Why Do Lawyers Want to Settle Out of Court? The Real Reasons

Last reviewed: October 6, 2026. This article is general information, not legal advice. Professional conduct rules and court procedures vary by state, so ask your own lawyer about your case.

If your lawyer keeps bringing up settlement, you might wonder whose side they're on. Wouldn't a trial get you your day in court, and maybe more money? It's a reasonable question, and a good lawyer should be happy to answer it. Here's what's really behind the advice.

Short answer: why do lawyers want to settle out of court? Mostly because a settlement trades an uncertain outcome for a certain one. Trials are expensive, slow, public and risky, and even a win can be appealed. Settling gives you a known result, sooner, with less cost and stress. But the decision to settle is legally yours, not your lawyer's.

The main reasons lawyers recommend settling

1. Certainty

A jury can surprise everyone. Witnesses forget things, evidence gets excluded, and jurors weigh pain and fault differently. A settlement locks in a number. For many clients, a guaranteed amount is worth more than a chance at a bigger one.

2. Cost

Trials are expensive. Expert witnesses, depositions, exhibits, court reporters and the many hours of preparation all add up. In a contingency case, those costs are usually repaid out of your recovery, so a long trial can shrink what you take home even if you win. Our guide to what percentage a lawyer gets in a settlement explains how fees and costs come out.

3. Time

Getting to trial can take years. A Bureau of Justice Statistics study of state court trials in 2005 found that, on average, cases took 26 months from filing to a jury verdict and 20 months to a bench trial decision. That's time you're waiting for money you may need now.

4. Appeals

Winning at trial isn't always the end. The losing side can often appeal, which can delay payment, and an appeal can occasionally reverse or reduce the result. A settlement usually ends the case for good, because both sides give up further claims and appeals.

5. Privacy

Trials and most court filings are public. A settlement can be kept more private, and agreements sometimes include confidentiality terms (some states limit those in certain kinds of cases). Separately, Federal Rule of Evidence 408 generally prevents settlement offers and negotiations from being used to prove or disprove the claim, which lets both sides talk openly.

6. Stress and control

Testifying, being cross-examined and waiting for a verdict is hard. Settling lets you shape the outcome, including payment timing and terms, instead of handing the decision to strangers.

How rare are trials, really?

Very rare. In the BJS study, among jurisdictions that could report totals, "trials collectively accounted for about 3% of all tort, contract, and real property dispositions in general jurisdiction courts" in 2005. That data is older, but it shows how most civil cases end: through settlement, dismissal or other resolution, not a verdict.

Courts encourage this too. Federal judges hold pretrial conferences in part to facilitate settlement, and each federal district court must require litigants to consider alternative dispute resolution such as mediation.

Are a lawyer's incentives always aligned with yours?

Mostly, but not perfectly, and it's fine to ask about it.

• Contingency fee lawyers get paid a share of your recovery, so a larger recovery helps them too. But a trial costs them much more time and they often advance the costs, so a quick, fair settlement can be attractive.
• Hourly lawyers are paid for time, so longer litigation means larger bills for you.

A good lawyer explains the recommendation in plain numbers: the offer, the realistic range at trial, the costs to get there, the time involved and what you'd net in each case. If you can't get a straight answer, you're allowed to get a second opinion, and in some situations to change lawyers before settlement.

When going to trial can make sense

• The offers are well below what the evidence supports.
• Fault is clear and the damages are well documented.
• The other side isn't negotiating in good faith.
• You want a public decision on an important issue.

Trial isn't wrong; it's just a bigger bet. The key is making that choice with full information.

Sources

• ABA Model Rule of Professional Conduct 1.2: American Bar Association
• Bureau of Justice Statistics, Civil Bench and Jury Trials in State Courts, 2005 (Langton and Cohen, 2008): bjs.ojp.gov
• Federal Rule of Evidence 408 (compromise offers and negotiations): Cornell LII
• Federal Rule of Civil Procedure 16 (pretrial conferences): Cornell LII
• 28 U.S.C. § 652 (alternative dispute resolution in district courts): Cornell LII