What is Settlement?
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Understanding Settlement
Most personal injury cases settle before trial. Settlements can occur at any stage of litigation, from pre-filing negotiations to mid-trial. While settlements provide certainty and avoid trial risks, plaintiffs should carefully evaluate offers with their attorney.
Examples
- 1Insurance company offering a lump sum to resolve a claim
- 2Mediated settlement during pre-trial proceedings
- 3Structured settlement with payments over time
Related Terms
Mediation
A form of alternative dispute resolution where a neutral third party (mediator) helps the parties negotiate a settlement without going to trial.
Arbitration
A form of alternative dispute resolution where a neutral arbitrator hears evidence and arguments from both sides and makes a binding decision.
Statute of Limitations
A law that sets the maximum time after an event within which legal proceedings may be initiated. Once the statute of limitations expires, the claim is typically barred forever.
Discovery
The pre-trial phase in a lawsuit where each party can obtain evidence from the opposing party through various methods including interrogatories, depositions, and requests for documents.
Deposition
Sworn, out-of-court testimony given by a witness or party that is recorded for later use in court proceedings. Depositions are a key part of the discovery process.
Help Your Clients Understand Their Case
Quilia makes it easy to communicate complex legal concepts to your clients.