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Is it possible to settle Texas business litigation out of court?

On Behalf of | Apr 18, 2023 | Business Litigation

Business litigation is a complex and costly process that can involve multiple parties, claims and legal issues. Sometimes; however, the parties may prefer to avoid going to trial and instead seek a more efficient and amicable resolution of their dispute. In such cases, settling out of a Texas court may be an option.

Settling out of court

Settling out of court means that the parties agree to resolve their conflict without a judge or jury deciding the outcome. Instead, they negotiate the terms of a settlement agreement that satisfies their interests and needs. A settlement agreement is a legally binding contract that can include provisions, such as payment of damages, performance of obligations, release of claims, confidentiality clauses and dispute resolution mechanisms.

Saving time and money

Litigation can take months or even years to conclude and can involve significant expenses such as attorney fees, court costs, expert witnesses and discovery. Settling out of court can reduce or eliminate these costs and allow the parties to move on with their business sooner.

Reducing risk and uncertainty

Litigation can be unpredictable and risky as the outcome depends on the evidence, law, jury and the Texas judge. There is no guarantee that either party will prevail or obtain the desired relief. Settling out of court can give the parties more control over the result and avoid the possibility of an unfavorable verdict or appeal.

Preserving relationships and reputation

Litigation can be adversarial and stressful and can damage the parties’ relationships and reputation. Settling out of court can foster a more cooperative and respectful atmosphere and protect the parties’ privacy and goodwill.


Settling out of court usually requires the parties to make concessions and compromises on their interests and rights. The parties may not get everything they want or deserve and may have to accept less than what they could have obtained at trial. Settling out of court depends on the parties’ voluntary compliance with the agreement. If one party breaches or disputes the agreement, the other party may have to resort to litigation again to enforce it. This can undermine the benefits of settling out of court.

Settling out of court typically involves waiving any future claims arising from the same dispute. The parties may not be able to pursue further legal action if new facts or circumstances emerge or if they change their mind about the settlement.