It has been reported that 95% of all lawsuits settle before trial.  The settlement process is complicated and an experienced negotiator is essential to obtaining maximum compensation.  A settlement allows both sides to control the terms of settling the issue.  The alternative is to allow a judge or jury determine the outcome and thus terms of settling the issue.  By having a judge or jury determine the outcome, both sides take risks and the process takes a longer period of time.  Additionally, both sides incur legal fees which could become excessive. 
Settling a lawsuit is usually in the best interest of both parties.