A Settlement, a Verdict and a Judgment walk into a bar…

March 4th, 2010. By Kristine B

(Let me preface this by saying this isn’t a legal joke—more of a little vignette. My apologies to those of you “legal purists” out there…this is Pleading Ignorance and it’s for the rest of us lay folk.) Back to the story…

After a few drinks, a hot chick (I’m a woman, so I can write that) walks up; seems she’s looking for romance—and a husband.

She approaches the Verdict first. He’s game, but he has to ask his mother first—he’s a momma’s boy at heart and momma’s the judge. She doesn’t have time for that, so she heads over to the Judgment. They chat a bit, but then she realizes he may want to bail early on—he wants to keep his options open—and she’s wanting more of a final commitment—no chance of an appeal, so to speak. So she starts chatting up the Settlement. She likes that he sounds like he’s “settled” and he’s upfront about things—no baggage—he hasn’t been through the rigmarole. Yup, the Settlement’s her guy. She buys him a drink, and off they go into the sunset.

Love story though it may be, I use the above bit of fiction to describe three legal terms that are often used interchangeably—and incorrectly so: Settlement, Verdict and Judgment.

So let’s do some ‘splaining.

What is a Settlement?

You hear a lot about settlements because, hands down, they win the popularity contest when it comes to lawsuit outcomes. Why? A few reasons. First, they happen before anyone actually goes to trial—so you avoid the possibility of a case being dragged on and on as it goes through the courts. Secondly, as a settlement arises from negotiation, both parties must agree to the terms of the settlement—and that includes the dollar amount of the settlement and terms of the settlement such as whether or not the amount of the settlement is confidential. And third, a settlement is final—there’s no appeals process. So everyone can—happily or not—put the matter behind them, or at least try to.

FYI, in many states, parties in a lawsuit are required to go to a settlement conference just before the trial begins, in the hopes that a settlement can be reached before trial.

BTW, settlements do not usually make for dramatic movie or tv watching, which is why they are not often featured in movies or tv shows.

One major drug lawsuit that saw settlements was Fen-phen.

What is a Judgment?

A judgment is the final decision by a court in a lawsuit. In a lawsuit, for example, the judgment occurs when the judge issues a decision that resolves the conflict and determines the rights and the obligations of all parties in the lawsuit. (Unlike with settlements, this is usually the dramatic moment in the movie or tv show where the judge gives his ruling and bangs his gavel and the winning side erupts with tears of joy.)

Wait a minute! Did I just say “final”? That should mean the end of the road here folks, now shouldn’t it? Well…in actuality, a judgment might not finally resolve the conflict (remember, this is the guy who might not commit). The parties may have grounds to appeal a judgment—surely you’ve heard of someone being unhappy about a court decision and announcing that he plans to appeal the decision. Some lawsuits take years from start to end because of appeals and appeals of appeals and appeals of appeals of…you get the picture.

What is a Verdict?

A verdict is the decision a jury renders after a trial. A verdict must be accepted by the trial judge in order for it to be final. In most instances, verdicts are upheld by the trial judge, but the judge does have the discretion to set aside the verdict in certain circumstances. So this is the momma’s boy—he needs the “ok” of the judge. A verdict is different from a judgment because it comes from the jury and not the judge. (Keeping with our movie analogies, this is usually the dramatic moment when the judge looks at the jury and says, “Has the jury reached a verdict?” and the camera pans with the utmost of solemnity over to the foreman of the jury.)

In October, 2009, a jury returned a verdict that GlaxoSmithKline did not adequately warn patients about the risk of birth defects in babies who were exposed to Paxil prior to birth. Jurors reportedly took seven hours over the course of two days to reach its verdict.

Meanwhile, in a different lawsuit a woman won her lawsuit against Philip Morris, a tobacco manufacturer. The plaintiff was awarded $294 million in the verdict against Philip Morris.

So for my money, I’m probably a settlement type of gal—how ’bout you?

Tags: Judgment, Pleading Ignorance, Settlement, Verdict

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