The Benefits of Litigation Over Out-of-Court Settlements

Litigation is the process of settling a dispute in a court of law. Though they take a while to complete, the benefits they offer make them worth it.

An out-of-court settlement is an agreement between two parties to resolve a dispute without court intervention. Usually, the insurance company of the at-fault party will want to settle rather than go to court. When negotiations for a fair settlement fail, the case goes to court.

When you take your case to court, it’s best to hire a seasoned attorney to represent you. Attorneys have specialized and extensive experience in the field. This article details the advantages of litigation over out-of-court settlements.

Benefits of Litigation Over Out-of-Court settlements

Resolution to Disputes

The primary purpose of a lawsuit is to settle a dispute. Sometimes, the parties involved cannot agree on a settlement, in which case a trial or lawsuit helps resolve the problem.

Higher Settlement

One of the advantages of taking a case to court is the chance of getting a higher settlement. Insurance companies often try to get you to settle for lesser compensation during out-of-court settlement negotiations. This isn’t in your best interest.

When such companies are taken to court, they will be forced to pay the actual amount they owe you. The court will thoroughly analyze the case and ensure your rights are protected.  

Punitive Damages

Punitive damages are awarded to defendants in addition to compensatory damages. These damages are awarded when the defendant has been exceptionally negligent or malicious.

Punitive damages are only awarded in court. If the victim wishes to seek punitive damages in addition to compensatory damages, the case has to be taken to court.

If the defendant is a habitual offender or has been callous in their behavior, the victim should drag them to court. This might prevent them and others from committing similar crimes in the future. Having a record ensures that the defendant will be punished severely if they repeat their crime.

Discovery Process

When a case is taken to court, there is often a process called discovery involved, where both parties thoroughly investigate the details of the case. Such investigations usually bring to light information that was previously not presented or available.


This increases the chances of the case being decided in your favor and also increases the damages owed.

Seeking Justice

Losing a loved one can be extremely painful. Victims may wish to seek justice for their loved ones in such cases. Taking their case to court is a way for them to achieve this goal.

In another perspective, loss of life due to avoidable circumstances is not something that should be overlooked or taken lightly. Taking such cases to court ensures that the defendant is appropriately punished for their actions and that future loss of life is prevented.

Setting a Precedent

A legal precedent is a previous case that can be used to justify subsequent actions. Some cases set legal precedents because of exceptional circumstances.

Future victims of similar cases can benefit when such cases are tried in court. The victim has the chance to contribute to the law and society by taking their case to court.

Provide Clarity

In a case where several people are injured due to a stairway collapsing at a mall, the case can get complicated as multiple parties are involved. Court intervention can provide clarity on such matters.


The liable parties in this include:

  • The property owner who failed to disclose the danger
  • The manager for failing to carry out routine inspections
  • The construction contractor for failing to build the stairway well
  • The architect for failing to design a safe stairway.

While out-of-court settlements can be quick, litigation offers a clear resolution with fair compensation. In some cases, litigation has a clear edge over an out-of-court settlements.