Tag out of court settlement
A "tag out" of court settlement refers to a situation where a party to a lawsuit agrees to settle the case without going to trial, and the settlement is reached through a process called "tagging out" or "tagging off" the case.
In a tag out, the parties agree to settle the case by exchanging a "tag" or a "tag-off" document, which is a written agreement that outlines the terms of the settlement. This document is typically signed by both parties and their attorneys, and it serves as a binding agreement to settle the case.
The tag out process is often used in cases where the parties are close to reaching a settlement, but need a formal agreement to confirm the terms of the settlement. It is also used in cases where the parties want to avoid the uncertainty and risk of going to trial.
The benefits of a tag out settlement include:
- Avoidance of trial: By settling the case through a tag out, the parties can avoid the uncertainty and risk of going to trial.
- Control over the outcome: A tag out settlement allows the parties to control the outcome of the case, rather than leaving it up to a judge or jury.
- Cost savings: A tag out settlement can be less expensive than going to trial, as it avoids the costs associated with preparing for and conducting a trial.
- Speed: A tag out settlement can be reached quickly, as it does not require the same level of preparation and negotiation as a trial.
However, a tag out settlement may not be suitable for every case. For example, if one party is not satisfied with the proposed settlement, they may choose to go to trial instead. Additionally, a tag out settlement may not be binding if one party fails to comply with the terms of the agreement.
Overall, a tag out settlement can be a useful tool for parties who want to settle a case quickly and efficiently, while still achieving a fair and reasonable outcome.