, or the parties involved feel it would be quicker and easier to just settle for a payment than get involved in a lengthy court process, and that's far from all the possible reasons why. So for example a company accused of using copywrited material might opt for the settlement even if they did everything right because the lawyer fees would be too high, they feel the judge might rule against them for some technical reason, or to keep the story from getting too big and potentially tarnishing their image even though they are in the right. And yes, a lot of people do try to abuse this my making false and/or frivolous claims in the hopes that they'll opt for a settlement instead of taking it to court. It rarely, if ever, works.

Edit: Also remember that both parties need to agree to the settlement. As such someone may offer a settlement if they don't want to deal with what would likely be the judges ruling and the hurt party also does not desire said outcome. So if there is a choice between one party going to jail and the other party receiving only minor compensation they may opt to, instead, go with a larger compensation in return for dropping the case (and thusly not going to jail).

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I am the gentle hand who heals, the happy smile who shields, and the foot that will kick your ***! - White Mage