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Out-of-court settlements save money and time


We don't always agree with the actions of the N.H. Legislature, but in the case of the House vote to move House Bill 143 forward, we think the right decision was made.

The bill defines the term "party" or "parties" to mean only those individuals or entities who are plaintiffs or defendants in civil damages lawsuits when the jury or the court is determining the proper apportionment of fault. The bill states, "Any individual or entity who was a plaintiff or defendant, but who has settled or been dismissed prior to the apportionment of fault, shall not be considered a party."

The N.H. Municipal Association, several chambers of commerce -- including Portsmouth's -- and a variety of trade organizations opposed the legislation on the grounds that some companies, municipalities or individuals who choose to go to court could wind up being assessed damages disproportionate to their involvement in the negligence. They also argued that plaintiffs could manipulate the system by letting those with shallow pockets or small insurance policies off the hook through settlements, while exacting inordinate damages from those with deep pockets and large insurance packages through the courts.

That certainly could be the case, but we simply don't believe negating the incentive to settle disputes outside the courtroom is worth the possibility that some entity would have to absorb more costs than may be fair.

In fact, passing this legislation sends the message that settlements are, indeed, preferable to pursuing court battles in nearly every civil negligence suit.

Court battles are costly, not only to those involved, but to taxpayers who fund the court system; they clog the courts with cases that could be settled reasonably without all the fuss; and they often drag on for years until the plaintiffs are dead or too old to benefit from the cash verdicts.

The House Judiciary Committee felt so strongly that HB 143 was the right thing to do that it recommended House passage by a 7-1 vote. The House chose to concur, but the bill faces a perhaps more difficult battle in the Senate because its opponents are now organized to fight it.

We believe the state Supreme Court made the wrong decision in allowing defendants who have reached settlements with plaintiffs to be drawn back into the legal fray, and we support the proposed legislation that will correct that error.

-- The Rockingham News

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