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this post was submitted on 18 Jul 2023
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No Stupid Questions
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No such thing. Ask away!
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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.