When facing litigation, many people view settlement as giving up or admitting defeat. This misconception can be costly, both financially and emotionally. The reality is that settling a legal dispute is often the most commercially sensible decision you can make, and understanding why can save you significant stress, time, and money.

The True Cost of Taking Legal Matters to Court

Any kind of litigation places considerable strain on everyone involved. At Complete Legal, we represent clients across a wide range of civil litigation matters, from will disputes to commercial and business litigation that ends up before the courts.

While we always approach each case with the skill and dedication needed to fight through to a final hearing, we strongly encourage our clients to consider settlement where it makes commercial sense. This isn’t about being weak or giving up on your rights – it’s about making smart decisions based on the realities of the legal system.

The Financial Reality of Litigation

Litigation comes with substantial costs that many people underestimate at the outset. Here’s what you can typically expect:

• Solicitor fees: $300-$400 per hour plus GST on the lower end of the scale
• Junior barrister costs: Similar rates to solicitors
• Senior barrister fees: Up to $1,000 per hour or more

These costs add up quickly. Litigation is inherently laborious, regardless of the type of claim. While some cases are more complex than others, it’s rare for legal costs not to reach tens of thousands of dollars – and in hard-fought litigation, costs often climb into the hundreds of thousands.

Each party typically pays their own legal costs throughout the process. Even if you win and obtain a costs order requiring the losing party to contribute to your legal expenses, you’ll usually only recover 60-70% of your actual costs. Full indemnity costs orders (requiring the other party to pay 100% of your costs) are uncommon.

The bottom line: Litigation will significantly impact your finances regardless of the outcome.

The Hidden Emotional and Mental Toll

Beyond the financial costs, litigation takes a serious mental and emotional toll on participants. This is particularly evident in personal disputes, such as challenges to a deceased person’s will, where parties’ relationships and personal conduct often come under intense scrutiny.

Commercial disputes aren’t immune from these pressures either. When your business or investment property is at stake – often representing your largest asset or primary livelihood – the stress can be overwhelming.

The Reality of Client Experience

We’ve worked with many clients who start their legal journey convinced they want to fight to the bitter end. However, our experience shows that this determination often diminishes as the process unfolds:

• Proceedings are formally commenced
• Parties must prepare detailed affidavits
• Mediation or settlement conferences reveal the strengths and weaknesses of each side
• The reality of preparing for a final hearing becomes apparent

This change in perspective isn’t a character flaw – it’s a natural response to the demands of major litigation. Most people don’t deal with serious legal disputes as part of their daily lives, so exposure to court litigation can be genuinely strenuous and testing.

Taking a Commercial Approach to Dispute Resolution

We always recommend that our clients consider their situation from a commercial perspective when deciding how to resolve a dispute. Sometimes litigation through to a final hearing is the only way to achieve a satisfactory result, and we’ll never pressure clients to accept a settlement they strongly oppose.

However, it’s our responsibility to ensure clients understand all available options and potential outcomes – the good, the bad, and the ugly.

When Settlement Makes Sense

A settlement can be the smart choice when:

• The costs of continued litigation outweigh the potential benefit of winning
• The outcome at trial carries significant uncertainty
• The emotional toll of continued litigation outweighs the potential vindication
• A reasonable compromise allows both parties to move forward
• Your time and energy could be better spent on other priorities

Getting Expert Legal Guidance

If you’re facing a legal dispute in NSW and need experienced guidance on whether to settle or proceed to court, our team can help you make an informed decision based on your specific circumstances.

Ready to discuss your legal matter with Penrith’s trusted legal team? Contact Complete Legal today to book a consultation. We’ll provide clear, practical advice to help you navigate your dispute with confidence and protect your interests every step of the way.