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On the other hand let's add some realism of a different kind. Suppose the advice they are likely to have been given is that you won't be likely to win more than 40k. However the claim relates to something disreputable that would come out in court (maybe you were a whistleblower and they sidelined you and forced you to resign, after you tried to report some shady practices, or the case relates to sexism/racism/tolerance of bad or harassing behaviour, or boosting invoices and borderline accounting fraud), and you're pretty sure they would lose at least Sizeable Client X and probably suffer commercial and reputational backlash costing 600k revenues over the next 3 years whether they win or lose.

On the other hand let's change the nature of the case, but not its chances. Suppose the advice they are likely to have been given is that you won't be likely to win more than 40k. However the claim relates to something disreputable that would come out in court (maybe you were a whistleblower and they sidelined you and forced you to resign, after you tried to report some shady practices, or the case relates to sexism/racism/tolerance of bad or harassing behaviour, or boosting invoices and borderline accounting fraud), and you're pretty sure they would lose at least Sizeable Client X and probably suffer commercial and reputational backlash costing 600k revenues over the next 3 years whether they win or lose.

Especially in the UK (and perhaps there are similar rules in other countries: check!), you may be required to have made a reasonable attempt to settle before the hearing. If the amount you asked is not seen by the court as "reasonable", or is less than your eventual win, then you might be required to pay the legal costs the other side was forced to incur as a result of you seeking an inflated settlement.

Especially in the UK (and perhaps there are similar rules in other countries: check!), you may be required to have made a reasonable attempt to settle before the hearing. If the amount you asked is not seen by the court as "reasonable", or is more than your eventual win, then you might be required to pay the legal costs the other side was forced to incur as a result of you seeking an inflated settlement.

Their client now considers. You seem determined but perhaps could be coerced to pay less if they flash some money. Their legal insurance may not cover cover all of it if it goes to court. The lawyer will have told them that generally you don't want to go to a court case with less than 65-70% chance of a win.

Their client now considers. You seem determined but perhaps could be coerced to pay less if they flash some money. Their legal insurance may not cover cover all of it if it goes to court. The lawyer will have told them that generally they don't want to go to a court case if they have less than 65-70% chance of a win.