A settlement resolves a claim by agreement rather than adjudication. The claimant releases specified claims in exchange for payment or other consideration, and the case is dismissed.
The overwhelming majority of civil cases resolve this way, and settlement discussions typically occur throughout a matter rather than only at a formal mediation.
Alternative Names:
Case Resolution, Negotiated Resolution
Why it Matters?
Because nearly every case settles, the discipline that matters is knowing what a case is worth and when to resolve it, not whether to try it. Settlement posture drives discovery scope, expert spend, and motion strategy, and a defense team that has not developed a defensible valuation by the time a demand arrives is negotiating without information. In insurance defense, the timing of that evaluation is also a bad faith exposure issue.
Frequently Confused with
Related terms
Frequently asked questions
What percentage of civil cases settle?
Is a settlement enforceable before documents are signed?
