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>Like how is it not an admission of wrongdoing if you finally say "Ok, I'll give you money for this problem to go away". Because an admission could be used aga
by ABCLAW 4y ago
>Like how is it not an admission of wrongdoing if you finally say "Ok, I'll give you money for this problem to go away".
Because an admission could be used against you in future litigation, thus defeating the purpose of settling in the first place. Settlement functions as a method of allowing litigants to liquidate their conflicts without wasting court resources and expending exorbitant amounts of money going through all steps of the court mandated conflict resolution procedure.
Even if you don't agree that you are at fault, there is some chance that a judge may not agree with you. If you think that chance is 10%, and the suit is worth 100M + you expect to pay 20M in fees, wouldn't it make sense for you to settle for 10M? Regardless of how the case turns out, you're 10M ahead of your anticipated fee spend and 20M ahead of your risk adjusted expected result, and the other side ends up with the risk adjusted value of their claim.
- paulryanrogers 4y agoThere is a risk that settling sweeps chronic, bad behavior under the rug. Which is especially bad when powerful actors can use settlement to coerce victims into hiding the truth, and enabling future bad behaviors.
- largbae 4y agoIt absolutely does that... but the victim(s) sign the settlement, so it seems they are not ready to die on that hill.
- bmitc 4y agoThis is the issue though with these large companies. They have such immense wealth and power in the courts that they're basically untouchable. They do what they want and then pay people off without ever admitting guilt to make the flies go away.
- mikepurvis 4y agoSure, I think it's clear that settlements work from a game theory perspective, in the sense that two rational actors working for their own best interest can accept one. But the larger question is about whether this state of affairs is good for society. As citizens of a democracy, we (theoretically) get to have a say in how courts are run, and if the way the courts are run permits wealthy corporations to buy their way of repeated violations and be utterly unrepentant about it, maybe the rules need re-examining.
- gretch 4y ago> As citizens of a democracy, we (theoretically) get to have a say in how courts are run That’s not the point of civil cases between 2 private parties. If you want your say, call your congress person and vote for platforms which intend to introduce legislation. (Or whichever process your country uses). Not every proceeding has to be about deciding good vs evil. Things have their place.
- justinjlynn 4y agoYou neglect that civil trials often result in relevant case law, which benefits society when similar actionable events occur. This is a clear benefit to society which settling cases destroys. Legislation is the start of the law, judicial interpretation is the implementation and will of it. This too applies to civil cases to which the state is a party - if you want to avoid any possibility of creating case law, binding arbitration is what you desire. If you want the power and will of the people to solve and enforce the solution to your civil problem, you owe the people something also.
- gretch 4y ago> If you want the power and will of the people to solve and enforce the solution to your civil problem, you owe the people something also. They don't. Hence 'settled out of court'
- justinjlynn 4y agoSettled out of court does not mean not involving the court or using those resources - of course the use of the court and those resources is a strong means of coercing parties and, as such, yes they very much have used the courts' resources to secure a settlement instead of a judgement. Be it settlement or judgement, they will again use those resources if the party who settled or was judged violates that contract and or judgement. It's not nearly as simple as you suggest.
- deleted 4y ago[deleted]
- saagarjha 4y agoSettlements apply to anyone who could be a potential victim and strip them of their rights to sue, unless they opt out (this is insane to me!). So in this case the lawsuit filers settling actually does enforce bad behavior for society at large.
- Thorrez 4y agoIn this case it looks like anyone who made over $2m a year at least 1 year is excluded.
- jefftk 4y ago> Settlements apply to anyone who could be a potential victim and strip them of their rights to sue, unless they opt out (this is insane to me!). How would you solve the problem that class action suits are trying to solve while fixing the problem that someone else might end up speaking for you without you wanting them to? Note that this feature isn't specific to settlements; it also happens with judgments.
- Retric 4y agoDirect government intervention seems like a better solution to most class action lawsuits. Company causes significant harm to millions of people, gets shut down or massive fines seems like a better solution than having them send out a token payment vastly smaller than the harm caused. The first is an existential threat, the second just becomes the cost of doing business. Class action lawsuits sit in a strange middle ground where reputation damage isn’t enough but the government doesn’t care or the penalties are too small.
- saagarjha 4y agoSettlements already have companies contact you to ask you to opt out, they should change that to opting in.