A school district spends $552,000 to defend a lawsuit it eventually settles for $150,000. See report at California Labor & Employment Law blog. Does that make sense? No, of course not. Yet, many defendants do just that. They spend far more than the case is worth. Most employment cases settle for anywhere from $10,000 to 25,000. But, I know the defendant is spending about that much or more until they finally settle the case. if the case goes to trial, they will spend closer to $300,000 defending a discrimination lawsuit.
To be fair, many employers are offended by a discrimination lawsuit. They think they know the alleged harasser and cannot believe he/she would do such a thing. They will go to the mat to defend the lawsuit. At some point, most employers will become more rational. But, for a few others, they will go down kicking and screaming…..