Negotiate a Pre-Litigation Settlement
In sexual harassment cases, as in other types of cases, settlement is the rule not the exception. Given that settlement negotiations will likely occur, what are the advantages to a pre-litigation settlement?
- For both parties pre-litigation settlement is less expensive than filing a claim and litigating the claim.
The cost of defense to the employer may well make it worth settling a claim early. When drafting a demand letter to opposing counsel or to the company if they have not yet retained counsel, always include a reasonable estimate of what you believe the cost of defense may be in the case. Sexual harassment cases usually involve issues of fact, thereby precluding summary judgment and thus enabling a case to go to trial.
Make sure your pre-litigation demand letter points out both the likelihood the case would go to trial and the cost involved.
- In pre-litigation settlements, both parties can control the process which enables the parties to negotiate unique remedies that a Court may not be able to provide. The parties are also in the position to dispose of the dispute quickly without disruption to the work environment or business.
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A pre-litigation settlement is private and are no public records of the allegations or settlement.
- Damages are negotiated and the unpredictability of litigation is avoided. With the new law regarding filing a sexual harassmentt claim with the circuit court, large jury verdicts are now possible.
- A pre-litigation settlement allows the parties to resolve the matter before both parties are emotionally and financially invested in the case.
Once an employer invests thousands or tens of thousands of dollars in legal fees and time into a case, it may wish to see the case through to trial to justify the expense and to seek vindication.
I believe a pre-litigation settlement demand is always warranted and useful. Even if the demand is rejected, at later stages in the case, if the other party wants to settle the case, you can always point to your first attempt and use that dollar amount as justification for your new higher amount.
