Settlement

Definition

• An agreement that has been reached between opposing parties in a legal case. A settlement can end a lawsuit without the need for a trial and can be reached prior to court action or during. In civil cases, the conditions of a settlement are often financial, but they can also require the parties to perform an action of some sort. For example, many times after settling a lawsuit, the parties may be required to keep the details of the case and settlement confidential.

Synonyms
settlement contract, insurance settlement, legal settlement

Related Terms and Acronyms

• Abstract of Judgement — Definition,
  • A court document that states how much the loser of a lawsuit owes, and which creates a lien, or a claim on property, when filed with the county recorder where the property is owned.
• Arbitration — Definition,
  • A dispute-resolution method in which an impartial third party, agreed upon by all sides beforehand, makes a decision.
• Burden of Proof (BOP) — Acronym,
  • The legal requirement to provide enough evidence to win a lawsuit. In civil cases, such as tax court, the burden is decided by the preponderance -- the most -- evidence. Except in cases of tax fraud, the burden of proof in a tax case generally is on the taxpayer.
• Collateral Source Rule — Definition,
  • In tort law, the collateral source rule states that the tortfeasor (defendant) cannot deduct payments made by other parties to the plaintiff (such as insurance settlements) from what they are required to pay.
• Contract — Definition,
  • An agreement between two or more parties that can be enforced by law.
• Defendant — Definition,
  • The accused party in a lawsuit or criminal trial.
• Errors and Omissions Insurance — Definition,
  • Insurance that protects architects, home inspectors and contractors from claims by clients for professional mistakes.
• Insurance (insur) — Abbreviation,
  • An arrangement where one party provides financial protection to another party for specific damages or losses.
• Insurance Attorney — Definition,
  • An attorney who works with insurance law.
• Lawsuit — Definition,
  • A suit brought before a court in order to remedy an alleged injustice.
• Levy — Definition,
  • A cost imposed on an individual or entity.
• Loss Settlement Amount — Definition,
  • The percentage of damages an insurer is contractually obligated to pay for after a claim.
• Malpractice — Definition,
  • Negligent acts done by a professional that causes injury to a plaintiff.
• Plaintiff — Definition,
  • The party who initiates a lawsuit.
• Settlement Statement — Definition,
  • A document that details who has paid how much to whom.
• Specific Performance — Definition,
  • A remedy in a court of equity compelling a defendant to carry out the terms of an agreement or contract. It is available only where the remedy of damages cannot afford adequate relief to the plaintiff.
• Tort — Definition,
  • An act that causes harm or loss.
• Tort Law — Definition,
  • Civil law or the laws that govern civil lawsuits.
• Tortfeasor — Definition,
  • A party who commits a tort (a civil wrong).