gravedancer wrote:I also mentioned in my comments that settling out of court seemed to indicate that their legal department thought they would lose.
There's many reasons a business might settle out of a lawsuit, but thinking they're going to lose usually isn't one of them. If Kahr thought they might lose this case, so would the lawyers representing the families... and they wouldn't have accepted a settlement.
To me, it's plain to see why they settled.
Add up the cost of a legal team, the cost of any investigation, costs during litigation, and you already have a 6 digit number. Then, add in the cost of a MASSIVE amount of negative publicity throughout the -- potentially -- year(s) long litigation (plus appeals!), and does that sum total equal or surpass the settlement amount?
Additionally, offering a settlement allows Kahr to pay it out on their terms, rather than the court's usually very unforgiving terms. I'd be willing to bet that this $600k is payable over 30 years, which means it's quite an easy number for Kahr to hit each month. I'd be willing to bet there are people on this board with a higher mortgage payment than Kahr's structured settlement payments.
Even though the settlement amount is a hefty sum, it may have saved them millions
over the long haul -- in this case, I think it's a sound business decision resulting from a less-than-desirable situation.
So, the resounding question: Does this settlement mean Kahr is
guilty of negligence?
Absolutely NOT! Why anyone on this forum would rush to that judgement is so far beyond me.
It means they settled out of court to prevent future losses. In my mind, this is simply damage control. They very well could have won this case, but it really didn't matter
if they won - the negative attention they would have received would have cost them more than 600-thousand clams.
Question number two: Does this settlement mean they could have been
guilty of negligence?
Maybe. We don't have access to that info. Certainly, it seems like things weren't stacked in Kahr's favor, but unless that Geo in the garage has a flux capacitor, we'll never know.
I looked up "Ninjas" at Thesaurus.com.
Thesaurus.com: "Ninjas can not be found."
Well played, Ninjas. Well played.