Do Most Cases Settle Before Trial? Here’s What You Should Know!

Wondering how many cases settle before trial? You're not alone. This is one of the most common questions people ask personal injury lawyers. The reality is that the vast majority of civil lawsuits are resolved out of court, long before a jury is ever involved.

We’ll explore the percentage of civil cases that settle before trial, explain why most personal injury cases are settled instead of tried, and help you understand what to expect if your claim does proceed to court.

Why Do Most Personal Injury Cases Settle Before Trial?

So, why are most civil cases settled before trial? It often comes down to five key reasons: cost, time, uncertainty, privacy, and emotional burden. Let’s have a more detailed look at these factors.

Cost Considerations

Litigation expenses increase dramatically when a case goes to trial. These costs include:

• Court filing fees
• Deposition expenses
• Expert witness fees
• Exhibit preparation
• Attorney time for trial preparation and attendance

When a reasonable settlement offer is close to what might be awarded at trial, both sides usually prefer to avoid additional costs.

Time Efficiency

The trial process is often lengthy and can extend the resolution of a case by months or even years. In Texas, the court system's backlog means that scheduling a jury trial may involve considerable delays. Additionally, appeals following a trial verdict can further extend the timeline.

A settlement allows parties to resolve their dispute more quickly, providing compensation to injured plaintiffs sooner rather than later. This is particularly important for clients dealing with medical bills and lost wages following an injury.

Certainty vs. Risk

Perhaps the most significant factor driving settlements is the uncertainty of trial outcomes. When a jury decides a case, neither side can predict the verdict with absolute certainty. Even cases with strong evidence carry risk when presented to jurors who may interpret facts differently than anticipated.

By contrast, a settlement provides a guaranteed result. For plaintiffs, accepting a settlement means securing definite compensation rather than risking an unfavorable verdict. For defendants, a settlement eliminates the possibility of a much larger jury award.

Privacy Considerations

Court proceedings become part of the public record, while settlement agreements can include confidentiality provisions. For businesses and individuals concerned about reputation, the privacy afforded by settlement may be valuable.

In Texas, where business interests often intersect with litigation, this privacy consideration frequently influences settlement decisions.

Emotional Burden

Trials can be emotionally taxing for all parties involved. Plaintiffs must relive traumatic experiences through testimony, face cross-examination, and endure the stress of courtroom proceedings. Defendants may face public scrutiny and the anxiety of an uncertain outcome.

A settlement allows both sides to avoid these emotional burdens and move forward without the additional stress of a trial.

What Percentage of Civil Cases Settle Before Trial?

The percentage of cases that settle before trial is incredibly high, both nationwide and in Texas.

National Statistics

According to data from the U.S. Department of Justice, approximately 95-96% of civil cases settle before trial. This means that only about 4-5% of civil lawsuits ultimately reach the trial phase. For personal injury cases specifically, the settlement rate is even higher, with some studies indicating that 97-98% resolve without trial.

Texas Settlement Rates

In Texas courts, the pattern is similar to national trends. The Texas Office of Court Administration reports that less than 3% of civil lawsuits filed in the state reach a jury verdict. The rest are either dismissed or resolved through settlement. This means the percentage of civil cases that settle before trial in Texas mirrors — or exceeds — national averages.

When Do Personal Injury Cases Settle?

When cases do settle, the timing varies considerably:

• Early settlements: Some cases resolve shortly after filing, especially when liability is clear.
• Pre-discovery settlements: Resolution may occur before the expensive discovery process begins.
• Post-discovery settlements: Many cases settle after evidence exchange clarifies the strengths and weaknesses of each side's position.
• Pre-trial settlements: A significant number of cases settle in the weeks or days before the scheduled trial date.

As the trial date approaches, settlement discussions often intensify as both parties face the imminent reality of presenting their case to a jury.

Do Insurers Want to Go to Trial?

Usually, no. Insurance companies play a significant role in the settlement process, particularly in personal injury cases. Understanding their motivation helps explain settlement dynamics.

Why Insurers Settle

Contrary to what many believe, insurance companies generally prefer to avoid trials for several reasons:

• Financial considerations: The expense of defending a case through trial often exceeds the cost of a reasonable settlement. Beyond attorney fees, insurers must consider expert witness costs, which can be substantial in complex cases.
• Predictability: Insurance business models rely on risk assessment and predictability. Settlements provide certainty about the payout amount, while jury verdicts introduce unpredictability that challenges financial planning.
• Reputation management: Insurers may prefer to resolve claims through settlement rather than risk negative publicity from trial proceedings, particularly in cases involving serious injuries or sympathetic plaintiffs.

When Insurers Choose Trial

Despite their general preference to settle cases if possible, insurance companies may elect to proceed to trial under certain circumstances:

• When they believe no liability exists.
• When settlement demands significantly exceed their assessment of a case’s value.
• When they suspect fraud.
• When they want to establish a precedent for similar future cases.

In Texas, where tort reform laws limit certain types of damages, insurers sometimes risk trial when they believe statutory caps will apply.

When a Trial Becomes More Likely

While the majority of cases settle, understanding when trials become more likely helps clients prepare for this possibility. Certain case characteristics make a trial more likely:

• Disputed liability: When the parties fundamentally disagree about who bears responsibility for the incident, settlement becomes more difficult.
• Significant damages: Cases involving catastrophic injuries or wrongful death often have wider valuation gaps, making agreement harder to reach.
• Complex legal issues: Cases presenting novel legal questions or requiring interpretation of unsettled law may need judicial determination.
• Multiple parties: When numerous defendants are involved, coordinating a settlement among all parties can be challenging, increasing the likelihood of a trial.
• Principle-based disputes: Sometimes parties proceed to trial based on principle rather than financial calculations.

What Happens If Your Case Goes to Trial in Texas?

For cases that do reach trial in Texas, the process typically follows these stages:

• Motion practice: Either side can file motions that can affect what evidence is presented.
• Jury selection: The voir dire process identifies and selects jurors from a larger pool.
• Opening statements: Attorneys outline their case theories to the jury.
• Plaintiff's case: The injured party presents evidence, including documents, testimony, and expert opinions.
• Defendant's case: The defense offers contradictory evidence and alternative explanations.
• Closing arguments: Attorneys summarize evidence and request specific outcomes.
• Jury deliberation: Jurors consider evidence and apply the law as instructed by the judge.
• Verdict: The jury announces its decision regarding liability and damages.

Texas has specific procedural rules that govern this process, including requirements for expert testimony and evidence presentation that experienced litigation attorneys must navigate. Omar Ochoa Law Firm can provide the guidance and advocacy you need to protect your rights.

Let's Explore Your Settlement Possibilities!

Whether your case ultimately settles or proceeds to trial, our attorneys’ jobs are to provide clear guidance about the strengths and weaknesses of your case, explain the risks involved with different approaches, and implement your decisions effectively.

If you’ve been seriously injured in Texas, contact us to discuss your options. Our Omar Ochoa Law Firm team will help you understand whether settlement or trial best serves your specific situation and work diligently to achieve the most favorable outcome possible.