Out of Court Settlement

An out of court settlement is a legal arrangement between both the plaintiff and the defendant to settle their dispute without fighting their case in court. Civil disputes are frequently settled out of court with alternative conflict resolution techniques such as mediation or arbitration.

Out of court settlements can be settlement offers negotiated between a plaintiff and defendant for lost wages, pain and suffering and medical costs or they can be settlements negotiated between the plaintiff and the insurance company. Some types of accident claims, such as uninsured motorist claims where you are forced to bring a claim against your own insurance company must be settled out of court through arbitration per a claimant's insurance contract.

The benefit of an out of court settlement is it can expedite payment to the plaintiff and lowers the cost of the case. Accepting an out of court settlement, however, can mean you will receive less compensation for your loss then you might have won if you had gone to court and in some cases the settlement offer may not fully compensate you for your injuries.