Settlement Shocker!! Early Settlements Save Businesses Money

From the National Law Journal — Academics Proving that Which Everyone Already Knows

Study Shows Early Litigation Settlements Save Businesses Money
Sheri Qualters
The National Law Journal
June 9, 2008

A study of court settlements in personal injury lawsuits against businesses estimated companies could save an average total of $114,000 per claim or $670,000 for severe injuries by promptly settling cases instead of fighting them in court.

The study, which was published this month in the Columbia Business Law Review, also projected $32,000 in savings from lower legal expenses, or about $211,000 for cases involving severe injuries.

The study based the projections on how much it would cost businesses to make “early offers” to pay out-of-pocket medical expenses and wage losses of injured claimants. The quick settlements would reduce legal fees and “pain and suffering” damages.

University of Virginia School of Law professor Jeffrey O’Connell and California State University-Northridge associate professor Patricia Born wrote the study, which analyzed court settlements of personal injury and defective product injury cases against companies between 1988 and 2004 in Texas and Florida

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Victoria Pynchon

Attorney-mediator Victoria Pynchon is a panelist with ADR Services, Inc. Ms. Pynchon was awarded her LL.M Degree in Dispute Resolution from the Straus Institute in May of 2006, after 25 years of complex commercial litigation practice, with sub-specialties in intellectual property, securities fraud, antitrust, insurance coverage, consumer class actions and all… MORE >