It seems to me like this is just a bribe to shut up about the cause of the lawsuit. It doesn’t lead to justice, and is not punitive enough in the case of large corporations.
I find this disgusting and immoral, but maybe I’m getting something wrong…? I hope so.
Please explain to me why this is, I’m getting irrationally angry at the fact that no one goes to trial for anything, including environmental hazards, rape, etc.
Edit: Found a source that details all the good reasons to go to trial instead of settling. Personally, an admission of guilt and real consequences to a misdeed are incomparably more important than a slap on the wrist like a settlement. https://www.askadamskutner.com/personal-injury/dont-settle-outside-of-court/
Edit 2: I see all the replies mentioning time and costs as the biggest reasons. And I get that, rationally. But sometimes people are irrational, I can’t believe 90% of lawsuits settle… (actually it’s 95% - https://thelawdictionary.org/article/what-percentage-of-lawsuits-settle-before-trial-what-are-some-statistics-on-personal-injury-settlements/ )
Lawsuits are expensive, and large companies can afford the best lawyers, while the government often can’t.
I mean, I agree with you. Companies that break the rules should get sued and get punished. But the reality often is that the person who files the suit often doesn’t really have the time and money to fight all the way to the end. And remember that even then, the court may not always rule in favor of the person who filed the lawsuit. So settlements end up just being a practical shortcut.
Unless the two sides significantly disagree about the chances of winning, they’re both better off avoiding the costs of trial and the risk of not being able to predict the result by settling. Also, they can have NDAs as part of the settlement and it doesn’t set a precedent, so even if it’s a large settlement other people will be less likely to sue than if they lost.
As already mentioned, lawsuits are expensive. And if they don’t go your way, they can even get more expensive as you may have to pay the other side’s legal fees.
Also, lawsuits take forever. Even when you go through trial and get a verdict, there is still years worth of appeals coming. Even with a win, you maybe be waiting years.
Settling is far cheaper and sees much faster results, even if you are confident you will win.
Just had this discussion with an attorney friend actually. As a corporation, it is reduction of risk. Spend time on a jury in a criminal case and you’ll see how variable the verdict-making process really is, sadly. Most attorneys will force the hand of corporations to settle — guaranteed small/ medium payout, or a roll the dice chance at having to make a massive payout — they’ll always go the settle route.