Dallas Employment Lawyer Blog
Dallas Employment Trial Lawyer Harjeen Zibari
I often hear people say things like, “My [insert relation] sued for this, and they won.” As a lawyer, my ears perk up because I think this means that I have some good case law to look at, or a different kind fact pattern to be on the look at for when selecting cases. However, I soon learned that when people say this to me, they’re usually referring to settlements. And I’m glad that the person was so happy with the outcome that they describe it as a win. But, I’m a lawyer and I’m going to be persnickety: a settlement is different than a verdict, although both bring closure, they’re very different. I’m not even saying one is better than the other. But, it’s an important distinction to make, especially when it comes to confidentiality concerns and how the resolution can be discussed with others.
This blog discusses the difference between a settlement and a verdict.
What is a Verdict?
A verdict is a formal decision rendered after a full trial. This is typically handed down by a jury, or by the judge herself in some cases. It can also be rendered by an arbitrator if the case is subject to arbitration, which I’ve discussed in other blogs. Generally speaking, a trial is the final showdown where both sides present their evidence, examine and cross-examine witnesses, and make legal arguments in court. At the end of that process, the fact-finder determines whether the defendant violated the law and, if so, what damages the employee is entitled to receive.
Verdicts in Texas employment cases can include awards for lost wages, future lost earnings, compensatory damages for emotional distress, and in certain cases, punitive damages meant to punish particularly egregious employer conduct. The Texas Commission on Human Rights Act and federal laws like Title VII of the Civil Rights Act both allow for various categories of damages, though caps apply depending on the size of the employer and the nature of the claim. For example, in a sex discrimination case against an employer with thousands of employers, those damages are capped at $300,000 (this is the maximum damage cap in a Title VII case).
The most significant advantage of going to verdict is the potential for a larger award, particularly when punitive damages are available. When you hear about employment verdicts in the millions of dollars, those cases almost always involve intentional race discrimination claims, which are not subject to damage caps under 42 U.S.C. § 1981. Verdicts also create a public record, which some employees find meaningful when they want accountability rather than simply compensation. However, as discussed in my arbitration blog, arbitration is not public, so that verdict would not be public information, but it still gives a person their day in court, so to speak.
Just like anything, there are drawbacks to a trial. I am a trial lawyer and I love trying cases. But, not every case is good for a trial, and serious considerations have to be made when evaluating whether a case should be taken through to trial. Trials are expensive, emotionally taxing, and time-consuming. Texas employment cases can take years to reach a courtroom, and the outcome is never guaranteed. Even a strong case can be lost at trial due to witness credibility issues, evidentiary rulings, or juror sympathy. A verdict can also be appealed, meaning the resolution you thought you had may be delayed further.
Most cases settle, which brings us to the next portion.
What Is a Settlement?
Only about 5% of civil cases nationwide make it to trial. Other cases are voluntarily dismissed by the Plaintiff, or dismissed by the judge after the defendant moves for specific types of dismissal or summary judgment. Summary judgment is a particular roadblock when it comes to Plaintiff’s employment law in Texas.
However, many cases settle. If a lawyer takes your case (whatever case that may be), and you reach a resolution, it will most likely be because of a settlement. That is just the way our legal system works.
In an employment law context, a settlement is a voluntary agreement between the employee and the employer to resolve the dispute outside of a courtroom decision. Settlements can happen at nearly any stage of a case, from the very first letter the employee’s lawyer sends to the employer, all the way through trial itself. Settlements can happen in the hallway right after jury selection or after a day of arguments in trial.
In exchange for a sum of money and sometimes other terms like a neutral reference, the employee typically agrees to release all claims against the employer. That release is a critical component. Once signed, the employee generally cannot bring further legal action related to the same conduct, which makes it essential to understand exactly what rights are being given up before agreeing to any deal.
Settlements offer several meaningful advantages. They provide certainty. Rather than trying your hand with a final verdict, both sides agree on a defined outcome. They are typically faster than going to trial, which can preserve the employee’s financial stability. They are also confidential in most cases, which some employees prefer, particularly if they want to move on professionally without their case becoming part of the public record. (So, if your neighbor is telling everyone she ‘won’ her case against a company, and it was a settlement, uh oh! She might be breaching that agreement already.) Settlements also typically come with a non-admission of fault from either side, which the employer tends to like.
The trade-off is that settlements almost always involve compromise. After all, you’re settling. The old saying is, the Plaintiff takes less than they want and the Defendant pays more than they want. But, in order to have some sort of closure, many parties opt to settle.
Choosing the Right Path
Deciding whether to settle your case or pursue a verdict is a case-specific, Plaintiff-specific inquiry. Your attorney should help guide you through this decision, presenting all the pros and cons of each decision. I help people every single day with this choice, so feel free to contact me in Dallas or one of my colleagues in Austin or Houston today.