What are the benefits of an “out-of-court” settlement?
Described by his barrister, David Sherborne, as a “monumental victory”, Prince Harry has secured a settlement of his claim against the News Group Newspapers (NGN) over a lengthy legal battle regarding claims of unlawful intrusion into his life.
Prince Harry alleged that journalists and private investigators instructed by NGN adopted unlawful tactics to gain information into his private life. Such tactics were then alleged to have been covered up by senior executives at NGN.
In a very public tabloid apology, NGN apologised for a “serious intrusion” and admitted to “incidents of unlawful activity” purportedly carried out by the Sun newspaper between 1996 and 2011 which included extensive coverage into the private life of his mother, Princess Diana.
It is reported in the media that Prince Harry had originally wanted this case to go to trial, so what may have caused the Prince to “come to the table” and settle this matter at this stage? In this article, we examine the benefits of settling claims out of court.
Benefits of out-of-court settlements -v- going to trial
The decision to go to trial or to settle a claim can be complex, with a number of factors requiring careful consideration including personal circumstances, financial means, appetite for litigation and legal advice.
Out-of-court settlements usually offer a speedier resolution to litigation. Generally speaking, a less-complex, straight-forward dispute can take around 18-24 months to reach trial in the county courts of England and Wales from the date the claim is issued, with some more complex matters taking much longer.
Litigation can often therefore be a long-term commitment. Aside from the time expense, preparing a case for trial can accumulate significant legal costs. Trial itself involves a significant amount of preparation of evidence, witnesses, and legal representation as well as court expenses. Reaching an appropriate settlement of a case can avoid unnecessary costs expenditure.
Settlement is often seen as a “less stressful” route to resolution of a dispute. Legal proceedings can be emotionally draining, and the trial process is often far removed from media portrayals of a court room showdown. Needless to say, at the point in which the court hears your case, you are at the mercy of the judge which offers an element of unpredictability and no guarantee of compensation or a favourable outcome to you.
Sometimes obtaining a settlement can allow the parties to receive something as part of the settlement, e.g. an apology or an exchange of an asset, which may not be within the gift of the court to order at trial. This can be beneficial for both parties.
Privacy is often an important consideration for litigants when considering settlement. In most civil cases, the details of the case become public including the damages sought by the claimant and any sums claimed by the defendant by way of counterclaim. This can often feel like an invasion of privacy for litigants however settlements are usually private matters offering protection of your personal and financial information from becoming public record.
The legal system in England and Wales actively encourages settlements via other means, such as alternative dispute resolution, with a duty upon litigants to consider settlement without the need for trial and in most cases, the court will order a stay in proceedings for parties to negotiate and/or consider settlement of their dispute by other means.
The specifics of how or why Prince Harry’s settlement has been reached is likely to remain unknown however this case offers a clear demonstration of how even the most high-profile cases can be stopped in their tracks should parties take a pragmatic approach and consider the practicalities of a settlement.
Our commercial litigation solicitors are experts in advising litigants on settlement options and all forms of alternative dispute resolution, including mediation.
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