The number of legal claims made relating to health accidents has grown significantly over the last thirty years. The government is not in the same position as private defendants when dealing with such claims and legal factors will sometimes be manipulated to disguise the political reasons for settling. This results in inconsistent and potentially unfair settlement or litigation decisions. Government lawyers should adopt a decision-making framework to ensure consistent, legitimate legal advice. This thesis develops such a framework in three parts. Part One of the framework requires that, to be considered for settlement, the claim fit within one of three situations: the existence of legal liability, or of a moral or ethical responsibility, or, for the public good, for example to ensure continued use of a public health program. Part Two considers current and future litigation risk factors against a criterion of fairness. Part Three requires that the settlement design follow an internally principled approach. This framework is intended for implementation by government.