Only a small percentage of business litigation cases in California ever result in a court trial. The vast majority of California business legal disputes are settled out of court through agreement prior to any court intercession. Negotiations resulting in a settlement are less costly and take far less time than litigation, and are generally in the interests of all parties involved.
Unfortunately, the trend of California business disputes is beginning to shift away from settlement, and more and more often, are winding up in costly and timely courtroom litigation. There are a couple reasons for this but a primary one stands out. California business dispute settlements have historically been sealed and kept private, but with the media now a 24-hour a day operation, this propensity has become virtually impossible to continue.
Subsequently, attorney’s for businesses are becoming increasingly less likely to agree to settlement in the interest of the parties involved in a specific business dispute to avoid a new precedent from being set which encourages a snowball effect of new lawsuits, bogging down an already overwhelmed and financially strapped California court system.
With the U.S. economy in shambles, society has become progressively more litigious, and an expectancy of litigation in a California courtroom continues to permeate the anticipations of businesses involved in legal dispute. Ultimately, without reform of some kind, this trend will continue to spiral out of control in California, costing all the parties involved more time and more money.