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A settlement is beneficial to the defendant in two distinctive ways. It terminates the legal action, and permits the defendant to end the litigation without admitting to any wrongdoing.

The article reports that the University of Oregon was able to end litigation initiated by a student who alleged that she was sexually assaulted by three basketball players. After the settlement, the plaintiff dismissed all claims against the university, including claims against the head basketball coach. The University stated that it had done no wrong, but did not want the bad publicity and were keen to end the lawsuit. The University considered the settlement amount of $800,000 an appropriate amount for a release from any further legal action by the alleged victim.

This example is a reminder that a settlement agreement is often the most cost effective method of resolving litigation.

Read the article here.

Take away:

  • A settlement saves face and prevents further legal proceedings.


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