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Lawsuit Settlements

Upon filing a plaint with the court and obtaining summons, the plaintiff goes ahead and serves the defendant with summon and a copy of the plaint. The defendant is required to either file a replying answer or proceed to file a motion in the same court to challenge the plaint.

At times the defendant agrees with the plaintiff's complaints and agrees to settle the matter out of court. The defendant will show his/her willingness to settle the matter out of court. This has to be put down in writing. The court registrar then gives both the plaintiff and the defendant the opportunity to pick a third person of their choice to help them in determining the matter out of court.

The third person is referred to as an arbitrator. The arbitrator is a qualified professional in his/her field of expertise and is recognised in law and by the court. The arbitrator will go ahead and organize for hearing sessions in which each party will present its views. After a common agreement has been reached, including payment details and schedule if applicable, documents are prepared and both parties sign the documents.

The arbitrator thereafter files such agreement with the court to give them the legal backing required just in case either party fails to meet its part of the bargain. Such documents become property of the court and are assumed to have been made by that court.

The provision for out of court settlement is commonly referred to as alternative dispute resolution. Several countries have made this provision compulsory in all civil cases as the first step of the litigation process. It is only when both parties cannot reach an amicable agreement that the dispute between them goes to the court for proper trial.

Regardless of whether the dispute is settled through the court after a trial or through an arbitrator, the final agreement has to be fulfilled by the concerned party. The plaintiff will be barred from raising the same matter again in another court against the same defendant. This prevents any possibility of the plaintiff filing another plaint in a different jurisdiction within a national jurisdiction. If the judgement is in favour of the plaintiff, the defendant must comply with the directions given in the judgment.

If the defendant is required to pay the plaintiff a certain sum of money within a given time and he/she fails to do so, the plaintiff can return to the same court and state so. In this case the court may order that the defendants' property or properties within the court's jurisdiction be attached. This is where the services of auctioneers and court bailiffs come in.

If all the defendants' assets are in another jurisdiction, the plaintiff's attorney will be forced to file the court's judgment and order with another court in a jurisdiction in which the defendant's assets are situated. It is the duty of the second court to enforce the judgment and order of the other court. Through this arrangement, a plaintiff is always assured that he/she will get justice.