desiree

By Desirée M. Charbonnet

Partner at Charbonnet Law Firm LLC

Practice Areas: Car Accident, Personal Injury

Published On: August 10, 2020

Last Updated: March 7, 2025

The Positives & Negatives of Settling Out of Court

Are you part of a personal injury claim? Some cases are taken to court, but others decide to settle out of court. This can actually be a good idea and there are a lot of positives, but there are also some negatives that comes to settling out of court.

Positives

  • Appearing in court can be stressful and take a lot of your time. By settling outside of court, it reduces burden, stress and will actually save you time.
  • Defendants can sometimes avoid payment if they go to court by declaring bankruptcy, meaning you may not be able to collect damages. When settling out of court, you will more likely be able to collect compensation.
  • Court fees and attorney fees can add up. When you go to court, you will be paying more in attorney fees. You can actually save money by settling out of court by avoiding these extra costs.
  • When settling out of court, you are able to keep your case and all of the details private. This doesn’t happen when you have to go to court as all of the details of your case would be public record.

Negatives

  • When you do go to court, you could be awarded more money in damages. Settling out of court could cost you some compensation.
  • You can only receive punitive damages, like compensation for emotional suffering, if you take your case to the courts. Keep in mind that settling out of court is usually very cut and dry and will not include punitive damages.

Settling out of court is not an easy way out and can sometimes be the best option for your personal injury case. This is why you should always speak with an attorney before deciding on your case and always take their advice.

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