How Long Does It Take to Settle a Lawsuit?
If you've ever been mired in a legal quagmire, you know the frustrating, glacial pace at which the wheels of justice can turn. Once the decision is made to file a lawsuit and pursue litigation, one of the biggest looming questions is: how long until this gets resolved? Unfortunately, there's no easy one-size-fits-all answer that can apply to every single case. The timeline can vary dramatically depending on a constellation of factors.
In general, the more complex the issues, contentious the disputes, and adversarial the parties, the longer a lawsuit is likely to drag out before reaching settlement or trial verdict. Conversely, cases involving relatively straightforward claims, agreeable parties motivated to compromise, and clear paths to resolution will tend to move more quickly through the court system. But even seemingly simple disagreements can get bogged down in the bureaucracy, formalities and inefficiencies that plague our judicial process.
To better understand the wildly varying timelines, let's take a detailed look at the main phases of litigation and the key factors that influence how long each stage could last.
The Pleadings and Discovery Phases
After a lawsuit is officially filed with the court, the case kicks off with the pleadings phase. This involves the initial back-and-forth exchange where the plaintiff's complaint lays out the facts and legal arguments for why they are suing, and the defendant's answer admits or denies those claims while asserting any defenses or counterclaims.
In relatively straightforward cases with limited issues, just a couple of pleadings may be sufficient to clearly define the scope of the dispute. But in more complex commercial suits or cases with multiple parties, the pleadings stage could involve a dizzying array of claims, counterclaims, crossclaims, affirmative defenses and replies. If the pleadings become swamped in objections and motions to strike certain elements, this opening phase could quickly become protracted over several months before even getting into the meat of the case.
Once the pleadings are settled, the case then moves into what is often the lengthiest and most brutal phase: discovery. This is the process where each party aggressively seeks out all potentially relevant evidence and information from the opposition through various tools:
- Requests for Production of Documents
- Interrogatories (Written Questions)
- Requests for Admission
- Depositions of Parties and Witnesses
In a simple matter like an auto accident case, discovery may just involve exchanging some medical records, bills, and sworn statements about what happened. But in complex commercial litigation, the discovery process can resemble a root canal without anesthesia.
These cases may involve parties sparring over millions of pages of documents and emails, dozens of depositions spanning countless hours, and repeated motions to compel responses or limit/expand the scope of discovery. Major companies engaged in "scorched earth" legal battles have been known to send over 30 million pages of documents for review. Just processing and reviewing that amount of data can take over a year on its own.
Unsurprisingly, the sheer volume of discoverable information and number of depositions in complex cases tends to be the primary driver behind discovery delays that can stretch on indefinitely. If one party fails to cooperate, buries the other side in volumes of data, or engages in obstructionist or dilatory tactics, the discovery saga can easily consume over a year on the case timeline even before getting close to trial.
Settlement Negotiations Amidst the Fray
In the midst of the pleadings and discovery battles, the parties also engage in periodic settlement negotiations in an attempt to resolve the dispute without the costs and risks of going to trial. Ideally, these early settlement talks will help clarify points of compromise where the parties could find mutually agreeable terms to end the lawsuit relatively quickly - potentially just a few months after the case began.
However, in many lawsuits, the parties remain deeply entrenched in diametrically opposed positions with little appetite to make meaningful concessions during these preliminary negotiations. In such situations, settlement talks quickly hit an impasse, prompting the parties to revert back to the litigation trenches to continue the costly combat.
This cycle - of fruitless early settlement talks followed by a resumption of hostile skirmishes through pleadings and discovery - can prolong litigations indefinitely. As each side continues churning through time and money while making little progress toward resolution, the prospect of settlement can drift further and further out of reach.
That's not to say settlement eventually becomes impossible, but rather that it often takes the credible threat of an impending trial to finally catalyze productive negotiations that bring both parties into bargaining ranges within striking distance of a compromise.
As a looming trial date starts to appear on the horizon after years of litigation, the stakes intensify dramatically. Trial represents an all-or-nothing gambit where one party will emerge as the victorwhile the other suffers complete defeat after pouring millions into attorney's fees and costs. This increasingly unappealing prospect begins exerting immense pressure on both sides to find a settlement number that allows them to cut their losses, avoid catastrophic risks, and move on.
That's why a large percentage of cases that survive the gauntlet of endless discovery and pretrial battles tend to resolve in the final weeks and months leading up to a scheduled trial date. With the specters of trial costs and losing everything looming large, parties finally become seriously motivated to make reasonable concessions and find settlement terms both can accept, however reluctantly.
Pre-Trial Proceedings, Motions and Trial Delays
Of course, even if the parties remain unable to settle as trial approaches, a variety of pre-trial proceedings and motions must first be cleared before the case can realistically start being tried before a judge or jury. These pre-trial steps include:
- Motions for Summary Judgment
- Motions to Exclude or Admit Evidence
- Motions related to Expert Witnesses and Testimony
- Other Evidentiary Disputes
- Final Pre-Trial Hearings and Conferences
Again, the extent of these pre-trial proceedings can vary widely based on the complexity of the issues, volume of evidence, and specific disputes that may arise between adversaries committed to exploiting every possible legal maneuver and objection.
In straightforward cases where liability is relatively clear and there are minimal evidentiary or procedural quandaries, these pre-trial matters may only add a couple months at most to the timeline before an actual trial can begin.
But in cases fraught with novel legal questions, technical testimony from dueling experts, challenges to evidence, or a high volume of disputes and motions, these pre-trial hurdles can easily push an anticipated trial date back by over a year in some situations.
It's not at all uncommon for complex civil cases to get pushed off a court's docket repeatedly because the pre-trial motions are still being litigated. With court calendars already overcrowded, many judges are happy to avoid the commitment of a lengthy trial until they are fully assured all pre-trial loose ends are properly tied up.
The Trial and Appeal Process
If after all the maneuverings, motions, negotiations and delays the case somehow survives to make it all the way to an actual trial, the length of that trial itself can still span anywhere from a couple days for a simple matter to multiple months for a highly intricate case.
At trial, the parties will argue their claims and defenses through the presentation of testimony, evidence, experts and oral arguments over the course of:
- Jury Selection
- Opening Statements
- Witness Testimony and Cross-Examination
- Introduction of Documentary Evidence
- Closing Arguments
- Jury Deliberation and Verdict (if a jury trial)
The more parties, claims, witnesses, experts and evidence involved in a case, the longer this trial presentation phase could extend. While many trials last just a week or two, it's not unheard of for a complex legal battle to require over a month of court time to fully air all the relevant evidence and testimony.
And if you think making it through an entire trial is the finish line, think again. Because if the losing party remains unsatisfied with the verdict, they can then choose to pursue an appeal - sending the case up to the appellate court system for another lengthy stage.
The appeals process alone can tack on an additional 6 months to over a year while both sides brief their arguments about why the trial verdict should be upheld or overturned. Once all briefs are filed, the appeals court will take its own ample time to review the record, hold oral arguments, discuss, and ultimately issue a ruling affirming or reversing the original judgment.
What Does It All Add Up To?
So given all the interminable phases, inevitable delays, and potential roadblocks, what are we realistically looking at in terms of how long a "typical" lawsuit may take to resolve through settlement or trial verdict?
Unfortunately, despite the consistent and systemic delays inherent to our judicial system, the actual timelines can still vary wildly based on multiple factors:
According to the U.S. Department of Justice and Syracuse University, just over 3% of all federal civil cases are resolved in 6 months or less. The median time from filing to trial for a federal civil case is around 2 years.
For state court cases, the numbers show the median time for a civil lawsuit to resolve if it goes to trial is about 16 months. However, around 25% of civil cases take over 2 years from filing to reach final resolution.
One survey by a legal analytics company found that the overall average time to settle a civil lawsuit hovers around 15 months. But cases that went all the way to trial averaged a much lengthier 25.6 months from start to finish.
So while some lawsuits do manage to settle in under a year, the sobering reality is that most take at least 1-2 years to work their way through the court system from filing to resolution. And the more complex the case, the higher the likelihood it extends past the 2 or even 3-year mark before actually getting settled or reaching a verdict at trial.
Additionally, even once a settlement agreement is struck, it could still take weeks or months for all the final paperwork to be processed, court approvals obtained, and disbursement of settlement funds to actually land in the plaintiff's hands.
Clearly, filing a major lawsuit requiring any significant litigation is not a quick process by any stretch. The best advice is to mentally prepare for a long haul lasting a minimum of 1-2 years, and potentially much longer depending on the circumstances.
Pre-Settlement Funding: A Financial Lifeline for the Long Haul
Given the excruciatingly slow pace at which even the most airtight cases can plod along, one of the biggest concerns plaguing many plaintiffs is simply having the financial ability to withstand such a drawn-out process. Lawsuits can be extraordinarily expensive to litigate properly, with costs quickly spiraling into the six and seven-figure ranges for complex cases requiring extensive discovery, expert witnesses, and trial preparations.
When you combine those substantial monetary costs with the prospect of a key income earner being out of work for years while waiting for their day in court, the financial pressures can become untenable. Too often, deserving plaintiffs are forced to settle for lowball offers or abandon their cases entirely simply because they can no longer afford to continue financing the legal fight.
This unfortunate reality is what has driven the growth of the pre-settlement funding industry over the past couple decades. Pre-settlement funders provide cash advances to plaintiffs based on the expected value of their pending lawsuits. Also known as litigation financing, these non-recourse advances supply vital funds to help cover essential living expenses and legal costs while a case works its way through the courts.
Unlike a traditional loan that would need to be repaid regardless of the outcome, pre-settlement funding is recourse solely against any eventual settlement or award - meaning plaintiffs don't have repay a cent out of their own pocket if their case is ultimately unsuccessful. The pre-settlement funding firm only recoups its investment from the proceeds of a successful settlement or verdict on a predetermined percentage.
By taking advantage of pre-settlement funding, plaintiffs can essentially gain the financial runway needed to withstand a multi-year legal marathon until their case reaches the finish line. This prevents them from being forced to fold due to economic hardship or pressured into accepting an inadequate settlement they would otherwise have rejected.
For plaintiffs who have suffered clear damages deserving of rightful compensation, but lack the resources for the long battle to get there, pre-settlement funding can prove an invaluable lifeline. It allows them to stay the course, maintain crucial leverage during settlement negotiations, and fight for the full justice they deserve rather than being denied because of economic reality.
While landing a settlement can take years, having this type of litigation financing can ensure plaintiffs make it all the way to the eventual payoff without succumbing to the extreme pressures and demands of prolonged lawsuits.
The information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that You consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
Featured Articles
Understanding the Letter of Protection (LOP)
In the realm of personal injury law and medical treatment, the Letter of Protection (LOP) stands out as a pivotal document. It serves as a bridge between legal proceedings and healthcare, ensuring that injured parties receive the necessary medical care without the immediate burden of payment.
Can You Sue Someone With No Money?
Suing someone who appears to have no assets or income might seem like a futile effort. After all, the common saying, "You can't get blood from a stone," suggests that winning a lawsuit against a financially insolvent defendant may not result in any monetary compensation.
Typical Car Accident Settlement Amounts
Car accidents can happen when we least expect them, leaving us dealing with injuries, property damage, and unexpected expenses. If you've been involved in a car accident that wasn't your fault, you may be entitled to compensation through a settlement with the at-fault party's insurance company. However, determining a fair settlement amount can be challenging, as it depends on various factors. In this article, we'll explore typical car accident settlement amounts, both for accidents with injuries and those without, as well as discuss pre-settlement funding options.