“Vanishing Trials” Crisis: Why 98% of Cases Now Settle Before Court

Published on January 2, 2025

by Jonathan Ringel

The legal system is built on the foundation of trials. The idea that justice can only be served through a courtroom battle of wits, evidence, and arguments is what makes the justice system a cornerstone of society. However, in recent years, there has been a shift in this ideology. It’s been dubbed the “Vanishing Trials” crisis. This phenomenon refers to the rapid decrease in the number of trials taking place in courts across the United States. In fact, studies have shown that 98% of cases now settle before stepping foot in a courtroom. This begs the question, why are trials disappearing and what does it mean for the justice system as we know it?“Vanishing Trials” Crisis: Why 98% of Cases Now Settle Before Court

The rise of settlements

In the past, when a dispute arose, the typical course of action would be to file a lawsuit and proceed to trial. However, there has been a significant increase in the use of alternative dispute resolution methods, such as mediation and arbitration, which has led to a decline in traditional courtroom trials. These methods offer a more efficient and less expensive way of resolving conflicts, leading to a higher rate of settlements.

Settlements also offer greater flexibility for all parties involved. It allows them to negotiate and come to a mutually beneficial agreement, rather than being bound to the rigid rules and regulations of a trial. This can also result in a more favorable outcome for both parties, as a trial can often leave one side feeling unsatisfied with the decision.

The cost of going to trial

Trials can be a lengthy and expensive process. Not only do they require a significant amount of time and resources from attorneys, but there are also court fees, filing fees, and other expenses that can quickly add up. This can be a huge deterrent for individuals and businesses, especially when there is no guarantee of a favorable outcome. Settling out of court allows parties to avoid these high costs and save both time and money.

Furthermore, with the rise of litigation funding, plaintiffs are under immense pressure to settle quickly. Litigation funders provide the financial backing for lawsuits in exchange for a portion of the settlement or judgment in the case. This can put a strain on the plaintiffs to settle for a lower amount than they may have been entitled to in order to secure funding and cover legal costs.

The role of technology

The advancements in technology have also played a significant role in the decline of trials. With the rise of e-discovery, the process of gathering, reviewing, and sharing electronic evidence, trials have become increasingly complex and lengthy. This has resulted in more cases settling before reaching the courtroom, as the cost and time involved in preparing for trial can be daunting.

The use of social media and other online platforms has also made it easier to gather evidence and build a case, further prompting parties to settle before trial. Additionally, with the ability to easily access information and data, juries are becoming more educated and less likely to be swayed by emotional arguments, making it even more challenging to win a case in front of a jury.

The future of the justice system

As the number of trials continues to decrease, the justice system is being forced to adapt. Courts are now turning to technology to streamline the trial process and expedite settlement negotiations. Furthermore, alternative dispute resolution methods are being embraced and encouraged by courts as a more efficient and effective way of resolving disputes.

However, the disappearance of trials is not without consequences. With fewer trials, there is a decrease in published legal opinions, which serve as a basis for future cases and legal arguments. This could potentially lead to a lack of consistency in the law and an increase in out-of-court settlements based on previous decisions rather than the individual merits of a case.

Conclusion

The “Vanishing Trials” crisis is a complex issue with many contributing factors. While settlements offer many benefits, the decline in trials raises concerns and challenges for the justice system. As technology continues to advance and alternative dispute resolution methods become more prevalent, it is vital for courts to strike a balance between promoting settlements and preserving the fundamental principles of justice. Only time will tell if this shift in the legal landscape will bring positive changes or create a void in the justice system as we know it.