Many lawsuits are settled before they ever enter a courtroom. That’s why when planning a litigation strategy, a settlement strategy should also be planned. InnovaCounsel helps their clients with this through dispute resolution, litigation strategy and management. When creating a strategy, keep these things in mind:

1. Define Success

Some lawsuits are only focused on one thing: money. However, sometimes the preferred outcome is something else. Companies often want to avoid the negative publicity that can come with a lawsuit. However, if the lawsuit is being brought by a disgruntled employee, giving into their requests might set a bad precedent for other employees. The first step to a litigation strategy should be to decide on the preferred outcome.

1. Set Emotions Aside

Lawsuits often start with anger. What people should consider before filing a lawsuit for revenge, is that it’s rarely worth the cost. There’s also the chance that they will lose. Settlement may feel like a cop-out, but following emotions is rarely wise. Statistically, settlement is more likely to happen and often crushing the enemy just isn’t worth it.

1. Know the Limits

The reason most people end up settling is because they don’t believe they will achieve their preferred result in trial. Settlements are also unlikely to meet every objective. That’s why it’s called settlement. It is unlikely the settlement will provide millions of dollars and have the competitor agree to close their doors. Set attainable goals for settlement.

1. Understand Why Cases Settle

There are two factors that drive settlement. The first of these being uncertainty of the outcome. The results from a trial are not certain. Settlement is thought of as “buying certainty.” The second factor is pressure or leverage. Both sides usually have financial pressures. Sometimes one party has no leverage whatsoever, making things fairly straightforward. In other cases, leverage isn’t always visible. It could be attorney fees, or something of that nature. Evaluate the other person’s possible pressures and leverage.

1. Be Firm, But Flexible

Stick to the litigation goals. Just because the plaintiff asks for more money doesn’t mean he should get it. However, flexibility is also necessary during litigation. As long as the goals that have been set are realistic and attainable, there’s no reason to stray from them. However, if they aren’t realistic, they might need to be reevaluated and adjusted.

If the possibility of litigation is looming, contact InnovaCounsel. They can set up a litigation plan and will work to achieve the desired result of a trial or settlement. Ask them about setting up in-house counsel to manage legal issues before they get to the point of litigation.