Litigation Risk Management: When Should a Business Settle — and When Should It Fight?

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INTERVIEW ON THE PRICE OF BUSINESS SHOW, MEDIA PARTNER OF THIS SITE. 

Recently Kevin Price, Host of the nationally syndicated Price of Business Show, interviewed David C. Japha.

The David C. Japha Commentaries

On a recent Price of Business segment, Host Kevin Price interviewed legal expert David C. Japha of Levin Jacobson Japha, P.C. (ljjlaw.com). Japha, an experienced trial attorney specializing in commercial disputes and complex litigation, examined how businesses should evaluate settlement options versus proceeding to trial.

 

Key takeaways from the discussion:

 

  • Evaluating True Case Value: The primary question is never just “Can we win?” Business owners must weigh realistic win/loss probabilities, damage ranges, legal fees, appeal costs, and collectability. Settlement demands should be evaluated against the risk-adjusted value of the case rather than the initial complaint amount.
  • Accounting for Hidden Costs: Financial expenses tell only half the story. Litigation consumes vital executive time, interrupts operations, forces disclosure of sensitive data, creates reputational risks, and incurs significant opportunity costs by tying up management in past disputes.
  • When Trial Makes Sense: Going to trial is a rational decision when settlement demands far exceed actual exposure, settling risks setting a dangerous precedent for nuisance claims, or the business requires a definitive ruling on key assets or contract rights.
Japha cautioned against emotional investment, emphasizing that discovery changes risks and requires objective reassessment. Ultimately, settlement is not surrender and trial is not a failure—both are pure business decisions. Owners should ask: If this were someone else’s lawsuit, would I invest my own money to take it to trial?

Over  his  more  than  three  decades  of  practice,  David  Japha  has  earned  a  reputation  for resolving difficult and complex matters, sometimes being the second or third lawyer to take on a case. David has tried many criminal and civil cases to conclusion and argued numerous appeals, post-conviction cases and cases involving mental health issues. He also  currently represents clients in federal and state administrative matters, including ongoing matters before the Consumer Products Safety Commission. David got his start in litigation before leaving the University of Denver College of Law, where he tried his first DUI case in state court through a program called the student law office.  He also negotiated settlements and argued his first administrative appeal  before the Social Security Administration in the winter of 1984, before his law school graduation in May of that year. Soon after starting out, David shared office space with his current partners, Don Jacobson and Daniel Levin at Ptarmigan Place.  There he learned law office management hanging out his shingle and doing evictions, collections and court-appointed federal criminal cases.  And, it was there, in federal court, that David truly cut his teeth in criminal defense litigation, culminating in his appointment  to  the  Criminal  Justice  Act  committee  (which  oversaw  the  appointment  of  conflict counsel in federal court) by then-Chief Judge Richard Matsch. Over 30 years of practice has given David the opportunity to be involved in some amazing cases,  including  taking  depositions  in Katmandu,  Nepal  in  a  complex  criminal  case  in  1991; representing  a  witness  in  the  trial  of  Timothy  McVeigh  (where  David  was  also  a  credentialed reporter for the Intermountain Jewish News); handling criminal matters in Nebraska, Kansas and California and appearing in Washington State.  David has been an expert witness for the Colorado Supreme Court Office of Regulation Counsel in the area of attorney fees for court appointed counsel.

Learn more at https://www.ljjlaw.com/attorney-profiles/david-japha/.

Connect with David on social media:

LinkedIn: https://www.linkedin.com/in/david-japha-23937912/

 

 

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