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Joined 1 year ago
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Cake day: July 11th, 2023

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  • Other people have covered the main reasons, which are time and expense. I will just add:

    • Lawsuits are public, and a lot of dirty laundry can get aired. They have the potential to be embarrassing for both sides.

    • They are also stressful, particularly if you are cross-examined which must be an awful experience.

    • Finally, they are risky: even if you think you have a very solid case, there is always a significant chance that the judge will rule against you on the day.

    Basically litigation is a bad experience, whether you are plaintiff or defendant, corporate or individual, right or wrong. So both parties have a strong incentive to settle.