To understand settlement of litigation from a public policy perspective, it is necessary to know what constitutes a “consideration” in a contract. This means that each party must receive some benefit from the arrangement in order to agree to settle a lawsuit. In addition, each party must agree to the settlement of litigation of their own free will. In other words, a settlement must provide full redress for discriminatory practices and minimize the chances of future recurrences.
The Effectiveness of Settlement Programs
The study began by developing a basic model of prototypical litigation and its relationship to settlement. In this model, private and public interests conflict over the scope and substantive content of a precedent. The settlement, in turn, affects the path-dependence and substantive content of the precedent. Consequently, the model has significant public policy implications. To understand how settlement affects the public policy of litigation, it is important to understand what factors affect the effectiveness of settlement programs.
Moreover, mediation has a significant effect on the policy arena. With more institutions turning to mediation, questions of consensual decision-making are being raised. These questions are particularly pertinent when two major settlements occur in New Jersey. Both settlements highlight the importance of negotiated settlements in public policy. As a result, mediation can help advance these goals. The Commission encourages parties to craft their settlement offers with investor protection in mind and to be creative and flexible when crafting their offers.