Heli,
I think that QDM means that some organisations consider two main points in their response to litigation.
1. How much it would cost to defend the case V how much they would pay out of court V how much the court may award in they lose
2. The amount at 1. plus the impact on the organisations or the individuals reputation by being seen to 'cave-in' and admit some liability in whatever the incident was (despite the legal jaron). Some public bodies will pay more attention to their own reputation rather than the emplyees. This is very often a point of contention where an organisation pays up and it looks like they think their employee had 'did something wrong'. The employee feels let down (to say the least)
...but then again perhaps he meant something completely different