Deal or no Deal
A new study that compared the costs and benefits of accepting a settlement offer as opposed to going to trial, concluded that when you are suing and a deal is offered by the defendent, you should take the deal. That is the lesson from the biggest study ever undertaken on the impact of plaintiff decisions to accept a settlement instead of going to trial. Researchers found that most plaintiffs who pass up settlement offers to go to trial end up getting less money than if they had taken the settlement.
Are You Likely to Get an Offer?
Wyeth, the maker of Prempro, has already settled with two women who were plaintiffs in a lawsuit against Wyeth who they blamed for their breast cancer. Rather than allowing the court case to proc lawsuit eed, Wyeth offered a settlement of an undisclosed amount of money to each woman, and they accepted. Did they do the right thing? Would they have been better off taking their case to court?
The co-author of a new study, previewed in the NY Times (August 8, 2008), reviewed over 2000 lawsuits brought to civil courts between 2002 and 2005. In 61% of cases, plaintiffs who decided to pass up a settlement and go to trial, ended up with less money than if they had accepted the settlement offer. 15% of cases, both sides were right in going to trial in just 15% of cases.
Your Lawyer Might Think Otherwise
The author speculates that lawyers may not be explaining the odds of winning at trial adequately. Factors that influence plaintiff decisions to go to trial instead of settling include contingency fee arrangements. Lawyers, who like to gamble, may be willing to bet on a big fee from a trial rather than a more modest fee from a settlement.
The findings are consistent with what psychologists have found. People are more averse to taking risks when they expect to have something to lose, and more willing to take risks when they reasonably stand to gain something.
People considering a Prempro-related lawsuit may want to fully explore the issue of settlements with their attorney before any offer is on the table. That will give your attorney a chance to know your preferences and for him or her to explain his/her views on the subject to you. That way, both of you will be prepared and won’t feel ambushed by the other.
Need an Attorney?
Need an attorney to talk with about your concerns? Fill out a contact form on one of the pages on this website and we will pass it along to an experienced attorney who can help you think through your situation, gratis. To help you prepare for your conversation with an attorney, you may want to review Prempro On Trial and other articles on this site.
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