KEY TAKEAWAYS
Should my Texas business settle a lawsuit or go to court?
Many Texas business disputes settle before trial, but the best choice depends on your goals, the strength of your case, potential costs, confidentiality concerns, and whether the other party is negotiating in good faith. Settling can save time and money, while going to court may be necessary for significant losses, precedent-setting, or enforcing your rights.
What to Consider Before Settling or Litigating a Business Dispute
- Cost vs. Potential Recovery: Compare litigation expenses to the expected outcome.
- Confidentiality: Settlements can keep sensitive business information private.
- Business Relationships: Consider the impact on clients, partners, or vendors.
- Case Strength: Assess whether facts or legal claims clearly support your position.
- Timeline: Litigation can take months or years; settlement can be faster.
- Opponent’s Willingness: Courts may be necessary if the other side won’t negotiate.
- Strategic Goals: Decide whether speed, vindication, or precedent is most important.
- Insurance Coverage: Check if legal fees or settlements are covered.
- Business Continuity: Plan for potential disruptions to operations or reputation.
In Texas, business disputes are as common as cattle on the range. Whether you’re running a Houston tech startup, a family-owned construction firm, or a retail franchise in Dallas, chances are you’ll face a serious legal conflict at some point. When that day comes, the question becomes: should I settle or go to court?
You want to protect your time, money, and reputation, but the right answer isn’t always obvious. At The Vastine Law Firm, PLLC, we’ll guide you through practical considerations and strategies to help make the best decision for your business when faced with a lawsuit.
What Does It Mean to Settle a Lawsuit?
Before deciding, it’s essential to understand what it means to settle a lawsuit. In simple terms, a settlement is an agreement reached outside of court. Both parties agree to resolve the dispute without waiting for a judge or jury to decide the outcome. The resolution often involves a payment or a behavior change.
Settlements can happen at any time. An issue can settle before a case is filed, during discovery, or even on the eve of trial. They usually involve some compromise but allow the parties to keep greater control over timing, cost, and confidentiality.
Do Most Cases Settle Before Trial?
Many of our clients ask, Do most cases settle before trial? The answer is yes. In Texas and nationwide, most civil lawsuits never make it to trial. Under state policy, courts promote early settlement through mediation and other forms of alternative dispute resolution. Judges often refer cases to mediation before trial, and many counties hold “settlement weeks” to help parties resolve disputes outside of court.
Settling early can relieve pressure on the courts and help businesses:
- Avoid lengthy litigation,
- Save significant attorney’s fees and court costs,
- Keep disputes private, and
- Preserve valuable business relationships.
But settling isn’t always the right move. Some disputes need to be heard in court, especially when the stakes are high or the other side refuses to be reasonable.
Key Signs It May Be Better to Settle
Every case is different, but there are certain situations where settlement is a smart business move. If any of the following apply, settling may be in your best interest:
- The cost of litigation outweighs the potential recovery;
- You want to keep sensitive information confidential;
- The dispute involves a valued customer, vendor, or business partner;
- The facts or law are not clearly on your side; or
- You need a fast resolution to move forward.
It’s not about giving up; it’s about choosing the outcome that will protect your business in the long term.
When Going to Court May Be Worth It
In some situations, walking away or compromising isn’t an option. Litigation may be the right move when:
- You need to enforce your legal rights and set a precedent,
- The other party refuses to negotiate in good faith,
- The dispute involves significant financial losses or reputational harm,
- You’ve exhausted all alternative resolution options, or
- A court ruling is necessary to clarify an agreement or defend your business model.
Going to court can offer clarity, justice, and closure, but it comes with a higher risk and longer timelines.
Strategic Questions to Ask Before You Decide
Before making a final decision, ask yourself:
- What are my business priorities right now, speed or vindication?
- How will this impact my operations, reputation, or future deals?
- Am I dealing with a reasonable opponent?
- Can I afford the time and financial cost of a trial?
- What outcome do I actually want, and is that outcome possible through settlement?
Another question is, How long does it take to litigate a case? Timelines to resolve disputes in Texas can vary widely, but many business lawsuits can last from several months to a few years. Be sure to weigh whether that timeline fits your business goals.
Answering these questions with your attorney can help you craft the best plan for your business.
Practical Tips for Either Path
Regardless of whether you settle or go to trial, you can take steps to protect your business. Here are a few strategies that apply in both scenarios:
- Get organized early. Keep records of contracts, emails, and any communications related to the dispute.
- Work with your attorney regularly. Provide updates, answer questions, and stay engaged to avoid delays or missed opportunities.
- Keep the long view in mind. Whether settling or taking the dispute to court, focus on outcomes that align with your business goals.
- Review your insurance coverage. See if legal costs or settlements might be covered.
- Plan for business continuity. Identify how the dispute could impact operations, staffing, or client relationships and prepare contingency plans.
Practical planning now can save you time, money, and stress down the line, whether you settle or take your case to trial.
Why Choose The Vastine Law Firm, PLLC for Your Business Disputes
Still wondering, should I settle or go to court? The Vastine Law Firm, PLLC, can help you find the right path forward. Led by Scott K. Vastine, a seasoned Houston business litigator and former General Counsel of a $300M real estate investment firm, our team brings courtroom experience and business savvy to every case.
We’ve helped Texas companies resolve complex contract, employment, and commercial lease disputes through smart settlement and aggressive litigation. We’ve secured major courtroom victories and negotiated favorable resolutions in high-stakes disputes involving trade secrets, real estate, and fraud.
What sets us apart:
- Over 15 years of focused business litigation experience,
- A strategic, customized approach to each case,
- Deep roots in Houston’s business and legal communities, and
- Clear communication from start to finish.
Our team can help you make a confident, informed decision and fight to protect what you’ve built.
Contact Us to Resolve Your Business Dispute
Whether exploring settlement or preparing for trial, The Vastine Law Firm, PLLC can help protect your interests. We serve businesses across Texas with forward-thinking legal strategies and honest, straightforward advice.
Reach out today to schedule a consultation with a trusted business litigation attorney to resolve your business dispute.
