A significant reason to settle a case is to avoid the future legal costs.  In practice, a successful party is unlikely to recover 100% of their actual legal costs from the unsuccessful party.  Accordingly, if a party were to spend a further £10,000.00 to reach a trial, and even if they were to win, they would only recover back £7,500.00 of this, doesn't it make sense to consider putting this £2,500.00 into a settlement?