Law Stack Exchange is a question and answer site for legal professionals, students, and others with experience or interest in law. It only takes a minute to sign up.
Sign up to join this community
In the news right now is Hulk Hogan settling with Gawker for $31 million. This is a significant drop from the original $140 million judgement. What motivations would Hogan have for accepting this settlement? Why wouldn't he just demand the full amount?
My first guess was that Gawker may just not be able to pay the $140 million, but even in that case wouldn't Hogan still get the $31 million that Gawker is able to pay?
Because of the appeals process. By settling now he:
Sometimes it's better to take a lesser amount than the judgment because the defendant can potentially declare bankruptcy and leave you with little or nothing, since you would not necessarily be the first in line to collect from liquidation of the defendant's assets.
There are two parts to getting money in a civil court case: (a) you must win the case. (b) you must force the other party to hand over the money.
If you won the case, but you think part (b) is difficult (like getting $140 million from someone who hasn't got it is a problem), then you take what you can get.
