Also, America doesn't have a "loser pays" system, otherwise known as the English Rule. Both parties are responsible for their own costs whether they win or lose under the American Rule. This means that just the threat of a lawsuit is an automatic expense, and winning in court also means losing, just losing less severely. This is generally why parties are so keen to settle, even if they believe they could win in court so as to limit their losses.

https://en.wikipedia.org/wiki/English_rule_%28attorney%27s_f...