When a personal injury lawsuit is mounted, it is quite likely that the case will never actually proceed to court. In many cases, a contract may be formed between the parties involved in which a sum of money is paid to the victim in return for them forfeiting the right to sue the party at fault. This is discussed and agreed upon during a process known as "mediation" and the agreed sum of money is known as an "injury lawsuit settlement". In most cases this occurs during the initial stages of the lawsuit, and may be beneficial to both parties ﾖ it significantly reduces legal costs for both parties, guarantees an amount of financial compensation for the victim, and may save the reputation of a person or company who is to be sued. The compensation which is paid to the victim is however likely to be much less than they may be awarded by a judge or jury. Sometimes an injury lawsuit settlement may also be reached once the personal injury lawsuit has proceeded to court, often in an attempt to reduce the costs which could be faced by the defendant.