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There are several differences between a negotiated out of court settlement and a civil action for damages.  

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Essay 2: AQA January 2002 a) There are several differences between a negotiated out of court settlement and a civil action for damages. When a dispute arises between two groups - the easiest way to resolve it is by negotiation. This involves meetings until an agreement is reached. However the potential claimant (or plaintiff) may decide to begin legal proceedings rather than negotiate, or if an agreement cannot be reached. Obviously, with the millions of summons served everyday and all the delays that occur during litigation - a final decision can take a long time. Negotiation is often much quicker as the court need not be involved and delays do not occur if both parties want to resolve the dispute with minimum hassle and cost. Civil action is expensive from the outset, with a claims form itself costing money. Each side must take into account the court fees and of course lawyer's fees...

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