Describe the considerations for employers and employees in deciding whether or not to settle a case prior to a hearing.

What will be an ideal response?


All of the parties to a workers’ compensation claim will spend some time evaluating the possibility of settling the case before taking it to a full hearing. The worker might wish to settle rather than risk the possibility of receiving no award, or, more likely, a substantially reduced award after a hearing. The employer and the employer’s insurer will consider settling the case prior to a hearing to avoid the possibility of being saddled with a heavy award. But there are other factors for the parties to consider than the possible award amount. The employer and employer’s insurer might also consider the costs involved in litigating the claim. Attorneys who represent insurance companies and employers routinely bill by the hour and are not paid on a contingency fee basis. They will be paid whether the employer and insurer win the case or not.
Some law firms have very high hourly rates and a claim that lingers for months could easily rack up enormous legal fees.

Legal Studies & Paralegal

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What will be an ideal response?

Legal Studies & Paralegal