Most civil disputes never reach a verdict. A settlement is an agreement between parties that resolves a legal dispute without a full trial, usually involving payment, releases of claims, and sometimes non-monetary terms.

Settlements can occur at any stage, from before filing through appeal. They may be private contracts or, in pending cases, entered as stipulated court judgments. Confidentiality clauses are common. Courts encourage settlement to conserve resources and allow tailored outcomes.

Effective settlement requires realistic assessment of litigation risk, costs, and collectability. Once executed, releases generally bar revived claims on the same matter. Poorly drafted settlements can spawn new disputes about scope and enforcement.

• Agreement ending a dispute without trial
• Typically includes payment and release of claims
• Can be private or court-approved
• Saves cost and allows customized terms