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Saturday, January 21, 2012 2:55:55 PM
settling, by nature, is an admittance to the actions accused.
No, it is not. Settlement is not "an admittance to the actions accused." Settlement, from a defendant's perspective, involves a costs/benefits analysis. Even in a meritless lawsuit, if you can settle for less than your anticipated litigation costs, then settlement should be considered as a possibility. Some may choose to vigorously defend a suit, simply out of principle if nothing else, while some may choose to settle at a reasonable value. A reasonable settlement value, in turn, involves, among other things, consideration of (1) anticipated litigation costs, (2) odds of a plaintiff's verdict, and (3) the estimated jury/trial award in the event of a plaintiff's verdict. It is unrealistic to presume that a settlement constitutes an admission by the defendant of the allegations in the complaint.
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