This is an estimate of how you might expect your case to come out if you do not settle it. You might say that any settlement that improves on this figure is a better choice than continuing on with the case.
Of course, there are other factors to consider:
- Decision trees necessarily rely on rough estimates about future events. The percentages and dollar figures are not exact.
- Decision trees do not consider the full range of possible outcomes that can affect settlement decisions.
- Decision trees do not take into account other factors that you may consider important in making settlement decisions. These include things such as each party’s aversion to risk and financial condition, the time and inconvenience of litigation, and, of course, emotional considerations on both sides.
