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New York City has taken a similar approach. They have now started fighting many more lawsuits even though the settlement amount would be less than the cost of
by specialp 13y ago
New York City has taken a similar approach. They have now started fighting many more lawsuits even though the settlement amount would be less than the cost of defense. The problem with settling is that it emboldens others to come in as they can threaten a costly fight, while knowing that the city is not going to do that and make easy money. So while it may save money in the beginning, settling gets more people to sue you. Now that lawyers know that their bluff may be called and they may have to fight in court, they will be much more selective of what cases they take in to fight. Of course it can sometimes backfire as in Research in Motion's case, but you cannot always give in to threats.
http://www.nytimes.com/2013/02/26/nyregion/new-york-to-stem-civil-rights-suits-is-now-reluctant-to-settle.html?_r=0 http://www.nytimes.com/2013/02/26/nyregion/new-york-to-stem-...