When should you settle out of court?

Question

I am a landlord who is owed money. The court process is long and the attorney fees are high but I think I would probably win more than if I settled. But that is not a sure thing either. Is it better to cut your loss and get out or fight it?thanks

I already have a lot of money into this with attorney fees

Answer 1

It varies with the situation - but my general advice is that if you can swallow your anger and accept less than you are owed, it is usually better to settle. It saves a great deal of time, aggravation, and expense -- and your lawyer fees will drastically increase if you go to trial. (And, usually, you have to pay your own legal fees even if you win.) Also, even if you should win, sometimes things go wrong: a bird in the hand is worth . . . .

Answer 2

Go with your gut instinct, but keep in mind the nature of settlement is to reach an agreement in which NO ONE is happy, that's why they call it settling. Ideally, a sucessful settlement leaves one side feeling like they gave too much and the other like they didn't get as much as they should have, but the issue is over and everyone can get on with their lives without blowing more time, $$$, and life energy on the ordeal. Both sides win and both sides lose.

Only you know when it's best to gamble on the fight and when to settle and get at least a little satisfaction and some closure. Good luck.

PS: When you gamble on the justice system it rarely matters how right you are. Unfortunately even a case that looks like a slam dunk can be lost in the hands of a jury... and that doesn't even take in to account your own attorney's possible oversights, a judge having a bad day or any number of other unforseen pit falls your case could encounter. Do some deep soul searching before deciding to move on. It doesn't hurt to try mediation as part of the settlement process, it's non-binding and you can always back out if no agreement is reached. Nevermind the glaring question of how you will force the errant tenant to pay up even if there is a judgement against them. People who don't pay their bills don't pay their bills. Not even when a judge said they should. It just goes on their credit report as a judgement and you'll have to file a lien which will cost you more $$$ in the end. If it's principle you're after, go for it. If it's $$$ you're after, litigation is always a bad investment.

Answer 3

"Next time find an attorney who will take the case on a contingency basis - S/he gets paid when the case is settled in your favor."

Good luck with that. When people call my office and ask if we take rent recovery cases on contingency, I have to stifle my laughter when I tell them "no". Common sense: If they had the money, 99% of the time they would have paid and not been evicted in the first place.

You have to ask yourself ... do you want to "win" or do you want to get cash in your hand?

If your attorney fees are "high" in a non-payment of rent case, then you have the wrong attorney. Same thing if the process is "long", because it isn't. Possession for cause cases can get expensive, but not simple non-payment cases. Same thing for small claims cases. The fees are not outrageous. The complaints and summonses can be drawn up in 1/2 hour. In between that and meeting with you, it should cost $200 max. If an answer needs to be filed, add another $100 or so. A court appearance could add anywhere between $200 to $500 to that, but you probably can negotiate a flat rate for the whole deal that is pretty fair.

You didn't post enough details for a tailored answer, so in general it would depend on your chances of recovery if you went forward. If they 1) have a good paying job and 2) you know where they work and 3) they aren't in a profession where they could just up and leave and get a new job elsewhere in a matter of days or hours ... then it might pay to go ahead and litigate because you would be able to get a wage garnishment if they didn't pay.

If the tenant is willing to settle, get certified funds and dismiss the case only after you get paid.

If the ex-tenant works a minimum wage job or something, it probably isn't worth it to go after them. If you win, they can job skip and a judgement probably won't bother them in the least. And serving informational subpoenas every few months in order to chase them down get expensive. Or they might intend to pay it off, but because of their circumstances you willl be chasing them for their $50 a month payments until Kingdom Come.

Next time, when someone you don't have a solid relationship with gets behind, file for eviction based upon non-payment as fast as legally possible so that you cut your losses and don't end up being owed a lot of money.

Answer 4

The issue boils down to precedent. You are already out money for the attorney and rent from the tenant. A court settlement will provide full reimbursement, unless the tenant is destitute, of fees and back due rent.

In addition, it sends a message to other tenants, that if they don't keep up with the rent, you will take them to court.

Only the Defendant should make the decision to proceed with a court case or not, since s/he is the one with the potential liability.

P.S: Next time find an attorney who will take the case on a contingency basis - S/he gets paid when the case is settled in your favor.

Answer 5

and not applying a courtroom order, he can in simple terms up and end paying at any time. that's why human beings get the courtroom order. And why purely have him pay for some years? Make him pay till the newborn is eighteen. It does no longer propose he has to have any visitation or shared custody with your son. those are rights, and newborn help is an criminal duty. no longer an identical. Later down the line, in case you do marry your contemporary boyfriend (or maybe yet another guy), and he needs to take over the accepted jobs and responsibilities of being a father, then you definately can circulate in the process the technique of a step-parent adoption. As to what to tell your son if he asks approximately his bio-father, that's something you need to establish as a parent. He won't even ask if he's in a solid dwelling house and you enhance him suitable. I observed my spouse's 2 daughters from her first marriage, and we in no way concealed the actuality that they've been observed. that they had a pair questions, and we responded particularly, with out putting something adverse on it. they have often happening it, and we've in no way had any vast concern with this.

Answer 6

It depends on the circumstances and dollar amount owed to you. We can't make this decision for you. Seek advice from your lawyer is my best advice to you

Answer 7

It all comes down to confidence. Are you more confident that you will win, or loose. There's your answer.