Why Settling Early Can Be the Smarter Move
One of the main advantages of settling early, especially for a nuisance value, is the significant cost savings it offers. Pursuing a “take nothing” verdict through trial can rack up substantial legal expenses, often far exceeding the value of a potential settlement. For example, achieving a full defense victory can cost an employer $50,000 or more in legal fees, expert witness costs, depositions, and trial preparation, whereas settling early for a fraction of that cost—perhaps $10,000 to $20,000—can provide closure with far less financial impact.
Moreover, pursuing a “take nothing” verdict often requires extensive discovery and litigation, which can drag on for months or even years. This not only incurs higher legal costs but also adds stress and uncertainty to your business operations. In contrast, an early settlement allows you to focus on running your business without the distraction of a lengthy legal battle.
When Going to Trial is Necessary
That said, at Lozano Law Inc., we recognize that not every case is suited for an early settlement. When a claim is particularly weak, baseless, or presents high stakes for your business, taking the case to trial may be the right move—especially if the potential exposure exceeds the cost of litigation. In such cases, an aggressive defense is justified, not only to protect your interests but also to send a clear message that your company won’t pay out on frivolous claims.
However, it is important to weigh the cost-benefit analysis of going to trial. Even in cases where a full defense is achieved, the financial and emotional costs may not always justify the victory. As some experts have noted, the value of a “take nothing” verdict can be misleading when factoring in the overall expense to get there.
Is a Meritorious Win Really a Win?
Even in cases where a defense verdict is secured, it’s important to ask whether the win was truly worth the cost. For example, imagine spending $50,000 to secure a “take nothing” result, only to realize the exposure was limited to $20,000. In such cases, settling early for nuisance value would have saved your business a significant amount of money, time, and stress.
Conclusion: Strategic Flexibility is Key
At Lozano Law Inc., we approach every case with strategic flexibility. We evaluate whether an early exit through settlement will provide the best outcome for your business or if an aggressive defense is necessary to limit your exposure and set a precedent. By partnering with us, you’ll receive tailored advice based on a deep understanding of both the legal landscape and the practical realities of workers’ compensation defense.
