Why does the accused settle in court if they are innocent?

Answer 1

Often, despite declaring their lack of liability (innocence) in a civil case, defendants will settle prior to, or during trial in order to avoid the possibility of a jury not finding in their favor and awarding a much higher judgment amount than they are offering to the plaintiff. It depends on how the defense perceives the weight of evidence for or against the defendant and the overall likelihood of winning the case. A defendant may also want to avoid a lengthy, costly trial. The settlement amount may be less than the cost of going to trial and paying attorneys fees.

Answer 2

Settlements, whether of civil suits or criminal proceedings, are a way for the parties to "hedge their bets".

There is always a "finder of fact" in criminal and civil cases. It may be the judge or a jury, depending upon what the entitlement is by law or what the parties select. It is the finder of fact that has to be convinced of guilt or innocence or liability or non-liability.

While the party to a lawsuit or a criminal charge may have strong feelings about their own guilt, innocence, liability, or non-liability, it is always a roll of the dice as to whether the finder of fact will agree. Therefore, a settlement (in criminal cases, a "plea bargain") may be the best bet and lower the risk of a bad result.