Should I Try To Settle Before Filing A Lawsuit?

We are asked this question frequently. And the answer in most cases is a resounding, Yes! Let me explain. First, apart from turning around quickly, the settlements that occur prior to filing in Court can be reasonably large. For example, we recently settled a wrongful termination case in only 3 months, prior to even filing in Court, for an amount exceeding $615,000. This settlement involved mobilizing medical records, medical opinions, psychological records, and the testimony of experts-- but it was all done in context of a mediation presided over by a neutral Mediator in a period of only 3 months! Second, apart from being speedy, and well compensated, these mediations can involve far lower costs. Avoided too are all the costs of depositions, the far heavier costs of experts at deposition and trial, the costs of transcripts, and the higher rate for attorneys after a complaint is filed in court. So your net or bottom line will not be diminished by the same level of costs. The time value of money will also be on your side. Finally, you get to move on with your life. And you don not have to worry about all the time and the uncertainties that attend a protracted lawsuit. Of course, each case is different, and each case has its own settlement value.

And, of course, not all cases can settle without a court fight and without court ordered discovery. But even in the many instances when you do have to go to court, a pre-court round of settlement negotiations can be invaluable to a later settlement, and also in understanding your case. In California, most employment cases are ordered into mediation after the first round of depositions are taken. The fact that the parties have already opened a dialogue may be valuable later. Sometimes, the parties are so polarized from the start that it is futile to even attempt a settlement without first filing a lawsuit. And in some occasions there are other factors (eg insurance, or important documents or other evidence controlled by the defendants) which might tilt the balance in favor of filing first and asking for settlement later. But quite often it is best to first attempt negotiation, and then to go to war, if the negotiation is unavailing. At the Rubin Law Corporation we have been involved in hundreds of mediations and regularly utilize retired judges and skilled attorney mediators to get disputes resolved early and well.